I did the math out and I think it can make money. What do you all think?It's an "oversized" 2 family (both with 3 bedrooms, dining room, eat-in kitchen, multiple porches) in the old but pretty nice (and getting nicer) part of town. There is an established commercial space in the basement... it's on a hill so the basement is street level on one side. And a seperate, cement 2 car garage.Asking price: 180,000Annual rents: 30,000 Condition: very good. New roof, seperate utilities, beautiful interior woodwork, stained glass and replacement windows, fully insulated, fenced lot, probably was owner-occupied. However, it was built in 1899, so it's no spring chicken.water bill: 200Property taxes: 1904.48I spoke to a lender offering 5% down on investment property, with a "little higher" interest rate (he's supposed to get back to me), and PMI.Also, it's a very tight rental market... especially for nice 3 bedrooms.
This deal looks quite promising and should cash flow quite decently. You said all the right things; GRM of 6, separate utilities, tight market, good and improving area.Steer clear of a lender "offering 5% down on investment property"; there will be some hidden and very painful hooks in any such deal.
"Steer clear of a lender "offering 5% down on investment property"; there will be some hidden and very painful hooks in any such deal."Do you know what some of those hooks might be? And what is the lowest % down that you can usually get without hooks? The banks/ credit unions in my area want 30% down.
There's nothing wrong with 95% LTV loans for rental property (SFR only). IndyMac Bank is the purveyor of this loan and it's a winner.Catherine CoyMortgage Broker
There's nothing wrong with 95% LTV loans for rental property (SFR only). IndyMac Bank is the purveyor of this loan and it's a winner.I'll believe it when I see it.
jiml8 ~Honest. This loan exists. Want to see a rate sheet? Write to me offline.Catherine CoyMortgage Broker
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