All Forum Posts by: Anurag D.

Hello BP Team, Mortgage Underwriters/Lenders,

Thank you for information exchange in BP forum.

> Context:

Property: Low Cost Investment property (Condo with HOA) in contract.

Location: Atlanta, GA metro

> Issue:

1. Condo Master Insurance does NOT have full coverage of property structure. (Only about 90% of coverage). HOA is not responsive, and is NOT willing to change to 100% coverage.

2. Loan Underwriters do not approve the loan, because they need 100% coverage in Condo Master insurance.

Underwriters also have rejected the option of Buyer purchasing additional insurance coverage for remaining 10% NOT covered by Condo Master insurance.

3. Both Freddie/Fannie Mae compliant and DSCR loans have rejected the loan.

4. Seller does not wish to go for the option of ‘Seller Financing with possible refinance clause’ in future.

> Query:

1. If you are Lender and already have verified that your Underwriters will allow approving the loan with above dependency, please let me know and I would connect with my loan-officer.

2. Requested Loan Duration: At least 15+ years. Loan Amount: about $60K
3. Please reply by July 2, 2022, if loan approval be possible. I plan to withdraw offer tomorrow.

Thank you in advance.

-A

Hello BP Team, Mortgage Underwriters/Lenders,

Thank you for information exchange in BP forum.

> Context:

Property: Low Cost Investment property (Condo with HOA) in contract.

Location: Atlanta, GA metro

> Issue:

1. Condo Master Insurance does NOT have full coverage of property structure. (Only about 90% of coverage). HOA is not responsive, and is NOT willing to change to 100% coverage.

2. Loan Underwriters do not approve the loan, because they need 100% coverage in Condo Master insurance.

    Underwriters also have rejected the option of Buyer purchasing additional insurance coverage for remaining 10% NOT covered by Condo Master insurance.

3. Both Freddie/Fannie Mae compliant and DSCR loans have rejected the loan.

4. Seller does not wish to go for the option of ‘Seller Financing with possible refinance clause’ in future.

> Query:

1. If you are Lender and already have verified that your Underwriters will allow approving the loan with above dependency, please let me know and I would connect with my loan-officer.

2. Requested Loan Duration: At least 15+ years. Loan Amount: about $60K
3. Please reply by July 2, 2022, if loan approval be possible. I plan to withdraw offer tomorrow.

Thank you in advance.

-A

Hello,

> Assumption:

- Single Family residential rental (one-unit) (CA) with good (~45%) equity built .

- DTI maxed out for Conventional loan requirements (Freddie-Fannie based loans)

- DSCR just reaching 1 (private loan requirements need DSCR > 1)

> Goal: Take equity out.

> Query: Are there options available to take equity out.

> Possible Options:

1. Cash-Out-Refinance (Conventional): Not Possible due to DTI constraints?

2. Private Loans: Is it possible, if DSCR is just about 1?

3. Portfolio Loan: Is it possible to have multiple properties/ LLCs in different states to be in single portfolio loan?

4. NINA/NINJA Loan: Current interest rates?

5. Commercial Loan: Current interest rates?

Any other reasonable option?  Please assist if possible.

Thank you for your cooperation.

Web-references share quarterly details of Net migration.
Is there a way to further ramify the data as:

> Tenants vs Home-buyers for Incoming population migration.

> Tenants vs Home-Sellers for Outgoing population migration.

Presence of above information would facilitate in having more accurate data, and may avoid future correction/ crash; and could help identify over/under-focused markets from investor perspective.

Thank you.

Thanks.

Redfin releases some good forecast..

Zillow/Apartments.com / Rent.com might have an opportunity to produce and publish Rental-statistics and forecasts, that would certainly benefit RE-enthusiasts. :)

Hello Everyone,

There are good references available for property buying/selling data and forecast.

> Similarly, are there any references available from where actual data could be found for:

a. Average Days to Rent Nationwide.

b. Month-to-Month ‘Average Days to Rent’ data based on Zip-Code/Metro/City.

> Need To Know: It is not known to me whether hot/ cold housing market also translates to hot/ cold rental market, at all times.

Thank you in advance.

I went through similar exercise last year, sharing my experience.

Below criteria may assist in narrowing down options further:

-> Assumptions:

> Duration of ownership:

- short-term: is more appreciation a priority.

- long-term: is passive-income a priority.

> How easy/difficult it is to find tenants in growing, normal, and challenging economy.

> Mello-Roos, Supplemental-tax etc..

> Purpose: only investment Or, semi-investment (retirement)?

> places that would appreciate more.

- are there cities where property-values could double in next 10-15 years.

> places that would have more cash-flow.

> cities that did not go bankrupt during economic downturn.

> school-districts: are they a few miles away, or ~10+ miles away.

> which are the top-most neighborhoods in the nation to raise family.

> which cities have less probability of natural-calamities (wildfire/dam/flood/quake et..)

• Elevation from sea-level etc..

> would I be able to stay for 5 years in same property without change in current life-style. (movies, restaurant, medical facilities, malls..)

> public-commute, disturbance and other common criteria.

> Visit short-listed cities in person, at least twice.

> city population growth, future job growth.

> (if available) city's average salary, average house price, average rent (for 3/4 bedroom SFH..)

> is the city a prominent hub (tech/finance/ govt ..etc..), college-town, state-capital..

> Past data does not (always) translate to Future failure/success.

-> Accessibility:

Tracy is (relatively) closer to Bay Area, international airports, Fresno/Yosemite, LA

Sacramento is (relatively) closer to Oregon, Crater Lake, Reno/Tahoe, Death Valley, Fresno/Yosemite, LA, Bay Area.

-> Action:

I immediately changed my plan last year (2020), and switched to Sacramento, as previous city raised property tax (unjustified 1+ %) drastically.
BP forum valuable suggestions and above assumptions helped to narrow-down places-of-interest.

Decent population growth is also a positive signal.

I am slightly negatively cash-flow, but expect to be break-even (/+ve) next summer.

Appreciation: about 23%

> Disclaimer: 2022 cannot be compared to 2020.

———————————————————————————————————————————————————————————————————————

Applying above based on prevailing & year 2022 perspective may provide answer on cities that you are looking for.

Good Luck with your search.

Thank you Greg for taking time to respond.

> Intent is to PROTECT Personal (Primary Home) & other Assets (NOT :) piercing the corporate veil) from rental-properties litigation, and smoothly PASS-ON rentals to next-generation.

Attorneys certainly are good in process, but may neither have comprehensive LLC-policy-details (for all 50 states), nor may be malleable to prevailing market details (how to manage mortgage loans).

Bigger Pockets is a great source to share/procure real-life details.. and then Make the move.

Thanks.