This is just an idea i'm currently tossing around, and we're still working out the details to see if it is actually viable. In the meantime i'd like to get some opinions and see if anybody with a little more life experience could chime in and offer us any advice.
My girlfriend and I were thinking of buying an investment home, The home currently is owned by her grandmother who is moving to ontario at the end of the summer. The place hasn't been appraised in about 10 years (its getting done in the next month). Going off other houses in the area i'm guessing that the house is worth 250,000. The grandmother is having one of her sons (who owns a contracting company in calgary) to do some renovations on the house, this could possibly raise the value to about 300k.
The benefit of this house is that it is directly across from the college down here. Because of this I can pretty much garuntee i'll be able to get renters. Average price of rent in the area is about 500 a month all inclusive. There is a small suite in the basement that the current owner has been renting out, she was telling us today that she literally has somebody knocking on her door every week asking if the suite is available for rent. It isn't even really that large, and it has a small window so it's pretty dark.
My plan was to buy the house, rent out the 4 bedrooms upstairs and share the small suite with my girlfriend. 4 bedrooms at 500$ a pop is 2 grand a month. Currently we pay 700$ a month between us for rent, so I would be putting that money into a fund to cover any unexpected expenses that come up (repairs on the house etc) and ultimately putting the money on the morgage if we don't have another need for it.
utilities come to about 300$ a month for the place, so realistically I should be able to afford up to 1500$ a month for morgage payments without having to pay anything out of my own pocket.
The grandmother is also willing to cosign with us on the morgage, so that might help our credibility a little bit.
the only problem I can forsee right now is that i'd require 100% financing on the house. I'm still going to have to meet up with a morgage broker to discuss my options. What I understand is that they usually go 80/20 with 20% of the loan going at a higher interest rate then the base 80%.
neither me or my girlfriend have much credit. I've got a credit card that i've had for about a year, I usually charge 50-200$ a month on it and pay it off in full every time. I've never had a missed or late payment and i've never paid any interest on it. I make about 2000$ a month working at a hotel and my girlfiriend makes 1200$ at the library.
cliffs:
I am 19, I want to purchase a house on 100% financing from my girlfriends grandmother. The house is directly across from the college, I have 4 rooms I can rent out for 500$ a month each. Renters are pretty much garunteed for 10 months out of the year.
My girlfriend and I were thinking of buying an investment home, The home currently is owned by her grandmother who is moving to ontario at the end of the summer. The place hasn't been appraised in about 10 years (its getting done in the next month). Going off other houses in the area i'm guessing that the house is worth 250,000. The grandmother is having one of her sons (who owns a contracting company in calgary) to do some renovations on the house, this could possibly raise the value to about 300k.
The benefit of this house is that it is directly across from the college down here. Because of this I can pretty much garuntee i'll be able to get renters. Average price of rent in the area is about 500 a month all inclusive. There is a small suite in the basement that the current owner has been renting out, she was telling us today that she literally has somebody knocking on her door every week asking if the suite is available for rent. It isn't even really that large, and it has a small window so it's pretty dark.
My plan was to buy the house, rent out the 4 bedrooms upstairs and share the small suite with my girlfriend. 4 bedrooms at 500$ a pop is 2 grand a month. Currently we pay 700$ a month between us for rent, so I would be putting that money into a fund to cover any unexpected expenses that come up (repairs on the house etc) and ultimately putting the money on the morgage if we don't have another need for it.
utilities come to about 300$ a month for the place, so realistically I should be able to afford up to 1500$ a month for morgage payments without having to pay anything out of my own pocket.
The grandmother is also willing to cosign with us on the morgage, so that might help our credibility a little bit.
the only problem I can forsee right now is that i'd require 100% financing on the house. I'm still going to have to meet up with a morgage broker to discuss my options. What I understand is that they usually go 80/20 with 20% of the loan going at a higher interest rate then the base 80%.
neither me or my girlfriend have much credit. I've got a credit card that i've had for about a year, I usually charge 50-200$ a month on it and pay it off in full every time. I've never had a missed or late payment and i've never paid any interest on it. I make about 2000$ a month working at a hotel and my girlfiriend makes 1200$ at the library.
cliffs:
I am 19, I want to purchase a house on 100% financing from my girlfriends grandmother. The house is directly across from the college, I have 4 rooms I can rent out for 500$ a month each. Renters are pretty much garunteed for 10 months out of the year.