All Forum Posts by: Daniel Volk

@Anthony Colon I'm curious what you ended up doing here. I am in a similar situation and think I could negotiate the seller to lower the price by several thousand dollars. 

@Corey Hawkinson I am going for cash flow, yes. This property is $23,000 and brings in $1,200 = the 5% rule! However, the high interest rate I would be using to acquire the property would not be sustainable long term i.e. I would only cash flow $85/month for the full 7 year loan. However, if I can purchase it with the unsecured loan (meaning cash, quick close, lower closing costs) and then refinance to a lower interest rate, I could get around $400 cash flow per month. I hope that makes sense. 

So, is this possible?

I'm trying to acquire my first rental property in Cleveland, Ohio (44104) but am having trouble finding a lender to fund an investment property under $50,000 and I don't have enough to pay outright. It is a duplex in a poor neighborhood with no appreciation. I played around with using an 84 month unsecured loan for around 12% to purchase the property but the small positive cashflow this way is not good enough to keep over the 7 years - I've used a high vacancy, repair, and capex to set aside additional funds though. If I use the unsecured loan to purchase the property and get tenants in, could I find a lender to offer a better rate as a secured loan on the property later? Running the numbers with a lower interest rate and/or longer loan term does provide good enough cashflow to make it a worthwhile investment. 

Thoughts?

Update: the seller just responded and would accept $23,000 cash offer which helps, but still slim margins of cashflow. 

I'm trying to acquire my first rental property in Cleveland, Ohio but am having trouble finding a lender to fund an investment property under $50,000. One specific property I am interested in is listed $29,000 but I still don't have enough to pay outright. I played around with using a 60 month unsecured loan for around 11% to purchase the property but the small positive cashflow this way is not good enough to keep over the five years - I've used a high vacancy, repair, and capex to set aside some additional funds though. If I use the unsecured loan to purchase the property and get tenants in, could I find a lender to offer a better rate as a secured loan on the property later? Running the numbers with a lower interest rate and/or longer loan term does provide good enough cashflow to make it a worthwhile investment.

Thoughts?