All Forum Posts by: Brad Fausett

@Natalie Schanne  -   So i have talked this over with my lender a few times.  I am told, that if i pay cash, i can do whats called a reverse mortgage for 100% of my purchase price, closing cost, updates not to exceed 75% of the appraisal value.    By doing this I am able to ultimately leverage my cash to reduce my investment into the property. I am confident the property will appraise for 75-80K on the low side.  I am buying it for 55k and expect to put 3-4K in before having the appraiser out.  

@Federico Gutierrez @Bob Collett  Thoughts on the above?

I agree John.  Either way, I welcome the program.  We are specifically targeting Section 8 with our rentals now, so the inspection process will just be the norm.

Thanks Everyone!

@Account Closed  

According to the article:

What if landlords refuse inspections?

The city is counting on most landlords allowing the city to conduct the rental inspections. If a landlord refuses, the city will inspect the outside of the home and issue notices of violations, if any are found. The city then is able to ask a judge for search warrant to to enter a home but does not want to do that for homes that are occupied, if at all possible.

I am curious to where you guys think I am going wrong.  Here are the 2 deals i am in contract currently on.  I have verified rents and on both units, I am realistically about $50 per unit low.   I verfied the rents based on Realtor, Hotpads, Rentometer, Gosection8.    One of the homes is on West Blvd near 90 and the other is right between old brooklyn and clark fulton area at 71.   

As for the idea of 6 months rent for reserves?  I like that, but I want to make sure I have enough set aside for furture needs.   Both house have newer roofs and mechicals.  West Blvd needs windows and will be getting them shortly after closing but otherwise both units are in top shape and need nothing.

Thanks Jeremy.  How long did it take for you to close on your property?  Should i expect weeks or days?

So I found that it is going to be advantageous to me to purchase one of my new properties in cash, I am going to take a mortgage out in a few weeks later after some updates are completed to leverage the banks and keep my cash availabe for future purchases.   

 With this said, I have never bought a home in cash.  When I let my realtor know tomorrow this is my approach, how do I get to closing?  Do i need to call a title company or an attorney to do the work?  I have no experience other than working through a lender and showing up to the closing table to sign papers.   Can you advise?

This is interesting, I wonder how many of the landlords will willingly allow the city to enter.  I can see this becoming a major issue with the court system.  The judge will get tired of issuing search warrants due to owners denying access.   On the other hand, I am all for providing safe and quality housing.  The ideaology of slumlording is something that I particulary dont care for.   There are alot of homes in this city that I seriously doubt will pass the inspectors test.   For those who dont care to provide quality housing this very well may be their exit time.   Thanks for posting @Bob Collett!  

Bob,  Thanks for the information.   I was not familiar with the clear reads program however i just read through it.  Thanks for sharing.  I will be sure to sign up for it before our first tenants move in.