Looking For Help
I am a begginer bird dog and looking for help on a property I have found in southern WI. Anyone please help.
I am a begginer bird dog and looking for help on a property I have found in southern WI. Anyone please help.
Bird Dog.... The way these forums work best is when you give details and ask a question.
Many of us will try to answer your questions!
[addsig]
thank you for the reply, but I thought that by post all the details it might be considered an ad and get deleted. But here are the details; a single family, 4 plus acre, appraised value 315,000. Owner is facing foreclosure and needs 252,000 80% to get out of it. The owner would like to rent it from whoever buys it and then after 12 to 18 months buy it back. Property is adjacent to a farm that is in process of being developed during the time frame mentioned, so the value will increase quite a bit in the next 18 months. One more thing the development behind the property must tie into the city water/sewer, the only access to these lines is through this property, and there have been surveyors in the area looking for the best route for this on this property. So there is the potential for an additional 70 - 100K from the developer. Also, the appraiser mentioned that if there were an additional bedroom and bath in the basement it could go as high as 340K in value.
Owners must close ASAP this week.
Thanks in advance everyone.
Sounds like you could pull at least $25K out of it on a refinance, but you might do better getting a home equity line of credit. How much you can borrow really depends on what it will appraise for, what interest rate you are willing to pay, and if you are willing to pay mortgage insurance.
You also have to consider whether your credit/income stream will support another purchase. Keep in mind that lending institutions consider properties where the Principal, Interest, Taxes, and Insurance (PITI) payment is more than 75% of the rent income to be operating at a loss. Clearly this is not a problem for the property mentioned above, but may be for the other property. There is little point in borowing money on your existing property if the cost of additional borrowing to purchase the next one is too high.
Good Luck!
Chris
Write a small business plan based on eveything you just said and give it to your banker.. You should have bank behind you if you are running these kinda of numbers through them... Get a creditline and buy next fix and then mortage or flip. www.indiesbeachrentals.com
Thanks Amy - no email on your profile
I added my email to my profile so feel free to contact me also.