The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: k-vette on May 24, 2017, 10:14:42 PM
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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!
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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
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Why not keep an eye on it, and contact whoever eventually buys it, then make them an offer on the smaller house.
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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.