Posted by Dave T on December 21, 1999 at 18:54:38:
Thanks for the prompt response. To answer your questions, I live in SC. The property in question is located in MD. I bought the property with the intent to use it as an investment rental. Does investment use change the equity ratio before PMI will be waived?
Even though my original plan was to hold for rental income, that is now my alternate plan. Retail prices for idential units in the same development range from $86000-$89900 over the last 15 months with recent sales bringing the higher prices. I now will retail the property through a realtor for 60 days at a list price of $87900. During days 61 through 90, the realtor will continue to market the property but at the same time, I will use a property management service to secure a tenant. Both the realtor and the property manager know that during the month of March, they are in a 30-day “race” – the winner being the first to bring me an acceptable tenant or buyer. From day 91 forward, the property will be exclusively marketed as a rental. I do have an unconditional release in my listing agreement that voids the agreement after day 60 if I obtain a tenant before I get a buyer.
If I don’t get a buyer, I will wait a year or so then again attempt to retail the property when the tenant gives 60 days notice. In the meantime, with a tenant in place, the property will generate about $200 monthly cash flow.