crews58
Contributing Member
Cash: $ 6.40
Posts: 30
Joined: 21 Oct 2012
Location: south carolina |
first rental property |
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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
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Sun Jun 23, 2013 12:19 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona |
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.
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Sun Jun 23, 2013 6:13 pm |
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B.Johnson
Member
Cash: $ 2.30
Posts: 11
Joined: 01 Jul 2013
Location: Kentucky |
Re: first rental property |
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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.
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Wed Jul 17, 2013 6:07 pm |
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littleroc02us
Moderator
Cash: $ 384.35
Posts: 1891
Joined: 09 Feb 2009
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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)
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Wed Jul 17, 2013 8:25 pm |
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