Realty Times journalist Kenneth Harney discusses how one couple decided to purchase an owner occupied multi-unit property using the new HECM for purchase program.
Harney describes a married couple in their early seventies who is planning to downsize from their long-time home in Reno, which they sold late last year for about $850,000. Now, they’re looking at a $500,000 tri-plex, with the idea of living in one unit, and renting out the other two for about $1,300 a month each.
Harry Gordon, a reverse mortgage specialist with Lake Tahoe Mortgage in Reno, Nevada told Realty Times that the property would have sold for about $750,000 at the peak of the boom, so the buyers are getting an excellent price for the property.
Since the couple would use the HECM for purchase program to buy the property, they wouldn’t have to make any monthly payments and could generate $2,600 a month in rent that Gordon says is realistic and attainable under current market conditions.