All Forum Posts by: Ben Shaikh

@Sara Abernethy

I didn't realize commercial rates were so high. Do you know of lenders who offer HELOC on non-owner occupied properties?

I wonder if HELOC rates are lower than commercial loans.

@Bill O'Donnell I'm curious how long ago did you get your commercial loan from Teg federal union. 4% seems kind of high considering their rates for home mortgage and HELOC are currently trending down towards 3%

Can anyone recommend a good lender that gives mortgages for an LLC? I can put down the 20% downpayment for a 200K townhouse.

I assume mortgage rates for LLC/investment property are higher than those for an owner-occupied home. Does anyone have a rule of thumb of how high it tends to be?

Thank you.

Ben

I have considered buying the property on cash and getting a HELOC.

I reached out to one credit union and they mentioned I pay zero closing costs if the HELOC is kept open for 3 years. Is this standard or are institutions that offer HELOC with different terms.

I'm curious what other people have paid in closing costs for HELOC assuming I'm not cashing out more than 60% of the properties value?

Here is my dilemma. I reside in a townhouse valued at 180K and my landlord has run into financial trouble and she needs to sell. I'm hesitant to buy the property because I don't see myself residing in the town for more than 2 years (my work contract completes in 16 months). What are some creative options I should consider:

Credit score: 800

I have the capital to buy the property in cash if i liquidate my preferred stocks yielding around 5%.

Should I consider a home equity credit line?

I appreciate your thoughts.

@Naftali Freedman

What's a realistic ROI in brighton with the high taxes?

@Steve Santacroce

Thank you for sharing your thoughts. I agree that families with higher incomes will be more tempted to buy rather than fork out $1600+ in rent.

In my line or work/research, i have run into a lot of working professionals who have good jobs, six figure salaries, and 760+ credit scores. They can pre-pay a years worth of rent, but they don't want to be stuck with buying/selling cost of home should they decide to move out in less than 5 years. 

 In your experience, when managing high-end properties. what is the vacancy like?

Hey Guys!

I'm focusing on single family homes in the Brighton and Pittsford area because they have good schools and they tend to attract more white collar renters with higher credit scores. I need some help verifying some assumptions in my renter pricing model.

1. For non-owner occupied investment property, i'm finding interest rates with 20% down tend to average close to 5% ( 0.75% higher than owner occupied properties). Is that a good estimate?

2. What is a good estimate on investor home insurance for a 200K family home in monroe county. Currently, i'm estimating it at 1% of the price of the home.

3. Does anyone purchase a maintenance insurance policy for major appliances or major house items like furnace and water heater? If you do, what's a good ball park price? 

I would love to hear your thoughts and experiences.

Thanks,

When you folks invest into a rental property what's your investment time-frame? 5 years, 10 years.

Given that closing cost and realtor selling fees can be significant.

@David Krulac  I don't think the administration is pushing for removing the mortgage deduction, instead they are raising the personal exemptions. If you raise the personal exemption, the incentive to itemize is gone for people whose homes are priced in the lower price range. Take the example of a 250K home in the midwest, at 4% interest rate that's $8 to 10K  interest expense (depending on your down-payment). If personal exemptions go to 30K, then chances your taxes and interest reaching that milestone will be low.  Investors and expensive homes will still meet that threshold but i could see the incentive being lost for people who live in low cost areas. Do I think the average joe will notice the difference on his taxes or realize the change ? Possibly not. You would be surprised how many people don't even know which tax bracket they are in. We rely on accountants to do our taxes.