Going live on a buy and hold

[Joseph H.]

Alright, I am a little nervous but I am putting in an offer on my first investment property out of state using a HML. I have done months and months of research and reading and feel confident in the way o am doing this but I have several questions.

A property I am looking at is going for $130,000 and I am offering $120,000.

It will need $15,000 in rehab

A “tech-fee” of $150 paid by the Real Estate agent if the offer is accepted.

A 4.5% upfront cost for the HML and a few hundred for documents and title closing.

$1,000 earnest if the deal is accepted

And the property comps for $165,000 fixed. (Rough number ran by the REA, with a more precise humber later today)

The property is estimated to rent for $1,380 a month which I can probably push to $1,500 once rehab is completed. With a cash flow of $400 and 7.8% a month.

I am finishing a duplex next month and refinancing it with a cash out loan which will go towards the rehab of the new property.

I am looking for someone that has some experience in the KC, Mo area with this as I am from there but do not currently live there. I want to make sure I am doing every step correctly and in order so I don't mess this up. I am new to HML and would like some advice or guidance if possible. I have bought property before with VA loans and cash but need Conventional or HML. Any help would be appreciated.