2007-01-16 13:02:48 · 6 answers · asked by AD F 1 in Business & Finance ➔ Renting & Real Estate
You can get 106% financing which includes closing costs; however most likely this not yield any profit for a rental property. If you are financing a flip you still need money for renovations plus mortgage payments. In reality flipping a house takes all cash because most of the homes are in such disrepair they do not qualify for bank financing unless you have equity in another property that you can use to purchase the home. All the flippers I know use the equity lines to purchase the property and renovate. Another tactic to use is to finance (106%) a rental property that breaks even and wait a year or two till the value increases and use that equity to purchase additional properties, the problem is that you will most likely not be able find a good rental property that breaks-even especially with no money down. Good Luck.
2007-01-16 18:27:05 · answer #1 · answered by tianaramal 4 · 0⤊ 0⤋
Need Great Credit!!
Every area is different.
In So. CA, the market hit it's top in the Summer of '05 and is still going down! Many neighborhoods are already down 15%+! Consider that the average sales price in San Diego is appx. $570,000 and you get an average LOSS in value of $85,500 in just about 18Mos!!
The BIG question is will the dropping real estate markets in CA , Vegas, Boston Wash D.C. Fla, N.J., etc. spread to most of the US?
For a real 'insiders' view on this, I would suggest a real eye opener read at:
http://www.brokerforyou.com/brokerforyou
http://www.brokerforyou.com
2007-01-20 06:33:42 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Provided you have good credit, assets and an income, you can qualify for 100% financing of residential properties. If you don't have good credit, assets or income, you may be pushing it a bit. However, you may also be able to convince some homeowners to provide significant assistance, especially in this market.
I would recommend attending or joining some real estate investment clubs. Also, your local mortgage brokers, Realtors and title companies are worth talking to. They should all be MORE than willing to assist you.
Regards,
Joe...
2007-01-16 13:13:03 · answer #3 · answered by Joe K 3 · 0⤊ 0⤋
apply for your financing first, for a 0 down payment program that allows the seller to also pay towards closing costs. If your credit and qualifying is strong, you will have no problem getting approved.
2007-01-16 23:42:57 · answer #4 · answered by Anonymous · 0⤊ 0⤋
yes, with good credit 680+
2007-01-16 14:40:40 · answer #5 · answered by ron d 3 · 0⤊ 0⤋
You either use other people's money or you flip contracts.
Regards
2007-01-16 13:13:53 · answer #6 · answered by Anonymous · 0⤊ 0⤋