Posted by Jim Simons on January 28, 1999 at 16:54:54:
I have a situation and would appreciate any help or suggestions you could give me.
Abour a year ago, I bought a SFR for $56K. At the time I bought it, the house appraised for $59k. However RE Comps for my area and comparable house show FMV of about $65k. The average rental price in my area for comparable house is about $700-$800 a month.
I have found a 30 acre farm I would like to buy. I’m actually buying it as an business investment. I’ve done some research and know of a business I can set up on this property that will most likely make a lot of money.
Problem is I need about a $30k-$40k down payment.
I think I’ve found a way to come up with some of the down payment. I know someone whose credit is not very good. They want to Lease/Op my SFR. They have about $15k they will give me down and will pay $750 a month for rent. If they eventually bail out on the L/O I know I can easily rent the SFR for $750 a month to someone else.
What do you think? How should I go about doing this? Can you think of any other (maybe better) way(s) I could get the down payment for the farm? I have excellent credit, however couldn’t qualify for a loan of this size?
Thanks for any and all help!