All Forum Posts by: Ahsan Lake

@Wayne Brooks, I've done a good amount of research and I wouldn't be doing anything with a FHA loan. I do believe I am referring to a mortgage assumption that exempts the due on sale clause through the federal Garn-St. Germain Depository Institutions Act of 1982. The act exempts me through a parent transferring a mortgage to a child.

@Account Closed I would want to maintain the terms of their mortgage as it was not paid as FHA and has a low mortgage payment for area and I do not need any money down to take on the loan. This would mean I am effectively financing a mortgage for the price of rehabing the property. On the rental side. Isn't capex the maintenance cost?

BP First Post.

I'm looking into my first investment. The mortgage would be assumed from my parents. Currently they have a $1500 mortgage. SFH 4 Bed 3 Bath.

The property can rent for $2400.

I would need to rehab the property for 15K-20K. Closer to 15K, but I always plan for snags. 

Utilities would be handled by tenant.

Capex would be budgeted for 150/Mo. I'm not sure if this is high or low considering I plan on fixing anything old with the rehab.

Taxes/insurance 100$ a month.

Interesting situation because I don't need put any money down on the mortgage, it just gets assumed to me. I really just need to make the property rent-able and keep my rehab costs down to see a large CoC.

Being new at this, I'm sure I'm missing some considerations. Any opinions.