All Forum Posts by: Adam L.

As a newbie, I was wondering if seeking a conventional loan for my first rental property will affect my eligibility in the future to get a FHA loan to purchase my first primary SFR?

I have never owned a home and my newlywed wife owns a condo, which we plan to sell in the future to buy a home. 

As a bonus question, she own the condo outright for $270k and is cash flowing $850/month. Would it be advantageous for us to try to get a HELOC on this property to purchase our new SFR rather than selling the condo?

@Thomas S. what are the risks of pulling out your equity? Having higher mortgage payments to cover if the unit is vacant?

@Juan Alvarez I am just starting out so I’m in the same boat as you.

@Matt Crusinberry do you know what the repayment time is for these loans?

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*This link comes directly from our calculators, based on information input by the member who posted.

Hello, I am reviewing this potential rental property and I can’t figure if I am being too conservative with my expense assumptions. It doesn’t seem like there is any room for cashflow and maybe it is just a bad deal. 

Also, there is an existing tenant that has been there for a long time but the existing owner hasn’t raised their rent. Currently they are paying $700/month but houses on the same street are paying $900-950/month, so I was thinking about raising rents once their current lease expires. If they decide to move out then I can replace them hopefully in not too long of a period. Is this a risky strategy? 

I haven’t seen the property yet so I don’t have a full gauge on repair expenses needed. 

Working to purchase my first property and I have a few questions ...Do I need to have funding/financing secured before I make on offer? If not, how much time do I have to secure a private lender/mortgage after I make an offer? 

What happens if I can’t get the funding and the seller agreed to sell it to me?

@Patti Robertson thanks for the response and that’s interesting about the 1 bathroom. The property I am looking at is a 3br/1ba so I will see what it would take to add another bathroom.

I am looking at a property in a low income area and recently heard of a friend that has been converting his properties to Section 8. My question is would this help to reduce vacancy and does it also help with the quality of the tenant (since they are using a government program)?

For a rental in a lower income area with a higher crime rate and higher rate of eviction should I estimate higher vacancy, maintenance and/or CAPEX?

@Alexander Wardell thanks for taking a look. What should the correct ARV be?

Also, with this being in a lower income area with a higher crime rate should I estimate higher vacancy, maintenance and/or CAPEX?