Posted by Aaron (IA) on March 13, 2002 at 09:22:07:
Whatever you do, make sure you tap your equity before you sign contracts or L/O agreements with a buyer. I would just figure out which sale (monthly payments on a contract sale or fair market rent) would bring in more $$ monthly and go that route.
Selling personal residence on L/O - Posted by Bob
Posted by Bob on March 12, 2002 at 21:41:46:
I’m interested in possibly selling my personal residence on a L/O. The only problem is that I’d use the equity in my home to purchase my next one. So if I re-fi and pull out cash to put down on the next house, then I wouldn’t get that much monthly cash flow. Can someone help explain how I’d structure such a deal so that it would work for me?
FMV is 239k, and Mtg Bal is 130k.
What if I sold it with some sort of owner financing (249k sale price, 10% down with buyer making monthly payments?). I think the monkey wrench in this is that I’d need my equity, or most of it, to put down on the next home.
Any advice would be appreciated! Thanks.
Re: Selling personal residence on L/O - Posted by MicheleCO.
Posted by MicheleCO. on March 13, 2002 at 10:00:59:
Well, Actually you should apply for you home equity line of credit while you are living in the house. Then you can get Owner Occupied rates and terms. You may have a harder time finding a lender who will loan on investment property and the terms will not be as favorable if you do it while you are living there.