Financing a $60k Property...literally the WORST!

[Kelton Johnson]

I'm not sure if anyone of you high rollers have run into this problem, but getting a mortgage on a $60k rental property is brutal!  Investment properties usually require AT LEAST 20% down so that makes my loan $48k, and many require 25% which puts it at $45k.  Most banks won't touch anything under $100k, and even the ones who do have a floor of $50k for their loan amount. Naturally, I've contacted several Credit Unions and even a lot of them cap it at $50k and I've only been able to find 1 or two that will do less, but the rates leave much to be desired.  

The house is a 3 bed 2 bath half duplex, selling for $60k and can rent as-is for $900 easily and up to $1100 with about $10k in repairs.  All in, I'd be looking at ~$350 a month of cash flow if I could get a solid 30 year mortgage on a $48k loan, unfortunately, that's easier said than done. 

I was wondering if any of you guys had advise for a newbie like me in this situation (having only $20k to invest with really limits my options on this one).  I'm in the Dallas area, so if you know any good local banks or credit unions, I'd certainly appreciate that too. 

Seems like this price range is a cash-buyers market unfortunately.  

[Jay Hinrichs]

@Kelton Johnson   here's something creative.

simply pay 2k more for it so you can get the loan you want.. only affect your cash flow by 10 bucks maybe... and you get the deal instead of missing it... seems logical to me.

these rates are not going to be around a lot longer so why quibble over 2k when you will make that up in the first year in cash flow.