All Forum Posts by: Anthony Portugal

 Thanks John,

Yes, I understand the reason to carry insurance is to avoid being sued for your personal assets. My question is what kind of insurance is required. Do I need property insurance and landlord insurance? Or do I just need landlord insurance? What if there's a mortgage on the house that you plan to rent? 

hello,

Just wondering what the insurance requirements or suggestions would be for a rental property that is owned outright without current property insurance. Is it a requirement to have property insurance in addition to landlord insurance? What if there's no interest in insuring the actual building or landlords property, but just insuring against bodily harm/injuries that occur on the property...Are there policies for just that?

Thank you for the help,

Anthony

Thanks everyone for the input so far everyone. I will double check on the origination fee. Couldn't a lender "mask" the origination fee with other non-required fees. Something that jumps out at me is the $500 "admin fee" and $500 "processing fee." 

yes, this is an FHA loan for a potential duplex purchase. After 1 year of using as my primary residence, I can move and rent the 2nd side. I'm viewing it as more of an investment, so don't want to tie up too much of my liquid capital in a down payment. Plus, I'll need some liquid funds for house repairs.

I'm aware that the final figures will differ from this, but is there no obvious overcharges by the loan officer/lender that you can see? Again, this is my first loan application, so I don't know what are some standard charges vs extra. 

Also, why such a large difference between percentage rate and APR?

hello,

Very new to real estate investing and want to make an offer with bank loan financing. This would be my first time applying for a loan and not sure how to properly evaluate all the mumbo-jumbo words and fees. Please help me breakdown this offer, it's meaning, and whether this is a good loan offer. 

Thank you,

Anthony 

hi everyone,

Long time lurker and real estate investor aspirations. I'm checking out a duplex today in hope to finally step foot into the investment world. Please let me know what you think about the following deal:

REO duplex listed for $300k in a very affluent/family oriented neighborhood in South FL. Both units about 2/2, 1000sq/ft. Shared double car garage. Needs mild TLC...Maybe $4-5k. Rent for each unit would bring in the ball park of $1300 to $1450ish.

I would make an offer of $260k. With 5% down, no PMI. 30yr fixed at 4.125%. Taxes $6400-7000/year. Insurance..No idea. My guess $3000/year?

These figures put my monthly expenses in the area of $2000/month. 

Thoughts and other things I should consider ?

Thanks,

Anthony

Thank you everyone for the great advice so far.

At this point, my goal with property investment is to supplement my primary income, not necessarily to completely replace it as my main source of income. I currently have a great long term career that compensates me very well, which I'm very happy with. But, I do have a very strong entrepreneurial itch and an interest in real estate. 

That being said, I can say it is more important to my fiance and I to have the ability to gain our "perfect" home than it is to obtain investment properties, which may interfere with getting our "perfect" home. I understand that the income gained from investment properties adds to our yearly income and may help balance out that increased debt-income ratio, but loaners want to see 2-3 years of tax returns for mortgage approval. Meaning, if I were to obtain investment properties first, I'd have to wait for that long until loan companies/banks recognize that income toward loan approval. Does that sound correct?

Ok, so if I'm understanding correctly, any debts acquired under the LLC, will actually be debts under my personal name as well. These debts/loans under the LLC will be viewed/considered when I'm applying for personal credit/loans outside of the LLC, thus increasing my personal debt-to-income ratio. A higher personal debt-to-income ratio will potentially reduce the amount for future loans/mortgages I may be approved for, despite those debts being under an OLD. Am I correct in these assumptions?

See, that is my main concern about pulling the trigger on investing in rental property. I am also in the market to buy myself a house within the next year, but don't want what I do with property investment to interfere with my ability to purchase my personal home (in regard to loan amount approval). 

So, the advice in my situation would be to hold off on buying investment properties until I secure my own personal home purchase/mortgage?? That way I don't have to worry about a higher debt-to-income ratio that would potentially deny me a mortgage in the amount I may need for my personal home property??

Ah, also, I personally don't want to place a mortgage under my name and transfer the deed into an LLC because I have yet to purchase my own live-in home (I'm paying significantly cheaper rent than what my monthly PITI would be for a similar home). So having a rental property's mortgage under my name would significantly increase my debt-to-income ratio, which will play a major factor when applying for my own personal home loan.

Hello everyone,

I've been an off/on lurker here for a couple years and an aspiring rental property investor. 

After finishing grad school a few years ago and building some capital, I'm finally in a position to potentially invest in a rental property.

Ideally, I would like to obtain a mortgage to purchase property under an LLC from the get go. But, correct me if I'm wrong, I understand that obtaining a mortgage for a newly formed LLC would be extremely difficult. So, I'm assuming this may not be an option.

I do currently have enough cash to purchase a property outright, placing the title under the LLC. But since this would be 90% of my savings, I do not want keep the cash equity in the house. My question is, would I still run into problems obtaining a mortgage under an LLC for a paid off property owned by the LLC?

Thank you ahead of time for all advice/suggestions. This is a great site!

Anthony