All Forum Posts by: Allan Quintela

1. I'm going to ask the bank about a conventional loan for this one. There is still a chance I might put less money down though but itll depend how much more the mortgage will go up. But I'll look into that.

2. I am also not sure what they consider as the $700. All these numbers are what the bank came up with. I honestly think any other expense will be alot less than $700. I will be taking care of any maintance as well. 

3. I dont know anything about the utilities yet. That's a question I'll have to ask at the open house tomorrow. Usually electric the tenant pays for in my area but the rest I think I'd have to pay. And I dont know how much anything will be. 

hey BP! So tomorrow I will be going to an open house to check out a triplex. I want to see if you guys think the numbers are good and see if it's a deal i should put an offer on if everything in the property looks good. So here are the numbers (let me know if any other value is missing)

This is an FHA loan

Sale price: $400,000

Unit 1 income: $1,300/mo

Unit 2 income: $1,350/mo

Unit 3 income: $1,200/mo (I will be living in one unit so I am not counting the income of this one!!)

[All numbers are rounded up]

Estimated prepaid items: $3,200

Estimated closing cost: $5,300

PMI, MIP, funding fee: $6,300

Total cost: $415,000

I'm putting about 10% down as of now which is about $41,000 (may put less depending how the numbers come out)

Term: 30 years

APR: 5.5% (yes high I know)

First mortgage (P&I): $1,910

Hazard insurance: $100

Real estate taxes: $343

Mortgage insurance: $240

Total payment (PITI): $2,600

All other mostly payments estimated: $700

Total all monthly payment: $3,300

(I am not sure what they consider all other monthly payment to be and where they came up with $700 but that's what I'm going by)

All these numbers are taken come the bank pre approval summary.

I will be living in this house with my gf for atleast 2 years than eventually will rent all 3 units.

I also dont know yet how much utilities cost so ill have to factor all that in after.

From my quick math:

$3,300 - $1,300 - $1,300 = $700

After all expenses I'll be living in a 3 bedroom apartment for $700. (Eventually renting it out for another $1300)

Ps. On the MLS disclosure it says rent prices are low for that area so may have small room to raise it but I am not counting on it.

Sorry for long text but let me know if this sounds like a good deal! Will be my first triplex!!

Hey BP! I'm currently in the market to buy a house for me and my gf to live in. I'm torn between buying a duplex house and living in 1 side and renting out the other, OR buying a single family house and living in it and hopefully flip it and resell within  a year or 2. I do construction work myself so I would be slowly upgrading the house while I live in it to hopefully sell for a nice profit then redo everything.

If you were in my shoes or if you had to chose between one, which would you do and why? 

My goal is to own many properties and flip houses and make a living out of it, incase that helps. 

Thanks all!

Hey BP! Need some advice here,

Basically as the title says, should I use my cash flow to pay off my loan or save it for a down payment for a new unit? (Reinvest)

I have 2 rental property generating a total off $2,500 a month gross income. After HOA fees, escrow...ect...I'm left with just little over $1,000 cash flow. (Assuming I pay the minimum payment)

Question is, should I throw that money towards to principal or pay off the loan? I owe a total off about $110,000 on both of them together and pay about 5.5% interest.

If there are any other values needed to know in order to give me a proper response please let me know!!

Thank you

I have a question...if you still.owe money on a rental property, will the bank still lend you more money to buy another rental property? When is the "break point" that you need to pay off the first property before you can get a loan for another one? 

Hope my question makes sence 

Hey BP! I need advice on a decision I have to make.

Long story short, my gf and I both applied together for an FHA loan, initially to buy a 2 unit house and we got approved for $385,000 with 20% down. That approval is only valid assuming we rent out the first unit for atleast $1,600/mo and live on the 2nd unit.

If we decided not to buy a 2 unit then our loan would go down to $285,000 with 15% down. We found a nice 2 bedroom town house for $210,000 which is fairly low for the area. Can easily resell for $230,000 in a few month. I can also easily rent out the 2bedroom townhouse for $1,500/mo if I ever move out.

Basically my question is if were in my chose which loan would you chose? Would you take advantage of the full ammount the bank is willing to give or go for something that will keep me more "comfortable " financially? 

I know to answer this question their is alot of variables but I'll do my best to answer (beginner here)

Thanks!