Originally posted by @Kevin Dougherty:
Quick look at your down payment amount, you will need at least 20-25% down payment, the fees you show associated with the loan are probably too low, appraisal alone is $350-$500 plus, plus, etc...
Are you using a traditional lender like a small local bank or hard money/alternative lender for initial acquisition and then refi into new permanent loan? Most commercial lenders will amortize out to 20-25% but there are some that will go to 30 years, use the more conservative # in your calculations and if you obtain a 30 year mortgage amortization then it's incing on the cake.
For a rental property you should allow a % for vacancy 7-9% in your expenses. your insurance # annually seems a little low, out here in the suburbs of Philadelphia that number is almost double for SFH. If you have a quote for insurance please share who provided the quote because we would like to talk to them as well.
Hope this helps and there are lenders who will do this loan amount, a good loan broker can help you with this, do some research on here and you will find one.
Hi Kevin,
Please see below and thanks for you input. Greatly appreciated. I went ahead and made the changes you mentioned and lowered the repair estimate as the property only needs a minor roof repair on a shed. The interior only needs paint as the property was rented at $1100 in 2016 per MLS so it is a clean property(I have over 10 photos of the interior and they were taken last month).
*This link comes directly from our calculators, based on information input by the member who posted.
What I am trying to figure out is if I should get a regular loan and pay for the repairs out of pocket get a tenant and refi or use short term rehab financing, fix the property get a tenant and refi? What way would you recommend?
Also, I have only looked at a few national lenders but if you know of any local lenders or brokers please inbox me as I am looking for local options to build a relationship with as I would like to purchase another within the next 6 months after this one is complete.
