Gerald was living in an inexpensive rental paying $500 per month on the 3rd floor of a 3 family home. The owner worked out a deal with him to do small maintenance work, shovel the walks during the winter and collect the rents for him.
The owner mention to Gerald that he was planning on selling in the near future and said why don’t you buy it? It never occurred to him, but said he would think about it. A couple of years earlier I did a mortgage for his parents, so they recommended he call me. The credit was good, had a sufficient down payment, so if the purchase price made sense, he qualified.
Gerald and the owner came to an agreement and the transaction worked like this. The purchase price was $155,000 the seller would pay $5,000 toward closing costs. They had an attorney put a purchase agreement together.
The transaction worked as follows: Mortgage amount $152,192 which meant $5,425 down. The complete monthly payment was $1,314. OK, here is the best part. Rent for apartment 1) was $950, rent for apartment 2) was $850. This is what you call being in the right place at the right time.
