Second Investment Property - Posted by Tony McGann

Posted by Tonester on June 29, 2001 at 07:15:59:

What do you mean by deed it to me?
Please treat me like the neophyte I am.
T.

Second Investment Property - Posted by Tony McGann

Posted by Tony McGann on June 28, 2001 at 10:27:43:

I recently purchased a farm house on 11 acres on the ocean in Canada that was in desparate need of repair. It’s now been completely renovated.

The acreage is subdividable into 3 lots one including my house. I estimate the value of the ocean front lots to be about 65K, 35K and the house lot 175K for a total of over 250K. My current mortgage is $190K. The subdivision has not taken place yet so this might be a problem.

I am now interested in an investment property that is selling for $139K privately. I’d eventually like to rent this property out and estimate that it could rent for $1100-1200 per month plus utils (paid by tenant). PITI payment would be around $800 with 15% down.

Banking and Mortgage restictions in Canada require that I put 15% down minimunm to secure a mortgage.

Should I use equity in current home as dpmt? Does the deal on the house seem sound?

Tonester

Re: Second Investment Property - Posted by Angel Gutierrez

Posted by Angel Gutierrez on June 28, 2001 at 14:26:15:

Dear Mr. Tonester,
You’ve got an opportunity for an exchange in front of you. Exchanges/trades are my favorite, by the way. This type of deal-making is my trademark/specialty. Two months ago, I got a free Mercedes and twenty grand for a house I paid 8500 bucks for.
Since I don’t have any info on this situation, see if the seller will take a free and clear ocean-view lot as a BIG down-payment for the house? Are you with me? If he doesn’t really need the cash and is reasonable , schmooze him/her over(everyone likes ocean-view) and see what you can do. If no…then sell the lot on the open market while it’s being subdivided. Get the picture?
Some food for thought.
Let me know what happens.

Angel
Dallas, Tx

Re: Second Investment Property - Posted by Tonester

Posted by Tonester on June 28, 2001 at 14:34:36:

Hmmm that’s a good point. I’d really like to keep the lots for a few years though if I can so therefore the equity loan. I expect the lots to really appreciate over the next few years. They’re actually ocean frontage lots.

The other problem in this situation is that the seller is moving far away and will likely not want the lot.

Any other suggestions ??

Thanks again.

T.

Re: Second Investment Property - Posted by Angel Gutierrez

Posted by Angel Gutierrez on June 28, 2001 at 15:18:02:

Aahh…motivation…he he he. Read my post above!
Mr. Tonester…This is a game of chess. If the seller is becoming more and more motivated everyday, then visit with him every other day. When the time comes to move, and it will, he might just deed the thing to you! It’s happened to me! Eventually, you’ll be the only one standing there at moveout!
Now…don’t you dare get emotionally attached to the outcome on this one, you’ll lose! Trust me.

Angel
Dallas, Tx