U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 10-22-2011, 05:19 AM
 
68 posts, read 165,424 times
Reputation: 24

Advertisements

i am looking to invest in a house to rent out . The problem is i declared bankruptcy 3 yrs ago . but my wife has a 750 credit rating score with no negative info on her credit rating . but doesn't show enough income to purchase a home . I wanted to buy a home around $130,000 to rent out . I have $50,000 to put down . Which is about 38% . I own a home with only about $20k equity . Do i have any possibility of getting financing ?
Reply With Quote Quick reply to this message

 
Old 10-22-2011, 07:20 AM
 
28,383 posts, read 67,903,744 times
Reputation: 18188
While the cash-on-hand is a huge plus for a nigh downpayment in the current environment I do not think you will have an easy time of finding a source to lend the additional funds. Even if you did not have the negative of a bankruptcy the tough environment for renters means that there is huge risk that younwill not have the cash to stay current on such a deal...

Maybe you could find a cheaper place that you can buy outright and then try to do a cash-out type finance down the road...
Reply With Quote Quick reply to this message
 
Old 10-22-2011, 11:03 AM
 
68 posts, read 165,424 times
Reputation: 24
well my plan is in 10 yrs hopefully my present house will appreciate and pay off my rental then move in the rental and sell my current house for a mortgage free house .
Reply With Quote Quick reply to this message
 
Old 10-22-2011, 04:53 PM
 
Location: Lexington, SC
4,281 posts, read 10,284,194 times
Reputation: 3700
Quote:
Originally Posted by watchdaride View Post
well my plan is in 10 yrs hopefully my present house will appreciate and pay off my rental then move in the rental and sell my current house for a mortgage free house .
What makes me think that this guy is all hat, no cattle?

I have a BIL. All ideas and not a pot to pee in.
Reply With Quote Quick reply to this message
 
Old 10-22-2011, 06:37 PM
 
Location: Kailua Kona, HI
3,199 posts, read 10,959,643 times
Reputation: 3378
The best thing you can do is talk to 2 or 3 mortgage brokers to see what type of loan you might qualify for. (which i imagine, is not much) If you were wanting to b uy a home to live in you might get a higher than market interest rate on a 30 year mortgage with 20 or 30% down, but as an investment, not likely. your mileage may vary however so go ahead and talk to a professional in the lending industry who can actually run your numbers and give you an accurate answer.
Reply With Quote Quick reply to this message
 
Old 10-22-2011, 07:04 PM
 
Location: In a state of mind
5,998 posts, read 6,357,816 times
Reputation: 11253
Quote:
Originally Posted by watchdaride View Post
i am looking to invest in a house to rent out . Do i have any possibility of getting financing ?
Probably not. I have 1.5 mil in cash, a 3.5 mil house and a bunch of other units, with a net family income in the mid to upper 5% nearly the 1% category - and I can't get a loan, because we are "self-employed."

Previously I couldn't get a loan other than hard money because I worked for our corporation as an employee and got paid a minimal amount to reduce personal taxes - so even though the corporation had lots of money - the banks want the loans personally guaranteed by a principal, who doesn't earn enough to borrow $400K or whatever. So either way you are screwed.

The banks will ONLY loan money to traditionally employed people with very high credit scores and the score and income has to be the same person. This is great for a sr. systems programmer at Boeing, but almost nobody else can get money, at least not at low rates.

You can get 14% hard money and close in a week.

SUGGESTION: Buy a house for under 50K cash, use your credit cards or fix up from cash flow. The income should help your future borrowing. The credit HAS to loosen up or there will be no economic future for this country. When it does loosen then you can hopefully re-fi and get cash for more investment properties. Also maybe by then you will have a "regular" job and better credit and be loanable.

It is also highly possible that 2008 was the peak worldwide, that there will NOT be another widespread appreciation cycle in our lifetime. There will be an additional billion people on the planet in 12-14 years. They have to live somewhere, but 99% of them are very low income and not in the US.
Reply With Quote Quick reply to this message
 
Old 10-23-2011, 10:21 AM
 
Location: Columbia, SC
8,844 posts, read 17,437,561 times
Reputation: 6194
Talk to a lender. That's the best way to find out.
Reply With Quote Quick reply to this message
 
Old 10-24-2011, 12:20 PM
 
Location: Phoenix, AZ > Raleigh, NC
14,297 posts, read 17,491,099 times
Reputation: 22118
Here's my suggestion: don't talk to a lender or go any further with this plan. Take that down payment and put some aside for an emergency fund, invest in your 401K if there's an employer match, and start a Roth IRA. Maybe pay down the mortgage you already have and make extra payments towards principle. You'll end up with more money in YOUR pocket without the risk and cost of more debt.
Reply With Quote Quick reply to this message
 
Old 10-25-2011, 03:31 AM
 
68 posts, read 165,424 times
Reputation: 24
after 5 yrs of pent up demand once bank credit loosens up i think the market will appreciate quickly . My god the prices of housing in florida is down 60% from highs . I bought my house in 2003 for $200 k and its now worth $170 . buy low sell high .
Reply With Quote Quick reply to this message
 
Old 10-25-2011, 06:52 AM
 
Location: The Triad (NC)
26,837 posts, read 57,830,396 times
Reputation: 29215
Quote:
Originally Posted by watchdaride View Post
...once bank credit loosens up I think the market will appreciate quickly ...
the prices of housing in Florida is down 60% from highs .
That's the supply end.
But you still have to discount those high's by 30-40%.

At the demand end it's still about affordability...
and that means stable incomes of sufficient amounts to:
1) commit to mortgages at all
2) support a price at 2-2.5X median income...
where that resembles even the 2000 price levels.

It'll be a while yet.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top