All Forum Posts by: Angie Menegay

Awww... such a sweet ending. Makes me want to become a vegetarian though :(.

Chris Martin: Correct. I was going to ask Aaron Powell that too, but didn't want to sound like a CPA and get into that discussion :).

Sounds like Aaron has the details of the numbers. I just wanted to point out that we don't have enough info on the numbers to judge, even though on the surface it sounds high (74%). The owner might incorrectly categorize those items as repairs.

I think you'd have to analyze those 74%. What are the details? Taxes, insurance, repairs? The taxes and insurance numbers help give you a better picture of what they might actually cost. What is the nature of the the repairs? Are they big ticket items that would typically happen every few years? Are they those new wood floors, A/C unit, appliances that you just mentioned? If so, they wouldn't be typical maintenance issues that you expect every year. In fact, they would be nice updates to the property that you didn't have to pay for.

I don't think there's a short and simple answer to your question :-(. You need to study the details of those numbers to get a better understanding of the units' condition.

Angie

Without seeing your contract, it's hard to give definitive advice, but on the surface, I agree with J Scott and those other agents who have offered their opinions.

Just to share my experience on a similar deal and I was the listing agent - My seller had second thoughts after the contract was signed and wanted to back out (just like your seller). I had to gently remind him that if he chose to back out of the contract, he would be the one breaching the contract and the buyer could sue for specific performance. Contracts are there to protect both parties. Read them carefully and you'll know where your rights are.

Angie

Here's my understanding about insurance based on my personal experience with rental properties:

1) You'd want a Landlord policy, not Homeowner. The biggest difference is the amount of personal property coverage you want to purchase. Tenants will typically need to purchase their own renter's insurance policies to cover their personal properties. You'll probably buy another renter's policy cover the gap for yourself if needed. Other things that come with a Landlord policy are Liability (also available for Homeowner's), Vandalism, Theft, Lost Rent coverages, though these are mostly optional. Landlord policies are usually a tad cheaper than Homeowner because of the reduced personal property coverage afore-mentioned.

2) Your rates will depend on your own credit score, age, and condition of the property. And sometimes whether you bundle policies with a carrier or not.

3) I personally use Allstate because I have all Homeowner, Auto, Umbrella and Landlord policies with them. So far, they give me the best premiums for the coverages (knocking on wood...). I haven't been able to find a better deal, even from independent insurance brokers. I know they're not the best, but they're the best I could find at the moment.

Hope that helps,
Angie

1% is the typical amount I've seen around here from mortgage brokers. Some banks charge it as well.

Yes the bank typically adds back depreciation for you (since it's just a paper loss). At least those that I've dealt with have. Again, you can always end up with a bad LO who doesn't.

Yes FNMA allows up to 10, but the guidelines are stricter (lower LTV etc.). I have 6 personally (including a duplex). I just don't have a quad, so I didn't want to give George P. a definitive answer based on personal experience, but I strongly believe they treat duplexes and quads similarly.

But you're correct that not all banks do it. They have their own internal guidelines too. The lender who loaned me the 6th mortgage just changed their rules this year and no longer provides more than 4 mortgages.

And sorry about the link :-( I didn't mean to advertise for them. As said, I have no affiliation with them.

I used ServiceMagic once and was happy with the 2 contractors I ended up using (maybe I was lucky). They are called HomeAdvisors now (maybe they got bought). Just Google ServiceMagic.

I'd suggest talk to another lender. I believe FNMA does allow up to 10 mortgages (1-4 units).

Here's a mortgage broker that does investment loans if you want a quick answer. I'm not affiliated with them or suggest that you use them. But they do investment loans, so you can call and ask:
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