I am purchasing a property (trying to) from Freddie Mac. I value the property through comparable sales at 140-170 thousand. (15 sales within a 20 mile radius with similar features, this last year) Its a small area. The purchase price is 65,600 dollars. I had a home inspection and I estimate that repairs will come to about 15000. If I hire all of it out. It would take 3 months to rent and have a 200 month positive cash flow or sell, which would take about 6 months.
I qualified for a loan with 20% down. I currently own 2 other properties. One is a duplex and the other is a condo. I do not have a schedule E yet because I just started renting out one side of the duplex in Feb of this year and the other unit last month. (i am filing now, any help would be appreciated) The condo had a longtime tenant (8 years or so) and I purchased it in November.
I have a high debt to income ratio of about 45%.
I currently have 35000.00 in cash.
I was told that me putting more down would not help my situation because of my undocumented income.
My next step is filing a schedule E. I am a little hesitant, I am not sure if its going to help me or hurt me. I renovated the duplex but not the condo. It took me 2 years to renovate and was my primary residence.
Is there any other way?
Any help would be appreciated.
Troy