All Forum Posts by: Mohamed Frihi

thanks Jon,
I actually do have some more cash aside, a relative willing to invest, and about 25k in 401k.

I just wanted to do this deal with least money down, that way i get higher return on my investment... (as long as it positively cashflow of course) and keep my cash for more deals.

is combo loan a good idea for this case?

Hi friends,

I am looking at this 2 unit property, asking price 129k, total rental income is 2275$/mo. property taxes are 2055$.

I would offer 120k, and which still looks like a great cashflow.

The problem is that lenders i talked to ask for 25% (bcz im buying as investment) and I don't have the cash.

- Is there a way to get a low downpayment (eg. 10% instead of 25%)
- What options do I have to get this deal started knowing that i have only around 15k or less in cash.

FYI: I qualify for FHA but I don't want it bcz I don't want to live in it, only for investment.

I am starting by one rental property and I want it to be under an llc for my own assets protection.

- Should I buy the property under my name then I setup an LLC and somehow transfer the ownership? In that case the loan is still under my name, am I considered protected? or there's a way to also transfer the loan under the LLC's name?

- Or I setup the LLC first then buy the property under it ? and in that case how can the llc qualify for the mortgage since it doesn't have any income on it's own initially?

What is the best way to start this? For first investment, I want to make sure my personal assets are protected.

A question came to my mind.

If I get 30yr fixed mortagage for an investment property (rental), and in this very turbulent economy, say for example the bank is going through tough times, is it possible (in theory at least) that the bank call my loan for no reason??

And if so what is the standard procedure they go through? They ask me to pay every last penny or they foreclose the property??