#1- Currently a 2 or 3 family. Will sell for $35K. Needs about $12K worth of rehab work. Overlooks the big river. About 2/3 acre. No garage. Parking for 2 spaces.
#2- Was used as a 6 family. You could stay in half of it and rent out the other half. Will sell for $32,500. Place needs about $45K worth of work. That might be too much for you in rehab... I don't know. You could spend about $5000 in rehab to be able to move into it, and then work on the other stuff little by little...
The 2 family we could do owner financing, after you put down about 10%.
The larger one- I would need $15K in cash and could do all the rest owner-financed.
BOTH of these are on town water and sewer, and in decent neighborhoods. If you're interested further, please email me for details. Thanks, and good luck,
If you structure this properly, it would seem like you have a wonderful opportunity which you can take advantage of.
Explain to the owner that you will try to sell your current home as soon as you are nearly finished repairs on her home.
She may convey ownership of the new home immediately with a small downpayment if she knows that she may be getting a lump as soon as you sell your current home.
Also, ask her if you can start making payments in six or so months. This will give you some time to make the necessary repairs without having any new payments other than taxes and insurance on the new property.
If you've owned your current home and lived there for five consecutive years out of the last eight years, you will be entitled to $6000 from the IRS ( the maximum credit is $6500 but in your case it would be only $6,000 because you only get up to 10% of the purchase price of your home) after you close on the home. Speak to your tax professional about this.
You can use this money to pay her back some of the money she financed for you. Hopefully you will get a decent amount of money for your current home and use that as well to pay her back.
When you are done, you will hopefully be left with a small balance to pay the owner off.
I don't think it should be too hard to pull this off. Please keep us informed with your decision and let us know how it works out.
Hope this was helpful.
As for the house you would like to buy; have you had a building inspection so you have a clear idea of just how much work is needed? Again, an agent can help and advise you on this purchase.
If you can sell your current property you could either 1 try to sell and buy with the proceeds. 2 get a equity loan and use it to buy the new place 3 ask for owner financing and see if she will do that with something as collateral you own.
Be aware that you might be able to rent your current property. You might not. Do not get in over your head with debt. If you can get an equity loan only get a FIXED rate loan.