All Forum Posts by: Will Bradford

Brandon I currently have a condo as a rental. I lived in it for 2 years before renting but purchase price was 93k. I put 8k into it for the rehab. It's been paid off for a few years now but I think the mortgage payment was around $425. HOA fees are $175 per month and taxes (abated) are about $550 per year. Also the mortgaged about was 74k. I rent it out on the low side for $690. I've had the same tenant for 2 1/2 years and I don't want him to leave so I just leave the rent as is. But as a paid off rental it is great. I clear $515 each month. With a sizable mortgage they are tough. Are you able to put any more of a down payment into it?

Thanks for the info guys. That is exactly what I was looking for. Sounds like this is not a position that I want to be in. Again thanks for the help.

So I have a condo that is currently rented but it about 3 hours away. I would prefer to sell this property as I dont like the long distance landlording and it is paid in full so I could also free up cash for other investments.

The building is not over 50% owner occupied as the developer is holding a lot of the units as rentals currently. As a consequence this is not an FHA approved building and local realtors have stated that it is difficult to find buyers with the 20% down.

My question is can I sell the property to a buyer and have them get a mortgage for say 80%, carry a second mortgage myself for around 15% and them put 5% down.

These numbers are just for example sake and I am just looking for opinions on the idea in general. Also if you have done this any pointers that you might have.

Any help is appreciated. Will

Just as an update for everyone I spoke to one of the community banks. They have said they would do a 10/1 ARM with 30 year amortization. Also no money down as my current rental would be used as collateral. Rate is going to be 5-5.25 for the 10yr.

Anyone have anything good or bad to share about this? Thanks for the help.

I believe Marlon is referencing flipping. 50% rule is used for buy and hold. In your instance there are only a few variables. Rent, purchase price an down payment would be the main ones. If your rent price is at the market rate there is not much you can do there. Maybe you can get the purchase price down or put more money into the down payment.

Besides that you can manage the units yourself and make the repairs yourself to save a bit on your expense side.

I'm not sure about seller financing. I really dont want to go that route though. I am a pretty conservation person and am just a bit dumbfounded as to the hesitation on the 30yr.

I also dont know any private money lenders but also dont want to go down that route.

So I have searched and haven't found anything that really is similar to my situation.

I currently own a condo that is paid for in full. Value is about 100k. The building however only has about 50% of the units sold and the developer owns/rents the others. The condo is a rental. I also owe about 35k on my home.

I am looking to purchase my second rental. I checked around today about a cash out refi and was told that this could not happen because the percentage of owner occupied units was not high enough. Fair enough.

I then asked about a conventional 30yr mortgage with 5% down. I was then told that these are very hard because the fixed costs cannot be higher than, I believe it was 5%.

So now I am wondering what to do. I have plenty of cash in reserves but obviously don't want to tie it up as the property that I want to purchase cash flows.

Anyone have any suggestions for this. I'm a construction guy and not financing. It just seems crazy that an excellent credit score, plenty of cash in the back, and conventional 30yr loan wont work.

Hey Sandy welcome. I'm here in JC as well. Sounds like your getting after it. Congrats.

This is really easy. It sounds like its been pretty much messed up from the beginning. If she wants a 1 yr lease just write her a new one. In reality if a tenant wants to leave at anytime they can. You can play this legal battle game all you want but its not worth it. I would rather have someone in my property that wants to live there. Not someone that is upset with me because I threatened legal action. Just play nice.

Well that is definitely something that I will look into.

But to further push the selling aspect does anyone know of a way to secure bank financing to sell a condo that is not FHA approved. The realtors that I spoke with all said that 20% down was pretty much required without this. The developer also owns more that 10% of the properties.