JayMedina
07-12-2005, 03:53 AM
Hi Everyone!
It's been a while since I posted, so please forgive the long absence. I've been hard at work, and even secured my first investment property using OPM. I made some money on the deal, and looking to cash out nicely in a year or two, and put no money of my own into the deal. Not too shabby for my book.
I have a question. There is a property that the seller is fairly motivated to sell. Here are the numbers:
Asking: $212,500
FMV: $220 to $230
This home is looking like it will appreciate to $240 to $250 in about a year to two years. This is based on current performance, comps, and some speculation due to the fact that this area is already in demand and higher end builders are in the area raising sales comps.
It is a single family home that is being rented. Problem is, rental market in the Austin area blows. The house currently has a renter for $1200 a month.
Is there a creative way to acquire this home? I have no cash or credit, but I was thinking of a purchase money first at 80% of appraised value and going with a seller carryback second. Would this work with a traditional lender?
How about a lease-purchase? The renters are just renting and may want to buy the home at a later time, but don't have a purchase contract as of yet. If I can secure the home now, and get the contract for the FMV, I'll be set. Or if I can acquire the home, and sell it outright in my target timeframe, I should be able to cash out the current seller and make my profit.
Any ideas? Oh, and if I can write off any losses on cashflow, I may be able to sustain a bit of negative cash flow if I get it back in taxes at the end of the year.
At this point I'm buying with the mindset of cashing out in a year or two, and willing to take a minimal hit monthly if it will mean true profit in a short amount of time.
Thank you in advance. Oh, and please go easy on me, as I am just learning this business. Thanks, Family!
Best Regards,
-Jay aka "Big Sarge"
It's been a while since I posted, so please forgive the long absence. I've been hard at work, and even secured my first investment property using OPM. I made some money on the deal, and looking to cash out nicely in a year or two, and put no money of my own into the deal. Not too shabby for my book.
I have a question. There is a property that the seller is fairly motivated to sell. Here are the numbers:
Asking: $212,500
FMV: $220 to $230
This home is looking like it will appreciate to $240 to $250 in about a year to two years. This is based on current performance, comps, and some speculation due to the fact that this area is already in demand and higher end builders are in the area raising sales comps.
It is a single family home that is being rented. Problem is, rental market in the Austin area blows. The house currently has a renter for $1200 a month.
Is there a creative way to acquire this home? I have no cash or credit, but I was thinking of a purchase money first at 80% of appraised value and going with a seller carryback second. Would this work with a traditional lender?
How about a lease-purchase? The renters are just renting and may want to buy the home at a later time, but don't have a purchase contract as of yet. If I can secure the home now, and get the contract for the FMV, I'll be set. Or if I can acquire the home, and sell it outright in my target timeframe, I should be able to cash out the current seller and make my profit.
Any ideas? Oh, and if I can write off any losses on cashflow, I may be able to sustain a bit of negative cash flow if I get it back in taxes at the end of the year.
At this point I'm buying with the mindset of cashing out in a year or two, and willing to take a minimal hit monthly if it will mean true profit in a short amount of time.
Thank you in advance. Oh, and please go easy on me, as I am just learning this business. Thanks, Family!
Best Regards,
-Jay aka "Big Sarge"