Almost 30, poor credit, but just starting to do better financially.  I'm just sick of throwing my money away on rent, not having the space I need, etc.  I've lived in shadey hoods before, but did suffer some of the consequences, i.e. theft, etc.  The cheapest houses in decent areas are 250K+, but I've found several fixer uppers in less desireable areas for less than 100K.  I'm not even sure if I could get a mortgage, or a fair rate.  Seems to me that even if I paid a higher rate, if I found one, the payment would probably be comparable to my rent, but with equity.  Does this sound right?  Am I a fool to want to buy a run down house in a shady place?  It does help that I am a contractor, and could make all of the improvements on my own.  I'd love to hear what someone has to say.
133619
Sounds good to me. Start talking to a bank or a reputable mortgage broker. Let them tell you how much they will finance and put down as little as possible. Keep looking for a house. Remember location is very important. Keep an eye on the neighborhood you are looking for a house and see how long it takes for a house to be sold. Also find out from a Realtor, how much the house price has gone up since last year on average. When people look at the house, they estimate the fair value based on square footage. In that sense, fixer-upper with larger square footage than typical neighbor houses would be a good one. Cul-de-sac is also  nice. Avoid houses on busy street. \n\nKitchen and bathroom remodeling is a must. A hard wood floor in even one room make it an upgrade. Estimate the material cost and add it to the house cost. That what you need to sell the house for to get the money back. Extra will be your profit. See if that's a reasonable expectation. Also don't forget, when you sell the house let's say in a year or two, you need to pay 6 % (more or less) to a Realtor unless you sell without one (which may be difficult). So, you need to add that to your cost, too. Good Luck.
20992
Yes you can. In this instance I would suggest finding someone in your area who buys properties for rental purposes. See if they will talk to you about how they purchase propery. There are a few who constantly buy property with little out of pocket capital. There are also books by Robert Kyosocki, and Cources by Carleton Sheets that do work that can teach you how to do this. \n\nYou can even find small trailer park communities in your area. and purchase them for $1,000 to $6,000 clean them up and resell them at double the price and offer financing with 10% interestes for couples trying to find the first home. you can quickly flip several of these and creat a significent down payment for a home of your choice and just use a bit of "Sweat equity".
28661
That is the auction starting price...  All forclosed homes go to auction, and who knows, you may get lucky.  I bought two houses on forclosure in Los Angeles a few years ago and, miraculously, no one showed up to bid against me.  I got the two properties, which were side by side, in a prime area of Los Angeles, and the upside was about $400,000.\n\nSo step one is to look at home prices in your area and see what a four bedroom/ four bath is going for.  A good place to get a good feel is realtor.com because you can take a look at properties in your area and very easily see what they're going for.  Then look at the property itself, the bank that's selling will be honest so look for things like structural damage and asbestos and factor in the cost of repairs (add it to your purchase price).\n\nNow, when it comes to making a purchasing decision, you need to make an accurate assessment of what you want to be in it for.  If it's a great deal, you could probably buy it, manage it and make money not only when the property goes up in value and by building equity, but also on the month to month cashflow... this is the best way to make money over the long haul (and is how many real estate moguls built the cornerstone of thier billions).  However, managing properties is lots of headaches and requires that you be available 24/7 in case of emergencies.  Now, if managing isn't your thing, if it's a good enough deal, you can always flip it.  Flipping is more risky because you have transactional expenses and there's no guarantee your going to sell, so look at your local market and see if properties are being bought and sold at a steady pace.  The last the you want to do is to hold on to something that's costing you every month, but isn't bringing any money in.  You also don't want to manage the property if manging isn't your thing (of course, you can always turn to a management company, but it'll cost you about 5% of your gross, you'd still pay all the expenses, and you won't be able to manage costs as well, making positive cash flow less likely).\n\nSo look at the numbers and decide what you want.  I'm a buy and hold kind of guy, you might be more inclined to flip.  So, make a million or two.  If you can manage positive cash flow right out the door, closing one a month over the course of a year (even at $20k a pop) will probably make you a millionaire in 5 to 10 years if you leverage your equity.  Good luck.
437285
Welcome to the great world of being a landlord. Amazes you what people are capable of, no? I've been a landlord for 20 years and figure I'm batting about .950 which, as you now know, is excellent.\nSounds to me like you are up shit creek without a paddle. You can't get blood out of a turnip, so the only thing you can do is pick up the pieces and move forward. Don't know about the rental market where you are but "Section 8" folks can go either way. Good deal or bad deal. Sounds like you got the latter. Bummer. Round up a friend or two, buy a case of neer and a couple pizzas and get in there and clean it up. Yes it sucks. Yes, your tenant should have done it. Add this to your long list of Landlord Things to Get Over. Take the bucks from housing assistance and do the repairs you can. Your house will be worth WAY more if you decide to sell with doing as much as you can, rather than as-is. Trust me the effort will pay off in spades. Now, tell yourself this: Everyone should be so fortunate to have these problems. I know this sounds wierd, but you are wealthy enough to have a spare house you don't even live in. 80% of the world is just trying to get enough to eat today. I know, its hard to see it that way, but I've learned never to bitch about my rentals, as everyone should be so lucky.\nSo get over the shock and anger, get a broom and GET IN THERE. \nShould you decide to be a landlord again, there are a number of really good books out there. Number one consideration of all is who you put in your house. You learned it the hard way.\nSincere good luck. HB
515162
That's hard to say.  You haven't indicated if they are fixers or just distressed sellers.\n\nIf this is a rehab, I would probably pass.  People at that level have an expectation of what they will get when they spend that much money.  There isn't alot of room in there for error and when you are doing a rehab, you just never know what you are going to uncover.\n\nYou also have to keep in mind the holding and marketing/closing costs (typically 15%), so you can see the risk reward isn't really there.  Are you having to get a new mortgage for this?  That is going to cut into that equity a bit if you are 100% NOO financing.\n\nAs a real estate investor on homes like that, I always look at the "great deals" comment and know that if it were truly a great deal, it wouldn't be on the market for as long as it probably has been.\n\nHomes at that price level have alot of swing price wise, so at the end of the day you may be paying retail.  But since there is some play in the price, come at it $150K under that.  That is approximately 70% of retail and then you have a deal that you have many options in how to make money from the transaction from.\n\nKnow your criteria when you are doing real estate investing:  know what is a deal and what isn't.  Study your neighborhoods and pricing.  \n\nBottom line, you can make that much on lesser priced houses without as great a risk.
322445
You really need to decide how long you are going to be there.  If it is not very long I wouldn't buy.  Think about it.  Buying means getting a loan, paying points and closing costs, home repairs and maintenance, property taxes etc.  Also it depends a lot on housing prices in that area.  Are they trending up or down in price?  Hopefully up, but if not you could acutally lose money.  Buying is not always the best option.  Do a lot of homework on this one, talk to some realtors about the housing market in your area etc.
562733
I will preface my answer by stating that I am a licensed Realtor® in the state of Arizona.\n\nIt sounds to me like you have your act together even for a person of your age. I commend you for your way of thinking.  \n\nPersonally if it was I and I could make the financing and the payments work I would buy now and start building some equity.  Between the amount you will pay down on the principal on your loan (it won’t be much at first) and the appreciation of the value of your property, you will be able to move into something higher in value in the future.  \n\nI don’t like to get into financing so much as I don’t have the training for it, if you find yourself a good Realtor® and/or lender. They will be able to guide you through the process of getting financing as well as finding the right home for you. \n\nGood luck in your search for your home\n\nP.S.: If your lease is up in October, you will need to get going on the process now, as it usually takes about a month to go through all of the inspections and closing.
623265
10 million people in NYC.  At least 10,000 of them have the Carlton Sheets tapes and are pursuing the same homes as you would be..\n\nEven the most undesirable areas in NYC are going to be prime targets for flip transactions.  NYC is an expensive real estate market to cut your teeth.  \n\nYour best bet are smaller college towns where the real estate market is more affordable and there are a lot of tenants who can rent if the market tanks before you can sell for a profit.\n\nMost investors who live in large cities prefer to invest in these smaller towns.  However, they do not have the stomach to deal with tenants.  They  want turn-key investment properties (in other words, they do not want to invest a lot of time or money to fix up bad homes) and great management companies.  If you are willing to do the dirty work to renovate the properties, it may be worth $5K to $10K beyond the cost of the repairs.  If the home is $500,000 this premium is only 1 or 2 % of the price to an investor who doesn't want to get dirty.  If the home is $100,000 this is 5 to 10% of the price, which is a nice return.\n\nMy advice:  find a nice college town with a pretty vibrant real estate market.  Buy an older home, modernize, renovate, fill up with paying tenants, and sell for 25% to 50% more than you paid.  Net after repair costs should be 10 to 20%.\n\nStay away from NYC unless you have a lot of $$$ to lose!
58640
1- You are looking at a rate of 6.25% in IL. I ran it through Provident Funding as a 30yr fixed, full doc, 80% LTV/CLTV, second home, $288,000 loan amount, with a 21 day lock period. This assumes all the information you supplied is accurate, and that your DTI (debt to income) does not go above 50%.\n\nThat is a rate that the mortgage company would be ok with selling you. If you are being quoted higher than that, then feel free to talk to me and I will let you know if you are getting a fair deal or not.\n\n2- Your Mortgage company can usually get you at least as good of rates as your local bank, unles you typically carry a very high ballance with them. You would be surprised ... you Mortgage Company is propbably signed up with your bank to do loan through their wholesale side, as opposed to your retail rates they would offer you direct.\n\n3- When a good time to go through with it is completely up to you. If you are in a situation where you can offord it, and are comfortable with it, then do it now. No one can make that decision but you.
488184
You say you're behind on your bills and you don't mention rent so, am i safe in assuming you own your home outright?\n\nIf this is the case you can speak with your bank and remortgage. There will be some conditions, as it appears neither of you are currently generating an income. If you are working (Even part time), this will make getting the refinance, a great deal easier. \nUtilities companies are more flexible than most people realise. You can make payments on a regular basis, to repay outstanding amounts.\nLoan companies are less understanding as they make their money through interest, not the supply of goods or services. So if you owe money to a loan company you should look at using the equity in your home to group ALL debts into one loan (this can often save thousands of dollars). You may find that after you do your figures it may work out better for you whether you needed to do it or not.\n\nIf you don't own your home. There is not a lot that can be done other than approaching charaties or Gov't assist of some type.
44762
With your situation you're working with an investment property and will take a hit on rate because it's not your primary residence.  But the rates that are available to you depend on your credit score, how much equity you have, mortgage payment history, and how much debt compared to income that you have.  \n\nI work for a company called MYLOAN and our rates are very competitive and service is top notch.  If you'd like a free no obligation consultation you can fill out an application on my website, email me, or give me a call.  I wish you luck in your search for financing.
514421
yes, there are a few options you have with a credit score like that.  Also, depending on the price of the house you would like to buy, the interest rates can be fair, in the range of 6.25%~7.5% if you decided to go with an FHA loan.  If your debt is high, then you might be looking at a sub-prime loan where the interest rates begin in at about 8.5%+. any questions, you can email me
650042
All I can say is shop around-get quotes from as many different lenders as you can because there are so many bad deals out there right now that some lenders will promise the sun moon and stars for your business. Don't use a fly-by-night place you never heard of-seek out ones that have reputations. Ask around and get recs from friends who have refi-ed even if it was on a house.
273007
BUYING IS ALWAYS BETTER!  People that rent are making landlords rich, and I thank my tenants for that.  If you were to buy a condo in an area of good appreciation, you have equity in the home whether you are ready to settle down or not.  You are putting money into your own walls as opposed to a landlords pocket, whose mortgage YOU pay when you rent.  I know people that are 20 years old buying real estate because they have educated themselves on this subject.  There are many tools out there for first time home buyers with little or no money to put down.  Research buying or put someone Else's' kids through college.
39178
Actually, I think there are a few points to this question. First, what did YOU do to prequalify them to purchase the house in the first place?  Many LO landlords really don't care if the renter ever buys, they keep the LO money and either let the tennants go month to month, or let them move on.  So, assuming you want to sell the house, do a better job upfront of finding tennant buyers.  Pre qualify them.  1. Do they have all of the option consideration money upfront, with no payments (this means they have a lump sum or were able to save the money).  2. Does their current employment make it so they are able to make the payments on the house comfortably.  You can look at their income, and their outgo, and compare it like a lender does (that is what I do).  THey should not spend over 41% of their monthly income for, all items on the credit report, monthly payments, the principle and interest and taxes and insurance on the house. IF it is obvious they will be short...you probably want to look for the next buyer. But finally, if they will be renters until they exercise their option contract, do a smart upfront check on them as renters. First, do a criminal check on them, if they pass that, then look into the other items such as credit and references. If you find someone you like, then go to their neighborhood, drive it, and then call and ask if you can stop in.  If they are happy to let you come see them in their current home, you will get a feel for  how well they are going to take care of your property.  Due Diligence is important. Im not a lawyer, and if any of this info is wrong, it is simply my opinion.
9911
If you don't have much of a credit background (I mean no credit as opposed to "bad" credit), a lender will look mostly at your earning power.  That is to say your current income, how long you have had your current job (at least 1 year), and how much of your current income is disposable (how much extra you have after your current bills).  Whatever you have left over is what you can afford for a house.  \n\nI have to say though, that without any real credit history, your chances of getting a loan are low.  Also, be very careful of those who are willing to lend you money, because it will probably be at much higher interest rates, making it all the more likely you won't be able to afford the payments.\n\nFocus on building good credit.  Once that is done, then you can start thinking about buying a home.
608545
Above comment about balloon payment is a good one; personally had a mortgage that seemed too good to be true, until we were signing the huge pile of papers and found one that mentioned the balloon payment -- under the terms, after 15 years, we would have paid down almost none of the original loan!\n\nThere are conditions under which this isn't necessarily a bad deal, but it involves a lot of financial discipline, and your mortgage lender probably won't help you figure it out.\n\nA bigger concern at this point is simply this: interest rates are going up, and the housing market is slowing down. You may get a mortgage you can afford for five years, but can you afford it if the rate adjusts to, say, 10% in five years and you can't find a buyer for your house who will pay what you still owe?\n\nFinally, how much are you paying in points/fees on that loan -- and is it more overall than you'd pay on interest for, say, a fixed 30-yr loan at a reasonable interest rate with no points/fees?