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Tell us more. Do you have an Accountant??
do you have a Business Name and a Federal I D Number??
Is this your first investment in property??
Do you know about SCORE?? SCORE is FREE.
You need to run the numbers on this one. Compare both good faith estimates. You have to look at the interst rate as well as what junk fees the title company will be charging you to close. ALSO you say you can refi for 75 % of the APPRAISED value. In this market a property is worth what someone will pay for it, not necessarily what some appraiser or the taxing authority says it is. You could be getting into some super hot water if you proceed with this plan. If you have a realtor or other real estate professional that you trust you may want to get some advice.1 of 1 people found this helpful
Just a thought...how financially secure are you to be servicing the debt on two properties? I am assuming that you will be renting 2 or 3 units in the triplex but as a landlord you will need to have cash reserves when the tennants damage the property. Are you looking to purchase other rental property as well?
It is a buyers market now but you might want to slow down a bit, it seems as though you are moving too fast....as real estate values have not hit bottom yet.
Thanks for your advice... I have been worried or asking myself am I moving to fast, but I do have the money to support the properties I own right now and then some. If I only stick to real estate I could support the mortgage on a couple properties for a year or 2 and that is in worst case scenario that I can find no tenants. I have owned 1 house for 4 years and I have been overseas 3 of those years and just decided to rent that one out. I have talked to my financial advisor, and was able to get a budget worked out that still leaves me room to purchase at least one more property. You say the market hasn't hit the bottom yet and I really believe you but how hard do you think it will be for me to purchase another home with out a job? I plan to return home by October or maybe December but I will need a place to stay.... do you think I should look now or wait? Your advice is greatly appreciated.
The answer above that points out that you may be moving too fast is sound advice!1 of 1 people found this helpful
The no income, stated income loans have gone the way of the Dodo Bird. If you feel secure in your
Largecash cushion, and you want to go forward check with a reputable Real Estate Brokers and Real Estate Appraisers as to property value and trends in the area[s] of interest. Look into purchase of a duplex Before you are out of a job. Duplexes are near the prices of single family homes in most markets and have the benefit of easy conversion to pure income when ready.
Even Warren Buffett does not see the bottom yet.
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I am purchasing a foreclosed Tri-plex... The bank will only loan me 75% of the selling price, but after purchase I can refi for 75% of the appraised value and get my initial investment back. The other option is to open a HELOC after I close @ 80% value minus loan amount. I only plan to use the funds for my next investment property but not sure the best way to go about it???