All Forum Posts by: Ray Hayward

Hello,

My wife and I now own a residential property after living in a multi-family we have owned for many years.We each also have a day job.At the end of the year, we always get a tax return.However, we do not know how to determine where specifically the return comes from.

What we would like to do is determine how much of the return comes specifically from the Investment property so we reinvest that portion back into the property.

Is there an easy way to figure this out?Or should we talk to a CPA?

Hi yes it did appraise well ($2K above agreed price). However, the sq ft is valued signifantly higher compared to comps based on agreed price with the new sq ft concern.

At the sales price we are purchasing, the gross living area is costing $238.20 per st ft. Compared to comps in the $172-$199 sq ft

Thank you both for your replies. I will be researching this ... if there sq ft is actually incorrect, what is the approriate action in your opinion? I will consult with realtor but would sincerely appreciate objective insight on the matter.

Thanks again.

Hello,

My wife and I are buying a single family home. The listing of the home listed the property to be 2009 sq ft. However, the appraiser listed the property as 1100 sq ft. I understand I need to research the public record to determine is accurate. I think the area in question is a heated 4 season room.

If the property is only 1100 sq ft, the price per sq ft is inflated incredibly for what we are offering. If this is the case, what is the right action? We love the house, but would have resell concerns as this is a starter home for us.

Hello,

I am negotiating a property and the seller is willing to consider private financing and is asking me what I am thinking as far as terms, interest rates, etc.

Can someone help me understand what a standard private financing agreement might entail? I would like to make a reasonable offer, but have not experienced this situation yet.

Thank you! I am looking to purchase a 4 family and the seller is offering me to buy before listing on the market as we have been in touch in the past (My mother use to rent there and I love the property). The challenge is my wife and I are in the process of buying a single family so the timing for this isn't great. I currently own a 3 family and have exceptional credit so I hope they will consider private financing.

Other than private financing, is there any other creative ideas to finance this property that someone could recommend?

Hello, I am curious to know the benefits of doing private financing from an owners prospective. Why would someone be willing to do private financing on a home or investment property?

I like this property as a rental but do not have the cash to do the deal myself.

The kitchen is functional but needs to be completely updated to sell for retail (if that decison was made later). The living room has a dip/slant but is not structural according to my contractor who took a close look, but may be costly to fix properly. I believe for these two reasons, and the price being asked, are why there have been no offers on the house.

My intent would be to rent until the house is vacant then do the rehabs and hold for at least 10 years.

If you have a better suggestion/strategy to get this done, I would be appreciative to hear. =)

Thank you all, this is all very helpful!

How quickly could I refiance? (6, 12 months?) If I do have 30% equity, would it be a simple refinance process or is there any hurdles I need to be aware of?

Rehab needs are mainaly cosmetic in the event I would need to sell. Nothing would be required upon purchase, but just trying to think ahead. My intent would be to keep the current tenants who seem to have a good track record (but would do my diligence if offer accepted).

Hello,

I am considering making an offer on a property. The ARV is $240K, rehab estimates have come in at $25K. Therefore I would offer 70% ARV minus $25K, or $145K.

Here is the question, do I also want to factor the hard money interest into my offer as well?

My lendor asks that I pay closing costs and pay 14% and I would refianance out in 1 year. 14% on 145K is approx. $20K.

From a standard prospective, should I offer $145K-$20 = $125K? Or would I still offer $145K and refinance $165K?

Looking to understand the standard practice.