I have been reading a lot on bigger pockets. I am looking at a bank owned property in a good neighborhood and in good school district here in Mandeville.

It needs very little interior work, but a good amount of exterior. I used to build spec homes but did all financing through Resource Bank.

I have been looking at the Fannie Mae homestyle renovation loan to finance it. Is this something that any lender can offer?

Anyone familiar with this type of loan?

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Posted by Mr.Perfect

Louisiana

Member since Mar 2013

17438 posts

Posted on 11/18/15 at 8:23 am to mandevilletiger34

Before talking about the loan, have you done the math on ROI?

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Posted by mandevilletiger34

Member since Dec 2010

863 posts

Posted on 11/18/15 at 8:52 am to Mr.Perfect

I have done a bunch of calculations and I am very familiar with the market in the area.
I have seen the 70% rule, and think I can offer pretty close to this and have about 50k in instant equity after repairs.

I anticipate about 800/month cash flow

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Posted by jdutto3

Atlanta

Member since Dec 2006

672 posts

Posted on 11/18/15 at 12:39 pm to mandevilletiger34

Mandevilletiger34,

I do not personally have any experience with this type of loan but please post updates once you talk with someone from FM or another bank.

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Posted by Fat Bastard

coach, investor, gambler

Member since Mar 2009

72623 posts

Posted on 11/18/15 at 12:54 pm to mandevilletiger34

quote:
I anticipate about 800/month cash flow

POSITIVE cash flow? Or just what it will rent for without factoring in PITI and maintenance?

I can see that IF this was a CASH BUY ONLY. Is it a cash buy?

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Posted by mandevilletiger34

Member since Dec 2010

863 posts

Posted on 11/18/15 at 3:19 pm to Fat Bastard

This would be positive cash flow after all monthly costs

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