Help deciding how to fund 2 new rentals
Your goals and story:
I currently own a SFH that is rented out. I'm looking to expand my portfolio with 2 additional buy and hold purchases
Location of property:
Gadsden, AL 35903 for both
Purpose of financing:
purchase both. the 3/1 will need some cosmetic work on the inside and a new hvac system. the 2/1 is pretty much move in ready with a few minor cosmetic fixes.
Type of financing sought:
looking at hard money or private, but not sure.
Current or prior ownership of real estate:
currently own 1 SFH that is rented out and mortgage free.
Occupancy:
investment with traditional long term leases
Value of property at present and/or your offer price:
3/1 property looking at placing an offer of around $55k
2/1 propery looking at placing an offer of around $70k
After repair value:
3/1 should come in around 80-85k
2/1 should come in around 90k
Anticipated or actual appraisal issues: no
Current rents per month:
both are owner occupied.
Fair market rents per month:
thinking i can get $850 - $900 for both properties based on comps and rentometer data
Down payment or equity:
love to be able to use the equity in current rental for down payment on these 2 properties
Source of down payment funds, if applicable:
own funds if necessary, or equity in current rental
Income Source:
Salaried/W2 in IT for over 25 years.
Gross monthly income (optional):
$11K
Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc:
Debt to income ratio is 10% including mortgage
FICO:
Excellent
Credit issues:
none
Hoping i'm on the right track here. If not, please educate me. I'm still a newbie and any advice is welcomed.
Thanks