Financing Getting Started On Potential Good Buy

[Justin McGonigal]

Your goals and story: Looking to grow a portfolio of SFH rentals to create a passive income revenue stream. Looking to supplement income.

Location of property: Maryland

Purpose of financing: purchase

Type of financing sought: Not sure

Current or prior ownership of real estate: In the process of closing on first purchase. Got a good deal, not great, and financing using conventional methods using 20% down. 

Occupancy: investment with traditional long term leases

Value of property at present and/or your offer price: $102,000

After repair value: $125-130,000. 

Anticipated or actual appraisal issues: None. House is foreclosure and comps are solid within the neighborhood. 

Current rents per month: $n/a

Fair market rents per month: $1200

Down payment or equity: This is the issue, cash reserves are low as of next week when other purchase goes through. Look at this property almost as a BRRR with the instant equity. Not much in repair appears to be needed.

Source of down payment funds, if applicable: Could do HELOC (maybe) but only have 22.4% equity right now.

Income Source: Have a salaried W2 position as well as side hustle income.

Gross monthly income (optional): $9000 (household)

Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: $1400 primary home, $440 property close next week, $250 car payment

FICO: Excellent

Credit issues: N/a

Additional details: 

Essentially looking or insight on potential ways to make this deal happen or just deals in the future.