All Forum Posts by: KaTrina Jones

Hi Joseph... did you move forward with this process? If so, how did it go and what contractor did you use? Would you recommend the contractor?  I have a property under contract. I am looking for a 203k contractor. 

Thanks @Brandon Sturgill the property is free and clear... points to the seller... he said he may possibly want a few thousand for good faith as a downpayment. I never secured an owner financed deal. Its a SFH.

Can anyone point me in the direction of a good calculator? I have never done an owner financing deal. Could someone please explain this and what the monthly payment would look like? Numbers below:

Purchase price 59,900

2 pts 

12%

3 year balloon

http://onwuanibe-law.com/site/titlecompany.html

Welcome. A good place to start is a local REIA. I like Baltimore REIA.

Those numbers sound good but are they realistic? What area are you looking in. I find a house for 20K usually requires a lot more work... maybe 40K or more. Also if you did find a house for 20K that only needed 15K of work it doesn't seem like it would be in a neighborhood that would command 1300 in rent. Are you a new investor? I think most most banks that offer refis without tenant performance usually require a relationship being built. 

So to delay the process of saving for an eternity for the down payment on my first property I decided to apply for a HELOC. I was approved for more than enough for a down payment and I have just enough for closing cost in saving. After calling my lender he explained that I need at least 6 months in reserves that I need to show via savings or liquid funds such as retirement or other investment funds. This I don't have. I will have money left on my HELOC that I can pull from if it really comes down to it but that will not help me to qualify for the loan.... ANY advice on what to do? Maybe a way to get around it? Should I draw all the money from the home equity and sit on it for more than 2 months? Does that make the money "seasoned"? Keeping in mind I would have to pay the interest and payments on those funds. Any advise is welcomed.

Well this is interesting. It's like a TV series. 

Margin too small. 

Can you get a home equity line of credit? That is how I plan to finance the down payment for my first duplex. The interest rate was good from my credit union. My loan officer actually suggested it. I wanted to go with gifted funds but they would need to be "seasoned". They don't allow gift money for an investment property down payment. I can use the HELOC for the down payment but not the closing cost.