I have a new customer who was looking for investment properties in the Morristown area.  I showed them all of the two families in that area and we found a fully rented short sale that has positive cash flow after paying the mortgage and taxes.  We looked at the property twice, once at night and then again in the day. 

We presented an offer today, and the indication from was that it was sufficient for the bank.  We are waiting for the final approval.  They required that the buyers get pre-qualified for a mortgage by Countrywide and they are looking at a 7 3/8% rate with 20% down.  The rate is high because they are not planning on using it as a primary residence.  Our local Weichert mortgage specialist indicated that now you need to put 25% down to get a favorable rate on a multi-family home.

With the property in Westfield that we are negotiating on, we have narrowed the gap very signigicantly.  Unfortunately at this time, my customers are focused on getting ready for a trip to Asia and I have to wait 10 days to try and push this further along.

See more at my website... jay.nadelson.com