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All Forum Posts by: Account Closed

Account Closed has started 13 posts and replied 37 times.

Post: New investor near Johnstown Pennsylvania

Account ClosedPosted
  • Philly PA
  • Posts 37
  • Votes 39

Someone once told me that in Pennsylvania you should pay the water, sewage and garbage bills and simply charge a little more in rent. These utilities are 'leinable' meaning if the tenant does not pay them the utility companies can take a lean out against your property. Not sure if that's true or not.

Post: Tenant moved. What color should we paint the apartment

Account ClosedPosted
  • Philly PA
  • Posts 37
  • Votes 39

Most people opt for neutral tan because it goes with any decor so no potential tenants will run away screaming. To me tan screams 'generic rental.'

Personally I love dark steel gray with bright white trim. It's bold but still neutral enough to go with most decor. I like to go bolder because it gives the space a higher end feel. If you opt to stage the apartment hang a few black and white prints and add a pop of color.

I guess just choose something that looks good with the flooring and the lighting in the room and stay away from crazy colors. Avoid painting small rooms too dark. I like cooler tones in bedrooms because it's more restful. Warmer tones are appropriate for the kitchen.

Here's an example I pulled off the internet. I consider this more of a moss green/gray but close enough. (I'm an artist and I drive my family nuts with paint colors- for example- I will say 'that yellow has too much blue in it' and they all look at me like I'm crazy.)

Best of luck!

Post: Alternative funding/private funding

Account ClosedPosted
  • Philly PA
  • Posts 37
  • Votes 39

I recently graduated nursing school (hello job security) and I want to invest in real estate. The problem is I'm having trouble getting my first full time job- my lovely school messed up three times and screwed me out of 3 months of wages. Now that everything is straightened out I'm applying like crazy with no success as of yet. I'm working almost full time where I'm at now- $24 an hour, my credit score is 724 ish and I have no bad remarks on my history.

I have already missed out on two properties I loved because of this nonsense with my school and now there's a third one that's even better than the first two. Properties in this town go quick- in as little as three days. It's three units, I had planned to buy it with an FHA, live in one, rent the other two.

Has anyone had any success with unconventional funding?? I feel like if it sounds too good to be true it probably is.... 

Post: Advice on increasing curb appeal

Account ClosedPosted
  • Philly PA
  • Posts 37
  • Votes 39

I think what bothers me the most is too many textures- you have a natural stone retaining wall, concrete stairs going to wooden stairs, wrought iron hand rails, wooden columns and vinyl siding. When things are so mis-matchy it makes your eye jump from one element to the next. I like to use repeating elements, it's more 'restful' looking.

Since the concrete stairs would be such a pain to replace I would focus on trying to make them blend with the wooden stairs better. There are many ways you can do this- you can add wooden tread to the concrete stairs (probably will need repaired first,) you can add stone tile to both the wood and concrete stairs (and porch, too,) you could paint the concrete to match the wooden stairs (this would be the quickest fix but painted concrete tends to chip and look horrible!) or maybe add concrete treads to the wood stairs and do all the vertical pieces in stone. The possibilities are endless depending on your skill level if you're doing it yourself, budget, timeframe, etc. Do a google search and hit images to get inspired. Next I would replace the retaining wall- the natural stone looks a little sloppy for a house with such clean lines. Choose a retaining wall that complements your stairs, try to repeat the color, texture, shape and/or material used so they match.

I don't hate the trees but maybe theres a reason they need to go? How about a floating stepping stone pathway from the car area to the stairs with mulch around and a few green plants scattered about. This house has a lot of sharp lines and a few plants will 'soften' the look just a bit.

The wrought iron handrails tend to fade into the background- I would replace them with thicker wooden handrails for a bolder statement and paint them to match the trim. Personally I really like white trim because it 'pops' against the color but that’s your choice. I would paint the door a different color too, it looks like a shadow. You need three colors- a base color for the house, another for the trim and an accent color. The accent color is what really grabs your attention. Google ‘green house, red door’ and click images to see what I mean.

Personally I’m not crazy about the ‘sea foam green’ as a base color. It’s too much of a ‘pastel’ color which makes me think of little old ladies wearing polyester pants. I like more modern colors like a deeper sage green. That’s my personal preference but depending on the climate and what colors the other houses in the neighborhood are it may just right as is.

Then just a few little things. Create a false panel to hide the recycling bins- you can buy ready made ones or make your own. http://diy-alternative-energy.com/15-best-looking-ways-hide-trash-cans-frugal-fabulous/ Change out the light fixture for something more decorative. Bold new hardware to match your light fixture. You can make the house numbers bolder too (they shouldn’t look like they came off the rack at Walmart!!) https://www.pinterest.com/search/pins/?q=house%20numbers&rs=typed&0=house%7Ctyped&1=numbers%7Ctyped

Good luck and can’t wait to see the before and after pictures!

(I want to clarify something- at the beginning of my post I said you shouldn’t mix textures. It’s okay to use different textures as accents like having a wrought iron light fixture and door hardware. You just don’t want 20% stone, 20% concrete, 20% whatever, etc. Not enough continuity.)

Post: Inquiries about FHA loan

Account ClosedPosted
  • Philly PA
  • Posts 37
  • Votes 39

Kudos to you for looking that far ahead into your future. 

I'm no expert but basically to get a regular mortgage banks and lenders want you to have 20% of the purchase price as a down payment and you have to have a pretty good credit score to qualify.

An FHA loan is designed to help out first time homebuyers who can't come up with the 20% down payment or have a lower than ideal credit score. You only need 3.5% as a downpayment for an FHA loan as for the credit score you need I'm not too certain. BUT you have to pay an additional fee each month called "private mortgage insurance." Once you build up some equity (equity is the percent of the house you own outright while the rest is 'owned' by the bank) the PMI will drop which will save you some money.

The idea is that you buy a multi-unit property, live in one unit and rent out the other unit(s). You can buy up to a four unit house with an FHA loan. Say you do buy a four unit house, your mortgage is $1500 a month so you live in one unit and rent out the other three for $500 a month each- the rental income will pay your mortgage and you can live for 'free.'

There are very strict rules regarding FHA loans. Certain properties are not eligible for the loan. You must personally live in the property for a certain amount of time- if you think 'oh I can make more money if I rent out ALL the units and live in my friend's basement' its a form of fraud and you can get heavy fines or jail time.

If this is your dream you can start making it happen today. Here's my advice to you. Keep learning all you can. Find a good mortgage calculator online and start playing around with the numbers- for example, did you know if you buy a $100,000 home with 3.5% down and pay on it for 30 years it will end up costing you MORE than $200,000?! That's how much the banks charge you for interest. BUT if you buy a $100,000 house with 3.5% down and pay an additional $100 a month you will save almost $25,000 dollars total and you will pay it off a lot faster. Start saving for that down payment- if you put $25 a month in the bank and don't touch it by the time you're 18 you will have about $1800. I'm not sure how much real estate costs in your area but in my area that's enough for an FHA loan downpayment. LEARN ABOUT CREDIT AND CREDIT SCORES. So many young people turn 18, rush out and get a credit card and very quickly ruin their lives. Your credit score is a very precious thing, it's your reputation with money and will help you get that loan. Credit scores are very easy to ruin and very hard to fix. For example, in the future you might have a buddy who asks you to co-sign on a loan so he can buy a car- don't do it. If he doesn't make the payments it will ruin YOUR credit.

Best of luck to you. Don't just follow your dreams- chase them relentlessly!!

Post: Partners...?

Account ClosedPosted
  • Philly PA
  • Posts 37
  • Votes 39

Not sure which forum this should have been posted in but since I'm just starting out myself it seemed like a fit. 

Is there anybody who has, successfully or unsuccessfully, partnered with another person for buy and hold real estate investment? Not talking about spouses either. I have a friend who's offered to do the renovation work if I buy the property but I'm thinking maybe I should do this 100% on my own. If I did take on a partner of course I would get absolutely everything in writing first. 

Post: Thoughts?

Account ClosedPosted
  • Philly PA
  • Posts 37
  • Votes 39

Here's the short version. I want to buy a 3-4 unit with an FHA as my first home/investment property, build some equity, then buy another investment property, etc, eventually refinancing the FHA and moving into a house with some acreage attached. Got approved for a loan, EASILY (excellent credit score, lots of assets, GOOD income in a stable field-nursing) but I didn't get the first house I bid on, went to bid on a second house and hit a snag with that lender, talked to another lender who didn't approve of my working in home health, got approved by a third lender who said yeah no problem we can approve you for that second property then recanted his statement first saying that he didn't realize it was a multi-unit (BULLS**T. I had a twenty minute conversation with the guy about whether or not each of the three units were metered separately, then I sent him an email that yes, the three different units each had their own electric meters, then I talked to him on the phone about it for another 20 minutes where I specified that yes, three units, three meters, one for each) then they guy tried to tell me that FHA does not approve ANY multi-unit properties (again BULL.) I'm no longer working with this lender- he's either a liar or an idiot!!

SO I lost the second house- its under contract. So I decided to take a break for a while and try again later- nothing sparks my interest in the area I want to invest, I'm hoping there will be more after the holidays. I'm not in a huge hurry- because I will also be living in this house it has to be the right one!! Now here's where I need some opinions.... my main job recently cut my hours. No big deal I have a second job where I could pick up the extra hours OR I can get a new primary job in long term care or an acute care setting which lender #2 DOES approve of. He said if I work for 1 month and show him 1 month's worth of paychecks he'll approve me for almost any property I want under $160k. BUT. I'm very P.O.'d at my employers.... I would like to sue them for partial unemployment. I have a significant amount of money that I COULD collect from them.... but will this hurt my chances to get a loan? Obviously loan officers like to see a perfect employment history but is it better to have a slight gap or to have that big ugly unemployment stamp on my record? Can they even see that? 

I'm not worried about my ability to make enough money to pay my mortgage- there is NO shortage of jobs in my field, and if I can fill one of the other two units that will just about cover the mortgage by itself, if I can fill both units I will already have + cash flow (the surplus goes into a savings account or back onto the principle of the loan.) I also have probably $35k in expendable assets- $20k of which I could liquidate with one phone call but this particular loan officers doesn't seem to care about any of that! He cares about the JOB I have....

Post: If you wish you had one skill....

Account ClosedPosted
  • Philly PA
  • Posts 37
  • Votes 39

@Sylvia B. Abdolutely agree! I've learned how to do a lot by watching YouTube videos, talking to professionals in the field and asking questions and then just jumping in. Getting started is sometimes the hardest thing.

At this point I think I'm leaning towards HVAC. Most maintenance things are not an emergency fix- you have time to investigate the issue, determine if it's something you can fix yourself, maybe call for an estimate, etc but if somebody's heater goes out and it's 3 a.m. in January in western PA that is an emergency fix and it's going to be expensive. Plus I can work on the side answering those late night calls- believe me if I have to roll out of bed at three a.m. and scrape ice off my car it's going to cost you!!

Post: If you wish you had one skill....

Account ClosedPosted
  • Philly PA
  • Posts 37
  • Votes 39

Lots of good insight, thank you all!!

Post: 2-8 Unit Buy & Hold

Account ClosedPosted
  • Philly PA
  • Posts 37
  • Votes 39

I believe you can get a VA loan for as little as 0% down but I'm not sure if there are restrictions on the type of property or if its really an advantage to do so because your payment would be quite a bit higher. It may only apply to first time homebuyers as well so if your friend is military as well then maybe don't partner on the first investment that way you can both cash in on the VA loan?

Personally I've always wanted my first investment property to be solely in my name- just in case the partnership goes sour or there's problems that arise I will have at least one property that's completely mine. (Same reason I'm committed to staying single until I'm INDEPENDENTLY financially secure!) I'm kinda in the same boat you are in that I don't know where I will end up in a few years time but I've found what I believe to be a stable and strong rental market that has an excellent property management company with a lot of years of experience. I'm hoping its the right combination for success.