OfflineHi all,
OK - I have been reading Dean's books, looking at Hud listings, and listings on CL, driving around town and writing down FSBO, rentals, & Huds.
I thought I had an agent but for some reason she never bothered to get back to me the last time I called!!
No problem - someone out there will want to work with me right?
After a couple weeks of watching the Hud listings, I seemed to be going back to this one Hud property.
So I called the Broker, and immediately liked him. He seemed to be open to giving advice and was almost impressed when I told him I wanted the property for a rental but that I would rather flip it but now is not the right time - I told him I wanted to rent it out for a few years and sell it when the market improves.
He had several pieces of advice that sounded good.
He is an investor as well.
I told him that I had a pre-approval but was not sure I wanted to use this bank. He asked how much they required on the down payment and I told him 20%.
He immediately said not to use them.
He mentioned a local bank we have here and said that I should call this particular person and that if the home you buy has atleast 20% equity then the down payment is -0-. He said you only pay the closing costs.
Has anyone heard of this??
I am going to see the property tomorrow.
I know the location and it is a good neighborhood.
Specifics I know are this:
3b/2b, one car garage.
County appraised at 75,000.
It's listed at 45,000.
Median rent in this area for a 3b is 750 I will set the rent at 650.
Need to get repair costs estimated.
One side of my brain says I'm moving too fast but the other side says, do it, go for it, get in the game.
Any thoughts to share on this or advice??
Shelly
JUMP ON IT!!
This use to be quite common in the days prior to the banking crisis but is harder to find today.
Just check your numbers for the rehab and make sure the numbers make sense; and that you can get the rent your project.
If things check out, pull the trigger; don't get analysis paralysis.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Thanks Bill - I know what you're saying - Analysis paralysis!
I am so excited I can hardly contain myself.
I know it's a small deal but it works for me.
Thanks.
Shelly
You can keep saying, should I or shouldn't I. What if someone buys the prop out from under you. The you will say why didn't I. It appears the prop is a good buy and with a bank saying no down is required, the doors are open
Ya gotta get your feet wet. Why not now...Good Luck....Jan
If the median rent is $750 then you charge $725
$100 is too much and you'll feel the difference
Or charge them the standard $750 but give them a $25 Target giftcard if they qualify; you get your full rent and they feel like they got something out of it as well