Posted by chris on January 21, 2000 at 23:13:05:
Mike-
One thing that you might consider since you plan on living in the property is to contact your city/county housing or community development department. Ask them what programs they have for fixing up properties and mention that you are an owner-occupant. Check the government pages in your phone book for listings.
For example, last time I checked Orange County, Ca had a 0% interest rehab loan available for owner-occupants.
-Chris
Need some help!!! - Posted by Mike
Posted by Mike on January 21, 2000 at 20:23:21:
Found a very motivated seller who has let the property sag a little. Basically, it is in great shape but needs a lot of cosmetic work. The value is around $100k from the last appraisal in Jun 99 and the local neighborhood has like homes selling for $115k. The owner currently has a VA loan and will accept $80k since the VA will take this and out the difference of his loan default in a VA compromise because he is about to go into foreclosure.
My question is: how do I structure the financing to get about $10k cash at close for improvements? (I am planning to live in it for the next year and then rent it out when I move). And what are the best financing options besides having to go for a conventional bank loan?(My back end ratio really stinks).
This will be my first deal, and I really would like to do this right. But if I cannot get into the property myself, what is the best way to go about assigning the contract over to another investor for a small profit? Thanks for your help!