This is the Scenario:
I have a studio condo listed - it is only $54,800. The HOA fees of $155 (which is average for Mesquite, Nv) cover all utilities except cable and phone. They currently rent for $550 or more per month. Pool, spa close to casinos and stores. (This is not an ad, you can see the ad on the above link.)
Good deal for a single person - nothing else to buy under $100,000 here! Easy to rent, everything else here rents for over $600 plus utilities. Good deal for a renter, good deal for a lower income buyer.
Does this sound like a good deal for an investor to you? Apparently it is, many were sold to investors in the past few years. Quite a few were cash sales. Many are rented by the month, some are used as a vacation home and some rented seasonally to snowbirds. Very few unwanted vacancies - Not that many for sale, either.
This is the Problem:
I have a buyer with excellent credit, enough verified income to qualify, and just enough cash to put 20% down and pay his closing costs. I can't find him a loan!
Four different lenders told me today that they are not allowed to do a loan for condos in this subdivision any more because the investor ratio is too high. They are a "no warranty home - disallowed". Sorry! So I have a perfect buyer who can't afford anything else and I can't find him a loan.
I am not worried about the seller, we will get a cash buyer eventually, but what about my buyer? I know $$$ is not growing on trees right now, but he is counting on me! Got any money?