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first rental property

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crews58
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first rental property  Reply with quote  

Alright well i set a goal out to try and buy at least one rental property that will have some return on my money. i Came close on one, only problem is the seller was an investor and want cash up front, not going to happen b/c i wanna use the bank and takes 3 weeks to close. ? should i stay away from these type of sellers. ? Is it nuts that i wanna use a conv. mortgage loan to purchase rentals? ? Broker once told me i didnt have enough money to be an investor, i have 13k saved, a 750 credit score, descent monthly income. no car payments. what is yalls perspective on that. thanks
Post Sun Jun 23, 2013 12:19 pm
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coaster
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And I'll bet that broker is *not* an investor, and therefore not qualified to give you advice about it.

~Tim~
Post Sun Jun 23, 2013 3:25 pm
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oldguy
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It doesn't matter much to a seller whether he gets a cash offer or if he has to wait 3 weeks to get his cash from the loan company, either way he gets the cash. When I sell a house, I listen to all offers and then pick the best one.

quote:
i have 13k saved, a 750 credit score, descent monthly income. no car payments. what is yalls perspective on that. thanks


Sounds OK to me. Do you have equity in your home? Still have 3 cars? CC debt? A lender has to look at the whole package.
Your $13k is 20% of a $65,000 house, that leaves a $52k loan, that's about $300/m if you get a 5.5% NonOwnerOcc note. Depending on your part of SC, taxes & ins add about $100/m to $150/m - so you'd hope to rent it for over $450/m.
Post Sun Jun 23, 2013 6:13 pm
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B.Johnson
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Re: first rental property  Reply with quote  

quote:
Originally posted by crews58
Alright well i set a goal out to try and buy at least one rental property that will have some return on my money. i Came close on one, only problem is the seller was an investor and want cash up front, not going to happen b/c i wanna use the bank and takes 3 weeks to close. ? should i stay away from these type of sellers. ? Is it nuts that i wanna use a conv. mortgage loan to purchase rentals? ? Broker once told me i didnt have enough money to be an investor, i have 13k saved, a 750 credit score, descent monthly income. no car payments. what is yalls perspective on that. thanks


Sounds like you are in good shape to buy investment RE. I had better luck going to Mortgage companies than banks. Try to make no less than 20% cash flow. The higher the better.
Post Wed Jul 17, 2013 6:07 pm
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littleroc02us
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The more money you put down the higher the cash flow since the mortgage is less.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Jul 17, 2013 8:25 pm
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