Financing a second investment property - Posted by Steve Mirack
Posted by Steve Mirack on December 10, 1998 at 10:01:30:
I live in a historic district and have restored 2 homes, our primary residence and a rental property. The first was bought in 95 for 139K and is currently valued at over 210K. I had to invest approx. 15K and alot of sweat equity. The second property was purchased in 4/98 for 100K and is currently valued at over 160K. We invested 20K and it was my full time job to renovate it. At the time of purchase, we had a few bucks, so we put 20% down + closing costs. Our note is for 15 years at 7% which comes out to 1K/month(includes escrow)and is currently rented for $1200/month.
Our dilemma. We put a contract on another property for 118K. It appraises for over 138K. I would like to work on this property full time and flip it. We have alot of equity, but no cash. I strongly feel the property will appraise at over 190K when finished. (the neighbors house is identical, but much nicer, and was purchased for over 200k a few years ago) My wife works full time.