All Forum Posts by: Sam Alpha

@Dirk Smithson I have a little more for you here. You are correct about the 15%. However, since this is an investment purchase, the PMI does not leave the loan until the full amount is paid off. In that case, it would only be prudent to put down 20% and not have to deal with the PMI for life.

Lol.  You seem a mean negotiator.  I will try that line at some point.  However, I know the story behind this gentleman and knowing that I'm already getting a decent deal makes me not want to be greedy.

I always looked at everything as "business" and numbers, but with gaining maturity over time, I have understood that the value of relationships and ethics is so much more.  In being aligned with these principals, ironically, I have fared better.

@Dirk Smithson now that is a very nice breakdown!  Thank you for the additional data.  It looks that I may qualify on those grounds and also have the 15% on hand.

As my plan B, it seems like I have the following options:

i) home equity line

ii) direct loan from the bank (fortunately, I have a good relationship with them and they seem willing)

iii) loan against my 401k (max. $50k with an interest rate of 5.2% and no penalties for early payment) + own $$$.

 No worries :-)

 Hi Wayne,

I'm not quite sure I caught what you were saying.  Regardless, it looks like you are trying to say that there may be a discrepancy in what the owner is stating.  

Since this is the first deal of this kind that I am handling (and also due to time constraints) I have taken a members advice and will be having an attorney carry out that part of the process.

@Dirk Smithson you had earlier mentioned a 203k for this deal.  I had responded by stating why that would possibly not work in this instance.  However, since than, I have found something that may work.  I thought I would share it with you and the community as it may come in handy for some similar deals out there.

The mortgage is called "HomeStyle" and is backed by Fannie Mae.  Below is the link that goes into the details.

https://www.fanniemae.com/content/fact_sheet/homestyle-renovation-factsheet.pdf

@J Scott some very valid questions there.  The owner quoted this figure as he was going to get the work done at some point in the past and this is what he was quoted.  He said that if I had to do the work myself, I could shave $10k+ off that figure.

At my end, I am getting a full inspection done, as well having a GC from my end give me estimates.  I will determine the final figure for repairs based on the evaluation of these two.

@Katie Neason Thanks for your response.  Unfortunately, I can not put this under contract as it is a foreclosed property heading to auction.  The link included explains the details.

Welcome to the community @Account Closed I am a buy and hold investor and concentrate around the East Orlando, UCF, Lake Mary and Oviedo area.  If you ever get anything on offer in these areas, do let me know.

Again, great having you on board!

@Jeremy Carl I have a real nice 4-unit that I know is coming on to the market.  It is built in the mid 80s and is located 2 miles south of UCF.  Each unit is just a little over 1100 sq ft, 2/2.  3 out of the 4 are rented for an average of $800 and the 4th one is vacant due to owner selling and moving away.  There are no major issues with the property besides cosmetic updating.  

The asking on that is $300-325 for all 4 units.  In running your numbers, I feel that after all is paid, you will have a cash flow of $250-300 per unit.

PM me if this is of interest to you and I will get the details for you.