Posted by Frank in Seattle on November 23, 2001 at 13:39:13:
Q: Your first step is to determine what your purchase is all about? Are you buying the house to live in or as a rental?
A: I want to fix it up/sell it/make money. Investment property all the way. I don’t have the capital to rent, yet. I would never be living in this house, unless it is a stipulation from the bank/lenders. As my mortgage broker says, “There are ways around that.”
Q: what would you think it would cost to bring it up to market or make it a house that is not a house that doesn’t FIT
A: They bought it for about $85,000. I think since they have not done upkeep on it I would buy it for around $90,000. I’d assume about $20,000-$30,000 to fix up. TOPS! Sell it for maybe $10,000 less than market value ($220,000)
Q: if the house only has some cosmetic problems and you have the income and a credit score of 620 or better, you could finance the property with 100% financing.
A: No verifiable income. No down payment. No money. I will be the No money down king, at least on my first one anyway. Broker said it’s not a problem. Not exactly sure on credit score. How would I find this out?
Q: I would lease option it for 6 months, giving me time to do the fix up and repair, and then 100% finance it.
A: Would my mortgage broker be able to do this for me? What if the seller doesn’t want to sell after I do the fix-up?
Q: YOU MAKE YOUR MONEY ON THE BUY
A: I think $120,000 profit is a pretty good buy. Maybe too much. My conscience getting in the way a bit here. Of course after the numbers have been crunched I could re-evaluate the offer.
Q: I read about a purchase contract on another post. Any ideas? I know I wouldn’t make as much, but I’m more after experience than anything.
Thank you for your reply!!