All Forum Posts by: Ariel Echevarria

that was the impression I was getting. I dont want to give up but I gotta find creative ways to raise funds from somewhere. Even if it's private money. 

Hello everyone. I am having a hard time pulling the trigger on my first rental. I want to buy a rental but I only have $3600 in stocks and about 14k in equity. I am wanting to purchase a house that is listed at 79k. I reached out to a local bank and this is what I emailed the mortgage guy.

"I am in the process of filling out the paperwork you sent but I'm afraid I have to pre-warn you that we may need to schedule a time to sit down face to face to go over this form. Also, to talk about some options I have. Just as a reminder I'm looking at purchasing a property for the purpose of eventually renting out to my in laws and they would have the options to buy it from me or just continue renting it.

They currently live in Pennsylvania and are in the process of selling their house. In the mean time, I plan to rent the house out until my in laws arrive. Once they get here they will be in the house for the long term and receiving a retirement pension and working full time. My main thing is options. I have roughly 14K in equity in my primary residence and about $3500 in stocks I would like to use toward down payment. I remember you saying I would need at least 25% down so I can't go much over 69k. I have an analysis that I have attached on a potential property that I'm interested in just so you have an idea of what I'm thinking. I went as conservative on the numbers as I could. If you can offer any insight on the local market on rents, etc I can adjust it. Hopefully this gives you a little more clarity on what I'm venturing to do. "

He looked over the analysis and gave me a couple of adjustments with interest rates and some more information on possibilities. This was his response...

"Thanks for the response. I looked at your attached projections and just a few things that you would want to adjust. The interest rate is lower than what we would currently offer on a rental property note (we would be around 4.5% on a 5yr arm) and the maximum amortization we can offer on those type of loans is 20 years. I need to see your financial statement to see what your total financial picture is. If we strictly use 100% of the equity in your primary residence to provide the down payment, we are essentially creating a 100% loan on that property (and putting us in second lien position). I’d be happy to assist you in completing the financial statement."

I'm not sure what all this means. What would it mean that it would be putting them in a second lien position? after making the adjustments I would still cash flow over $100. which isn't terrible in my opinion. I just have a hard time with the thought of tying up my primary house equity into a rental even though I know the numbers are pretty decent. I wish I could attach the analysis but apparently you can't in the forum. Any advice would be helpful.

Hope you are doing well out there. 

my parents are trying to sell their house with no luck. They are struggling to pay this mortgage and pay for their new home. I think 135k is the lowest they can go. It's a decent neighborhood, a block Fri. Rock Island High school. Near Rock Island arsenal. The link is http://www.zillow.com/homedetails/2135-15th-St-Rock-Island-IL-61201/5209047_zpid/?z7&utm_source=email&utm_medium=email&utm_campaign=emo-savedhomeremind-address

yes in Humboldt

I'm looking to buy a SFH as a first Rental property. I have W2s, Bank statements, Etc that I can show to get lending.

If you are interested in more info please message me so I can share the analysis with you that I did. Thanks.

just an update on this. I talked to my realtor about this property. Apparently it needs a bunch of work on the inside. For the amount of money and time it would take I don't think it would make sense to buy this unless I could get it for 10k and pour 70k into a remodel.

Right now I'd have to be very creative to get a sizeable down payment. Like cash my stocks out approx. $3400, maybe take out cash advance on my credit cards $2500, and do a cash out refinance to get the equity out of my house.  With that being said I'd rather not do the latter two and find a lender that will be ok with me paying fees and interest out of pocket. I think since the loan is so small I could probably get 95% or greater financed and pay the remainder out of pocket.

Hello everyone. I'm new to this whole rental property thing and I wanted to get opinions on a property I'm looking at getting. Here is the background story.

My In Laws are looking to move to my town in Iowa. They currently live in PA and are getting their house ready to sell there. In the mean time they are looking at houses out here but do not want to get a new mortgage at their age ( late 50's early 60s). So, they would rather rent a place with the option to buy it if they wanted. They don't want anything huge or anything that needs a lot of work. So, I offered to be their boots on the ground. As I'm looking at properties I start to think....what if I buy a place they want and makes cash flow. If I could do that I would have to rent the place out for as long as it takes for her parents to get their house sold and move out here. That could be 6 months, 12 months or more. In the mean time I can be collecting cash flow, paying down the mortgage and if my in-laws decide to buy I can still sell it to them for a decent profit or just keep it as a cash flow.

So, here is the deal. The house is going for 66k, county appraises it at 76K but the ARV is about 83k once I spend about 5000 in upgrading the AC and finishing some minor touch ups. The house has all new electrical, new wood flooring with some bamboo flooring in a few rooms and other than that not much else needs to be done. I would need a washer and drier put in or I can just make the renter supply their own. It's a 2bd 2bath approx.1040sqft with an unfinished basement, attached one car garage and it's on a corner lot. In this area the average rent for a place like this is $700-900/month. I spoke with the owner yesterday since I know her step dad and she was renting it out for $750 and got a ton of applicants. I'm thinking I can get $850/month. I used the BRRRR calculator and I would basically be out of pocket by about $50/month for the first year but after the refinance I would cash flowing roughly $240. Cash on Cash was about 18% in the second year. If you want to see the whole report let me know and i'll share it with you.

So what do you all think? I have about 3k in Stocks I could sell to help pay for this place and I have about 10k in equity in my house I could use if I absolutely needed to. I would need a private lenders help to close on this house quickly since they have an offer in but are waiting on me to make an offer. I'm thinking of offering 60k.. They have a $1500 cash back allowance to use towards closing costs or a new AC. Does anyone have any private lenders that are great to work with?

Hello everyone. I'm new to this whole rental property thing and I wanted to get opinions on a property I'm looking at getting. Here is the background story.

 My In Laws are looking to move to my town in Iowa. They currently live in PA and are getting their house ready to sell there. In the mean time they are looking at houses out here but do not want to get a new mortgage at their age ( late 50's early 60s). So, they would rather rent a place with the option to buy it if they wanted. They don't want anything huge or anything that needs a lot of work. So, I offered to be their boots on the ground. As I'm looking at properties I start to think....what if I buy a place they want and makes cash flow. If I could do that I would have to rent the place out for as long as it takes for her parents to get their house sold and move out here. That could be 6 months, 12 months or more. In the mean time I can be collecting cash flow, paying down the mortgage and if my in-laws decide to buy I can still sell it to them for a decent profit or just keep it as a cash flow.

So, here is the deal. The house is going for 66k, county appraises it at 76K but the ARV is about 83k once I spend about 5000 in upgrading the AC and finishing some minor touch ups. The house has all new electrical, new wood flooring with some bamboo flooring in a few rooms and other than that not much else needs to be done. I would need a washer and drier put in or I can just make the renter supply their own. It's a 2bd 2bath approx.1040sqft with an unfinished basement, attached one car garage and it's on a corner lot. In this area the average rent for a place like this is $700-900/month. I spoke with the owner yesterday since I know her step dad and she was renting it out for $750 and got a ton of applicants. I'm thinking I can get $850/month. I used the BRRRR calculator and I would basically be out of pocket by about $50/month for the first year but after the refinance I would cash flowing roughly $240. Cash on Cash was about 18% in the second year. If you want to see the whole report let me know and i'll share it with you.

So what do you all think? I have about 3k in Stocks I could sell to help pay for this place and I have about 10k in equity in my house I could use if I absolutely needed to. I would need a private lenders help to close on this house quickly since they have an offer in but are waiting on me to make an offer. I'm thinking of offering 60k.. They have a $1500 cash back allowance to use towards closing costs or a new AC. Does anyone have any private lenders that are great to work with?