Hey guys,
I have come across a short sale situation in a newer, upscale city in California that, like many of the towns that exploded out of nowhere, is now facing a lot of foreclosures.
This is a small town with lots of gated communities and most houses 3 years ago were worth 750k+, probably closer to 1M. There is a nearly new house, 3bed 2 bath, 2 story with a pool thats they are asking for roughly 225k. My estimate is that it probably sold a few years ago for closer to 500 to 600k.
Im only 21 and I'm still in college. I have no experience in this area and I really would like some advice. I would love to buy this house and rent it out. I figure if I could get it for 200k at 6% over 30 years, mortgage will be about 1500, and it could definetley be rented for 2000+.
However, I am worried about is getting approved for the loan. I am in school but I try to work alot, but I only make maybe 3500 per month before tax, but I want to rent the house out anyways. I have a 700+ credit score but I have lots of credit card debt, school loans, and a car loan. I probably have close to 65K in total debts, so i dont know how that will look to the bank. I don't like the fact that I have so much debt, but due to some things out of my control, as well as some irresponsible spending, I am now in some serious debt.
Anyways I was just curious to see what you thought. Not that I think any of you would steal the deal, but I think it may be best to not say the town.
Any input would be appreciated.
I have come across a short sale situation in a newer, upscale city in California that, like many of the towns that exploded out of nowhere, is now facing a lot of foreclosures.
This is a small town with lots of gated communities and most houses 3 years ago were worth 750k+, probably closer to 1M. There is a nearly new house, 3bed 2 bath, 2 story with a pool thats they are asking for roughly 225k. My estimate is that it probably sold a few years ago for closer to 500 to 600k.
Im only 21 and I'm still in college. I have no experience in this area and I really would like some advice. I would love to buy this house and rent it out. I figure if I could get it for 200k at 6% over 30 years, mortgage will be about 1500, and it could definetley be rented for 2000+.
However, I am worried about is getting approved for the loan. I am in school but I try to work alot, but I only make maybe 3500 per month before tax, but I want to rent the house out anyways. I have a 700+ credit score but I have lots of credit card debt, school loans, and a car loan. I probably have close to 65K in total debts, so i dont know how that will look to the bank. I don't like the fact that I have so much debt, but due to some things out of my control, as well as some irresponsible spending, I am now in some serious debt.
Anyways I was just curious to see what you thought. Not that I think any of you would steal the deal, but I think it may be best to not say the town.
Any input would be appreciated.
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