Author Topic: Bite off more than you can chew?  (Read 1585 times)

k-vette

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Bite off more than you can chew?
« on: May 24, 2017, 10:14:42 PM »
I received a targeted postcard with a home listed for sale in my town.  Targeted because they clearly found one of my hobbies (aviation) and sent a listing for a home for sale on the airport.

It's a dream home.  House is really too big, has a pool I don't need, but the acreage is just right, there's a 2nd 1100 as ft home on the property, and a private hangar.  It's absolutely facepunch amazing.

It's 1M. 

I don't have 1M.

Realistically I have 100k in equity in my current home.  No way I could afford the payment on a place like this....  Or could I?

The small house is roughly the same size as our current home.  Rather than living in a huge home, I'd rather rent out the large home.  Based on the fact that it's on the airport more or less, it might even make for a fancy weekend getaway and do well as a vacation rental.

The house also has it's own hangar - the airport hangars are all full, so I know it could be rented out easily.  (I personally know people looking)

So between the large home and a hangar I could realistically see those taking care of their share of monthly payments, while providing a home to live in as well.  As a plus, I work next to the airport.  Commute time would be a 30 second bike ride or a 5 minute walk.

In short - I'm curious if there are ways to get a loan on something like this - my own cash flow would not get approved, somehow the potential rental income would have to cover the difference. 

Amy answers on non-traditional home loans for this type if rental/home purchase?  It's a long shot, but it never hurts to ask!

waltworks

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Re: Bite off more than you can chew?
« Reply #1 on: May 24, 2017, 10:20:55 PM »
A traditional mortgage lender won't give you a mortgage based on hypothetical rental income, in general, unless you have a history of rental properties/income already established. So that's probably out.

You might be able to get a portfolio loan (if you have a high NW/lots of investments but not much liquid cash) or look at a private investor/personal loan. But those are A) long shots and B) expensive as *uck because of the risk involved for the investor. Fanny and Freddy don't buy that paper.

What would the main house+hanger actually rent for? Any reason you couldn't just rent a place near the airport instead? The place almost certainly makes no sense financially.

-W

Vindicated

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Re: Bite off more than you can chew?
« Reply #2 on: May 25, 2017, 11:59:44 AM »
Why not keep an eye on it, and contact whoever eventually buys it, then make them an offer on the smaller house.

k-vette

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Re: Bite off more than you can chew?
« Reply #3 on: May 25, 2017, 09:22:51 PM »
Why not keep an eye on it, and contact whoever eventually buys it, then make them an offer on the smaller house.

I like that idea.  :)  Who knows, perhaps the current seller would split off the property.  Sure seems like they would get more that way.