skeer27 said:wiredspider said:Sheriff sales are typically cash purchases...if you don't have 20%, I'm not sure how you are going to buy.

Actually I did a Sheriff Sale here already. You need 10% day of the auction and have the mortgage 30 days after auction

Mark
my sheriff does not allow any entry into the property before transfer of title...thus, the lending institution would have to be comfortable with a drive-by appraisal...plus, you'd have to procure insurance against a property you know little about and dont own.

is your process different? you've actually gotten a mortgage for a sheriff's sale property?

I would say this is a breakeven deal for $65K. Reason:

65,000 / 100 (100-month rule) + 135 (HOA Fee) = 785 > 750 (rent).

Also Condo appreciates much slower.

However, it also depends on your locality.

skeer27 said:Looking for a little heading check from you guys. This is the first time I am considering being a landlord.

Property Type: Condo 2BR 2Bath 1050ft
Location: Right next to an Air Force Base and a University
Typical Rent in the Area: $750 (possible higher for double occupency)
Association Fees: $135
Taxes: ~$1200 a year

Situation: Sheriff sale is coming up in January. Opening bid is $52,000. The judgement is for $44,000 from the first(and only) mortgage holder. So the property should be up for grabs at the auction. I would not pay more than $65,000
Two liens against the property: mechanics at $5,200 and condo association at $1,400 (which should be wiped out at the auction if I am not mistaken).

My biggest problem is that every bank I talk to wants 20% down and a 3% origination fee + closing costs.

First, do the numbers look sound? I feel they do.
Second, does anybody have any recommendations on how to lower the initial costs? I can cover it, but it leaves me really thin on my emergency fund.

Thanks in advance
Mark

Im thinking about buying a house as a rental property in FL. My father could manage it, so that is not a problem. It seems that houses i am looking at are around 70K, and the going rent for a 3br, 2bath is about 700-750. Is it wiser to buy a house cash, or pull a mortgage and maybe only put down 25-50%? From my math, i would make a little profit after taxes and everything is said and done. Im looking at this as a long term investmetn, and possibly a house I will move to in about 5-10 years.

question for the commercial borrowers/lenders on this site. I am looking at a 6 family residential commercial property. I understand the banks want to calculate the debt service coverage ratio (dscr). The questions is what is the "gross rent" is this the current rents or the rents if all unit were rent.

Question example: 6 units x 1000 = 6K a month and then the vacancy rate against this OR 4 out of 6 units x 1000 = 4K and then the vacancy rate against this.

Planning to buy a property with a friend under "Tenants in common" clause. My friend is planning to live there and it will be my friend's primary residence.
So will we qualify for the mortgage loan as a primary residence? Or does it count as an investment loan?
I have a primary residence on my own.
Also, would we partially/fully eligible for the homebuyers tax credit?

You can have multiple "primary" residential loans concurrently with 1 bank, but bank will want to know why. For instance, my job requires living in state A and B, I am letting my children/parents living in 1 of the houses, or I am buying a new home now and possibly selling the older one soon, etc...

Or you can just get your new mortgage from another bank (ones not holding the note on your current primary residence), that way, possibly less explaining to do. But you still have to have enough income/down to cover.

My current bank does not have a hard cap on how many "primary" residences I can have, as long as I can qualify/afford.

The more verifiable, high quality docs they get from you on the front end, the easier it is for them to package and resell your loan to next bank/institution, and higher the prices.