L/O Questions/ Personal Property
Hello everyone!
I have been reading alot about L/O and have an idea and a couple of questions.
I'm a newbie and want to get started at REI, w/little capitol and shaky credit. My goal is to generate funds to buy a rehab and live their while I fix it up. I think this would be a good way to start out w/o a lot of risk or time constraints, as I would have to do repairs as I have the money. My idea is to L/O my current residence which is a 2 family house. My current PITI is 803/mos(75000x6.25x20yrs fixed).
I owe 72k and it is worth @ 90k. If I can L/O this place, I doubt I could get much more that 800 mo for it. Should I try to refinance it for 30yrs(lower monthly payment) and take out my equity to use on a rehab? What benefit does a T/B have by L/O at the same or higher than a mortgage payment? Is it because they can't get financing? What are the risks in this type of venture other than the T/B renigging on the deal? Do L/O ever trigger a DOS clause? I read that it's a good idea to keep the insurance in my name. Is that the same for water/sewer, or would the new T/B pay that. I figure I would offer this deal to my current tenant. She has been a renter here since before I bought the place. She has a great job and has been a great tennant. This would give her the opportunity to own the house for not much more than she currently pays in rent, provided she rents my unit. Thanks for any help guys and thanks for your patience with a newbie!!
Sickdog
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