All Forum Posts by: Anna NA

I think I caused some confusion with my wording which led you to believe they would not be providing a clear title and asked me to sign a disclosure specifically about *that*. What I meant to say is that they (the seller, per my realtor, per their realtor) said they don't have any ADDITIONAL disclosures to give me aside from the lead paint rider that they had already provided me with. My point regarding being worried was not necessarily about only the title itself, but in general about any disclosures that they may be withholding or something which I technically said I received because I signed the contract stating I did.

In the contract (which has a stipulation stating that it is to be reviewed by my attorney) it does state that the seller is to provide a clear title. I'm just worried because I know that the more confusing the wording gets in contracts the more room it leaves for interpretation of the wording (in my op) to the point that a "good "attorney could prove the earth is still flat.. Being a buyer from a bank, I feel I'm a bit on the disadvantage becuase I have to sign stuff in a timely manner whereas they don't, plus I'm being asked to pay the transfer tax whereas usually it's the seller's responsibility.

Ok, on a lighter note - I had a pretty busy weekend because my cousin was visiting from Chicago and we were in NYC from Fri until Sun eve. I checked in here in a semi delirious state at 2am on Sunday morning and after reading your post, I had myself scrambling researching transfer tax rates and laws for NYS. For a while I was convinced "OMFG I'm so @#$@ I'm going to owe $120k+ for transfer tax". Somehow I managed to calculate the $4 for each $1000 as $4*30,000 for transfer tax instead of $4*30 which seemed to make more sense to me at that hour?!? :).. don't ask...

I could, but that requires time, and I have no time to go there and watch over it :(

Thanks for the warm welcome and here's my life story. I don't have much background in real estate at all. I've been interested in it though since I was very young maybe 12, but that all kind of fell apart and my interest diminished somewhat in my later teenage years.

Upon the suggestion of my ma I took a real estate course when I was 17 and received probably the worst score in the history of people taking the test, all of 43%! .. Regardless though I did learn a few things there mainly how to look for decent properties which I like to brag that I think I actually have a talent in.

So since I had no money I decided to go to college for computer science. Now I work a 9-5 in the IT field where I play different roles depending on the projects I'm needed for: programmer/ business analyst / team lead.

A few years ago I bought a family property outside the country which is not rented out it's just there which I plan to keep for ever because it dates back generations. If I'm in a decent financial standing when I'm old I will put it up for sale and the young family member who promises to keep it for ever might get it for free.

The property I am buying is several hours upstate from me in a decently populated area. A two unit place, both apts about 800 sqft. It needs work as far as updates to cabinets, bathroom fixtures, and some paint, etc. This is the first house I'm buying and it's primarily for investment to rent out and keep most likely until the market turns around a bit, so I figuring a few years.

Could you explain 1 & 2 in a little more detail? I have never heard of either. For 1, you can make 5-10k assigning, but on what amount of rent?

I got u.. thanks for this great explanation and insight esp. about the cash on cash return, that makes a lot of sense.

As far as the paper work, it's already begun with the "sign my life away". I'm figuring this is generally a standard procedure and I'm having the attorney look at it before it's finalized. There is a bit of risk to this deal for me because due to the price, I purposely waived the inspection process in order not to let the deal slip and have the upper hand over other bidders. I'm not an expert by any means in house inspections, but I have a general idea of the things to look for in ensuring that I'm buying a "sound" house which is not falling apart at the foundation level or is not sloping sideways for some reason, or the roof is not leaking, water damage, etc. I've seen many beforehand which I had to pass on because of some of the reasons listed. The one here was on the market for 2 days so I think I just caught it at the right time. The realtor also brought with him a former inspector and he advised me on the things that he saw. One of the comforting factors in this whole thing though is that it's sort of a calculated risk due to the price I'm paying where even if there were major issues, those would not exceed the price I'd have to pay for the house if it were being sold by a private party.

Mostly, I'm worried about things such as possible backed taxes or liens on the house. I did not receive any disclosures regarding that because they said there were none, but they asked me to sign that I had received them - that's what I'm having the attorney look at because it seems a bit "unfair" to me.

So that's the deal.. hoping it all goes through without a hitch, but I'm figuring there will very possibly be unforseen issues that I may have to deal with.

I took a second look at your question here below just because I wasn't sure if I understood what you were asking, or rather I'm not clear on the differences between the two points you mention.

Based on your other posts I saw that you're calculating cash flow in the following manner outlined below. I am putting in the numbers as they pertain to my circumstance:

$30,000 purchase price
$0/mo payment (7%, 30 years)
$900/mo rent --- I've lowered this due to possible 10% vacancy and/or possible lower rent during the year.
$450/mo expenses (based on 50% of rent)
$450/mo NOI
$450/mo cash flow (NOI - payment)

I have not taken into consideration income tax -- does PITI take this into the equation or is it only the property tax included in this? I'm presuming that PITI includes all taxes... if so, then I shouldn't be in bad shape with *this* investment, it's the ones that require loans that worry me... As far as the rent goes and it being $1000, I'm estimating based on full occupancy which admittedly is probably unreasonable, but that's why I changed it in the above calculation to $900 instead to take the risk into the possibilities.

Back to my original quesiton though, is there anything I should be looking out for as far as the foreclosure buy itself goes?

The first house it would be, because I'm paying for it in full so I have no mortgage to pay off. $1000/mo rent.

Sorry -- I didn't mention that the $600 is AFTER expenses, except I calculated those at 40% rather than 50% like you suggest. (i.e. I'd rent out at $1000), so based on what you said I'd be getting about $500/mo cash flow rather than $500. The first house has no mortgage, it's my 2nd, 3rd, 4th which would. My plan would be to pay those off at max possible even if it means that I'm putting 100% of profits in the first few years into paying off the mortgages ... (I hate debt and will avoid at all costs whenever possible.) Has anyone gone down this track, of suffering the first few years, and then gaining a nice return, and how long do you estimate I'd need to eat ramon noodles for? I do have a FT job which I will keep through this time.

My only success story to date is that I bought a family house international, then the dollar tanked, so I sort of "made out" if I were to sell it now.. Hopefully I will have more success stories in the states where I am finally able to invest and starting on my "dream job" :mrgreen: after many years of cubicle dwelling.

:)... I would be curious too if I were you (about doing that in Westchester) but I am a long distance investor, will be using a management company -- the house is not in this areas but several hours away.