Last minute issues

[Michaelina Stathakos]

We are about 4 days away from closing and some major issues have started to arise, any advice would be great!

We bought a quad with the knowledge that 2 tenants were staying giving us just enough money to cover the mortgage, which was great because most of our cash was going to build out another property of ours. 

Here we are 4 days from closing come to findout all the tenants are leaving! Bye bye money for the mortgage! I wouldn't worry much in another town but this town is a college town and now that the semester has started it can be 10 months until the renters start looking again!

And to rub salt in the wound the seller already gave back all their deposits. Now if they tear up the place or ruin anything while moving, we have no money to cover damages...

All this crazyness is making me want to move in and save $10k off on the down payment!

Any one experiance this before? Anything we can do about the deposits?

[Stuart Birdsong]

Michaelina,

      If you are obtaining a conventional loan and closing on September 12th, your first Mortgage payment is not due until November 1st. Check with your mortgage broker, but this should be true. This gives you a month and a half to find renters to at least mitigate some of the damage of not having renters in the building. Regardless of whether or not it is a college town, there should still be folks out there looking for a place to rent. Place an ad on Craigslist to see what kind of interest you generate, you might be pleasantly surprised. I too live in a college town and have had little problem renting my units outside of the typical rental cycle. Hope this helps. Cheers!

Stuart