All Forum Posts by: Andrew Zannotti
Andrew Zannotti has started 11 posts and replied 123 times.
Post: Assumable Mortgage Deal
- Killeen, TX
- Posts 127
- Votes 91
All
Thanks for providing insight on things for me to thing about. As Far as the moving piece that is always going to be an unfortunate part of the profession and there is no way around it until I retire but I don't really want to wait for the next 7 years minimum to begin building my investment portfolio if that makes sense.
@Account Closed I'm really looking to build experience of the process as you mentioned and it makes sense to me to start with one close to me to understand the process even though i understand upfront my time on station is finite.
Additionally I plan on over the next few years expanding my buy and hold portfolio but building out of Texas because from everything I've seen (Fort Hood area) its extremely difficult to get a higher cash flow due to the high state tax rate. I'm also in the process of potentially working my first flip (going to do my first walk through of the property tomorrow) with another SM that has more experience in it hat may want to partner with me which I would like to be able to do in Texas long term. Thanks for the comments and I'm always looking for feedback and mentorship.
V/R
Andrew
Post: Assumable Mortgage Deal
- Killeen, TX
- Posts 127
- Votes 91
Hello All,
I'm working on making my first investment purchase and I'm looking for any insight on anything I might be missing or need to think about. I've found someone that is looking for someone to assume their mortgage for a duplex in the military town I am stationed in. I realize that it may not necessarily cash-flow much (Texas state taxes) but I figure it will be a good first deal to begin learning the business with a minimal upfront investment with it being an assumable loan. Any suggestions and guidance would be greatly appreciated.
| Address | Killeen TX | Duplex built in 2015. |
| Property Valuation | $145,000.00 | |
| Offer for Property | $139,000.00 | |
| Mortgage Payment | $890.00 | Includes Mortgage+Taxes+Insurance |
| Taxes | $0.00 | Factored into line above already |
| Rent | $1,375.00 | Currently Rented a 650 & 725 |
| Property Management | $0.00 | 10% Tenant Renting at 650 is Property Manager |
| Capital Expenditures | $68.75 | 5% Built in 2015 |
| Repairs and Maintenance | $68.75 | 5% Built in 2016 |
| Vacancy Rate | $137.50 | 10% Assumption |
| Cash Flow | $210.00 | |
| Notes | ||
| Assumable Mortgage with buyer responsible for transfer fee and VA funding fee, Tenant Renting at 650 is current property manager if not other rent will be $725. | ||
| VA Funding Fee | $2,988.50 | |
| Title Transfer Fee | $250.00 | |
| Total Out of Pocket Costs | $3,238.50 |
V/R
Andrew Zannotti
Curious, does anyone have any experience purchasing property with the intended purpose of renting it out as section 8 housing? I've done some research and it seems like a pretty straight forward process to go through the vetting process before being able to accept applications but as anything that may not necessarily be the process when executing it. Any personal experiences such as how you screened tenants, how where they, and any other info about it would be greatly appreciated.
Andrew Zannotti