Posted by phil fernandez on June 06, 2000 at 08:06:29:
What’s the duplex worth ? We’ll need to know that. And all of the expenses. Also what do you plan on doing with the property? Keeping it as a rental long term or reselling for a profit?
The $44,000 assumable mortgage is fine if you could talk your seller into taking back a second for the balance. However your seller doesn’t want to hold paper.
A hard money loan wouldn’t work here if you plan on assuming the existing first. The hard money would be in a second position. And the hard money lender will want to be in first position. It is an equity based type of loan.
I would , if you have good credit, get a new mortgage on the duplex. If you are going to live in one side you should be able to get 95% financing. Therefor you will only have to come out of pocket $3,000. You have a rent from one side of $500 and hopefully another $500 for a deposit equaling $1,000 to put toward your downpayment requirement. That leaves you with $2,000. Borrow that from a credit card or sell something. There nothing down deal done. Also have your seller seeing he’s getting all his equity in cash pay your closing costs.
Another plan of attack would be to convince the seller while he doesn’t want to carry a mortgage , maybe he would be willing to hold a second for the balance for only a year. At the end of the year you refinance him out of the deal. You’ll probably need the one year of seasoning before you can refi. Again a nothing down deal.
Use your creativity. It’s not that hard to get into a good deal without using your money.