All Forum Posts by: Aleksandra U.

@ Robert

Rate will be around 4.8 to 5% for 30 year fixed. I actually made an offer for 170+3% for my closing cost back

 I'm not really worried about that roof that much because it doesn't have to be done  right away .  Even if it eats my profit for next year,  there will be another year and another year ...

Hello John,

Property does not need much work. It was bought as a foreclosure by the concrator who did most of the major repairs needed. I would have to just clean the unit, advertise it and it's ready to go. 

To bring up value, I could take care of yard, clean it, bring some plants in, put new fence up etc. but that is not really necessitiy. 

I definitely will have inspection done. 

And as far as the value goes - I have been looking at the market for last 6 months. Seems like there is not many properties available in that price range. Whatever comes on market, sells quickly.  I guess if the deal is relatively good, I don't think I have much time to think about it. It will be gone. 

@Alex

Good point - I will find out how they have been with paying rent. I know they want to stay there and are little worried house is going for sale.

@Anthony 

I have no choice but to put 25%. Otherwise I wouldn't be able to finance it. So all my numbers are based on that down payment. 

I see you are from RI,  I'm sure your are familiar with Main Street neighborhood in West Warwick.    

Not the best not the worst. 

In my opinion, house is located convinienty.  

It also has no driveway to plow and public parking just across the street. 

Additionally there is a nice little feature-small building that used to be some sort of business back in a day so it can be utilized as maybe art studio. 

I agree that it isn't a great deal but I don't think I will be losing money.   

First Year might be tight but concidering tax write offs, potential appreciation and overall positive cash flow, I feel it is worth a shot. 

Hi,

I am concidering a multifamily property located in West Warwick, ri.

Asking price $174900

Taxes $4789

Insurance - got quotes from $600-1200 depending on coverage.

2 units, each 2 beds, approx 800sf each. 

Upper unit occupied, $900 rent, currently month to month.

1st floor unit vacant seller stating rent was $1100.

Split utilities, I would have to pay water and sewer bill. No dishwashers, no laundry. 

Property is in good shape. Ready to be rented. Minor repairs and yard needs to be cleaned up. Plenty of parking. Roof might need replacement soon but no leaks or water damage so still ok. New plumbing, new water heaters. Gas heat in lower unit, electric in upper. 

Sellers notes on the listing: $4500 owner annual expense but no breakdown. 

I'm putting 25% down, that's the minimum for none owner occupied investments. 

I'm going to request water, sewer bill, schedule E and breakdown for $4500 to review income ad expenses. 

I think it is a good deal.. what's your opinion?

Thank you. 

I meant conventional loan but for investment purpose. If I only had 25% down, that wouldn't be a problem.

What I'm trying to find out, if there is way to buy a duplex with less than 25% down. 

sorry posted twice

Hello everyone,

I guess I'm confused here. How can I get FHA loan if I already own the house ( btw I have conventional loan)?

I thought second mortgage in that case would always be considered an investment and require 25% down.  

Ok, So they would just give me fha loan with 5% down simply believing me I'm going to move out out of my house and move in to duplex? 

I will be happy to do it but it sounds just to good to be true. How much time they give you to leave your primary residence, rent it out, and move into duplex? What about insurance on my house? Does it have to be changed? If yes, for what type?

Thank you.

Hello,

Trying to decide what is the better option to finance a duplex.

In order for me to buy it as owner-occupied, I would have to sell my house, find rental, move out, move in, find duplex, move out of rental move in to duplex. Lot of hassle and cost associated with it. But I would be able to put as little as 5% down for duplex. And possibly invest saved cash. 

Other option would be to do full duplex rental and put 25% down (which I would have to keep saving for).

Just wonder what are your thoughts about it. 

Thank you for help.

@jeff

I don't know if I can give the property address here. Maybe that would help?

Overall story with this building is: those unit were worth well over 100k but in 2010 whole area was badly flooded. Everything was redone but the assessments and taxes went down   Like 70%. There is no problem with mold, smell or anything of that sort. Complex also have a flood ins. policy. It was 1 in 500 years event, river was rEconfigured, narrow bridge redesigend and there is a slim chance for that to happen again. 

Anyway, since then value has been going up..last year lower lever unit was sold for $57500. In close neighborhoods, different complex condos, are selling for 70-80k range.

The mortgage rate will go up in year 8, but I already know how much, I still won't be loosing money. 

Main problem with this building is because those condos are not warrantable, people have hard time getting financing. 20% down is required. Not a lot ppl have that kind of money, and if they do, they go for something bigger. 

You made good points about exit strategy. But I am planning to keep it for as long as I can and maybe give it to my daughter later on...hopefully it will be paid off or refinanced. 

My agent thinks it is too high. But given the fact it would have good cash flow for years to come,  I just wonder if maybe overpaying for it should not be my biggest concern. I'm only saying it because we are talking about 60k investment that has a good potentaial of bringing income. Probably it would not be a good idea if I was investing 600k. 

Or possibly I should not think that way and NOT overpay for any property. I guess it's rule no 1 in real astate investing....