All Forum Posts by: Benjamin Seibert

Hey Roselin. This could be a variety of different items. I worked as a geotechnical engineering intern for a year and performed many inspections on cases such as these (following behind a licensed engineer). A couple the most common issues are as follows:

1) Contractor back filling up against the foundation without installing the first floor supports. Most contractors will do this even though many contracts warn against it. Without the first floor being installed there is no bracing for the foundation wall to rely on and it can easily crack. 

2) Improper drainage. Incorrect drainage is the issue for many older homes having foundation cracks as the added pore water pressure from the rain creates an uplift force and can cause differential forces on the foundation (a foundation's enemy is not always more force but it can be less force to retain the foundation as well).

Just know the wall wont crack on its own. Forces are being applied or taken away either on the inside, outside, above, or below. It may help just to take a look at everything and see if there is anything that jumps out to you (if it looks incorrect, it may be incorrect).

Note: there could also be bracing inside the basement pushing out on the walls if it was incorrectly set.

Vamshi, depending on your area you may be able to get a conventional loan with even less money down. For my first property (that I am still currently house hacking) I got a 3.5% conventional loan. There is PMI on the property until a certain equity threshold is met (I forget what the exact number is on the loan though).

The market is ramping up quite quickly, especially with rising interest rates. So this may not be as easy to attain from lenders now.

Jason, it's definitely possible it just depends on the area and the numbers. Every property is different depending on how much it will rent for and how much you purchased it for/the mortgage. Don't stress over vacancy though (unless you're in a deteriorating market). As long as you properly screen tenants and set up the lease properly it will work out. If you're really worried about the vacancy you can find a reliable property manager, which may help.

@Sean Haardt Thank you very much for the follow-up and tips. Yea, Middletown Valley Bank seems to be really pushing for large projects right now so they may just be focusing more on the large commercial side. I also contacted CNB Bank as @Bill Kenny recommended (and my cousin had recommended them earlier). Their rates were lower than the ones MVB quoted me.

@Steven Bates Unfortunately, depending on where you're at in the country the rates have risen. I was quoted 6% with .8 points last week from a lender (and that was the best rate I've found so far near me). From what I have seen, the rates tend to be higher for non-owner occupied so this will hurt as well. I would call as many different lenders as possible in your area to get quotes from them. Usually, it just takes a quick call and then a follow-up email with what you're looking for. I have had the best luck from credit unions on numbers, but be aware these numbers do tend to fluctuate more so don't be scared off from a couple high quotes (I was quoted 8% from one credit union and 5.5% from another in one day... a huge swing).

Hey Zackary, you have unlimited options in the situation sitting where you are at 18. I'll give just one idea of a possible route to take and I'm sure others will provide different ones:

You could house hack the house you own outright (renting out the other two bedrooms for a profit on your home). I am currently doing this with three other friends and it works out very well. They pay the mortgage and my utilities (essentially living and owning a home for free - in your shoes you would be cash flowing).

Then, depending on what you are doing for a job (or college), it'd be good to establish yourself at work and save enough for your rainy day account (savings in case you lose your job) and then start saving more for a rental property. Depending on how much you can save and cash flow from your career/W2 income and house hack, you may be able to purchase another property in your first year. Or, you could pull the equity out on the home you own through refinancing and put that equity toward one or more rental properties.

The world is your oyster at this stage. Just stay focused and start investing early, it will pay off later.

Let me know if you have any questions about this.

@Dominic Courtney it has been good. It is difficult to find great deals anymore but that's a lot of places.

 The markets have heated up a little too much for my liking though recently. It's a more of a cash flow area with little/moderate appreciation. Properties are being purchased at overly high numbers for the area and the DOM are minimal. I am becoming  wary of it along with the overall market. In my opinion (take it with a grain of salt), the Hagerstown market is currently being purchased at a higher rate than is sustainable. Many see it as a sign of an area uptrend, but I just don't see the necessary population and jobs increase nor downtown revitalization to warrant this much of a rise.

Note: sorry this may be a little more long winded than you were looking for.

@Bill Kenny thank you for the recommendations! That definitely helps!

@Brian Leon yea, we have made some headway. Unfortunately, not as much as I would like but I always push to get almost too much done.

Yea, I definitely agree with your hesitancy concerning the due on sale clause. You could possibly contact the lender and ask them about this and if they honor it. If they were truly going to take action against you on it, it may help just being forefront with them about it and asking. Or, possibly finding an investor near your market who has done it and see what they have to say.

Thanks! I live outside of Baltimore, MD, so if you're ever in this area the same applies to you.

@Justin Norman Yea, you can do it that way. I occasionally have free time at work and use google maps to "drive" around the particular areas I'm interested in and find potential properties there. Then. my county has a website that has the deed and contact information for the owner of the property. To save yourself from taking the time to do this , you could always just purchase lists of non-owner occupied houses in your area using a website like listsource.