Sub30 condo package purchase

[Anna Buffkin]

I have found  a niche in the "shallow end" of the real estate pool with sub30 condos and  $100k +/- homes

I have been offered for purchase 3 condos - a 2/2 and two 2/1s for $80k total.  I already have a condo in the same complex which I purchased from the same investor.  He is scaling back as he is getting older and emailed me to see if I was interested in his other units in that complex.  My unit rents for $750.  2 are occupied and rented at $700 and $750 per month with what appears to be quality tenants.  The 3rd will need a tenant as the tenant moved out this weekend at lease termination. This unit was rented at $800 but it was over market and will probably rent for $750 with the next tenant.

I fret over every purchase. I have a credit union that will make in house loans (portfolio loan) on investment properties up to $120k for 10 years fixed with 30% down. I actually have a $21k mortgage with them. My problem is they won't take rental income into account until the unit is owned by me regardless of existing leases and then they take 75% of gross rent. This makes the DTI too high for a loan with them for this purchase; however, after 6 months, I can refinance and count 75% of the rent on the new purchase. I have already spoken to my banker about this option. Most banks and private lenders don't like to loan on such a low amount. I have a private lender who will give me an 18 month bridge loan with a 6 month prepayment penalty for a monthly payment of $700.

The numbers appear to work, but I have never done a bridge loan  before and need some reassurance. 

The property is in Columbia, SC.

[Anna Buffkin]

I'm feeling a little better about this purchase as I may have secured long term financing!