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Options for buying a 2nd rental property.

I am looking to buy a property for rental purposes. I currently own a house in another state that I rent out, it is a FHA loan and due to the drop in house values I owe about the market value of that residence, so I'm not underwater. Also own my primary residence here in CA. I have about 15% equity in my primary residence and it is a VA loan. The rental I'm looking to buy here in Vacaville, CA, is a condo and only about 40k, the rental income would be about 1k, more than covering the cost of the mortgage. I have a FICO of 700, but no money to put down on this new rental. I would really appreciate any help on finding a lender that would work with me. Thanks
John
  • January 19 2013 - Vacaville
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Answers (1)

Hi John,

With no money down this may be a hard road for you on an investment property. Does the condo have a greater value once renovated? If so how much great will the value be? Lets say you have a value of 85k once revovations are completed, but; it will only cost you 15k to do renovations. It's probable you can get a hard money loan and once renovations are completed re-finance to a conventional 70/30 loan and pay off the purchase debt and renovation cost. This is just one plan that's possible.

Best regards,
  • January 19 2013
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