Posted 03 September 2004 - 01:27 PM
Posted 03 September 2004 - 02:22 PM
If you want the larger property, but lack the down payment, getting your seller to carry a second position mortgage on the property is the key.
Assuming that you have $40,000 for down payment, and that the property is being sold for $800,000, you would need $160,000 for a 20% down payment, but if you can convince the seller to agree to carry a 2nd in the amount of $120,000, the lender might agree to the deal as this would bring the loan to an acceptable loan-to-value.
Of course, the cash flow has to pay for the combined debt service.
Regarding the appreciation question, I wouldn’t know but in my market there is a healthy demand for multi-family properties.
Posted 04 September 2004 - 04:02 PM
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