OfflineOkay, I'm in college and transfering to a new school. The town population is over half college kids. This drives rent up, alot. To make matters worst I'm from out of state so to claim residency i need to get a job in state and also prove income from state, and need to show that i am living in this state. So my desicion has been not easy so far. First I have a an opportunity to keep part time employment with the company I currently work for in this new location. Not enough to prove to a bank that i can make the mortgage payments. I hesitate to ask my parents to co-sign because my mother just lost her job, and my brother is going to start college this year. However, rent is very profitable there. I have few options at this time but I cannot bring myself to pay over $25,000 for school a year being out of state. So i need an in-state address and job. I have around $5000 for a down payment which is not enough to pay a down payment for anything there. Trailers start at about $75,000 there. So i need help deciding my course of action. I have looked for forclosures and REO's but they are limited because of such a thriving market. I would like to offer a lease option but am still worried because the cheapest house i could find would be $150,000 and i have no bedroom renters lined up. Any advice?
Tough spot
Posted on: Thu, 05/01/2008 - 07:20
Here are some thoughts:
- You may look for private lenders that will invest with you an take a return on the rents and/or equity - if you purchase right.
- Because you are doing owner occupied you can get FHA at 3% down. In fact that down can be given from the sellers through a down payment assistance program.
- A great idea is to pre-rent or at least line up pre-renters before you find the house or have closed on the house. You can have an idea of what you are looking for and run an ad for that type of rentals for others that would have interest. If they call before you have the house you can let them know the house is in the works but you can follow up on them when you own the property.
This will possibly handle your rental situation and to make money you can do assignments, use the private lenders to flip or rent, use hard money lenders, work on lease options, be a bird dog and so on.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Nstreet
I totally agree with your thinking on this one. I have done the line-up for renters before and it works out great. Good info on the DP as well
Anita
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Look for seller financing on a multi-unit. Live in one and rent the others. Let them pay the mortgage. Seller financing is much more common on multis than SFRs. And in this environment should be even more common.
FHA is great for OO and especially first time home-buyers. The down payment can be gifted from a non-profit (through the seller) and seller concssions on the down can get the buyer in NMD. But.... you do have to qualify for the loan.