All Forum Posts by: Jimmy D.

Hi All,

I am currently looking to invest in this investment property in the Binghamton NY area, mainly to rent to college students. The numbers seem to work, but of course I could be wrong. Any advise would be greatly appreciated.

purchase price $78,500, doing a 25% down 30year fixed mortgage, (should be below 5%) at current market. got quoted 4.5% on 10/10/14. taxes $3821, insurance $800.

2 family house, 3 bedrooms on 1st fl, 3 bedroons on 2nd fl. second floor rented for $975 till May 2105. 1st fl vacant. potential rent for first floor can be $650-$750 due to one bedroom being very small on the first floor.

Sewer is $600/year, I believe tenant pays all other utilities. Property management will be 10%.

I believe this is a good deal. then came the home inspection.

Foundation- bowing, inward, up to 3", South side of roof needs replacement, and a bunch more. I understand that this house was built in 1910, and do not expect that it be in great condition. I got a quote for some of the items to be fixed.

All prices include matieral unless specified.

Tear off and replace front porch roof $800
replace broken tile in 1st floor bathroom, sand, install new tile, groat, seal. $200
Properly install exhaust and intake vents to 1st floor furnace $120
Install non permiable matieral around exterior foundation and slope away for water drainage. $400
Install gutter down spout $75
clean gutters $120
Insulate basement ceiling $30/hr labor rate ***plus matieral***
Seal all gaps on furnace ventiliation ducts $100
Installation of continious ridge venting. $1200
remove 1st floor bathroom ceiling inspect for mold and water damage, install new sheetrock, finish, and paint $650
Additional cost based on extent of plumbing repairs needed. at labor rate of $35 per hour
Install 2 glass shower doors 1st and 2nd floor bathroom showers, $140 plus cost ****$150-200 per shower door****
replace broken/missing glass in attic window $60
replace broken glass in basement window $40
Replace front porch ceiling $600
Install drain pan and waste line from 2nd floor hot water heater $160
extend sewer ventiliatin line thru roof. $300
correct 1st floor shower water lines by reversing the cold and hot water. $150
Run electric for condensation pipe in basement $120
Run drain line from condendation pump into waste water drain, $70
Replace all attic duct with flexible insulated duct. $6 per linear foot
Mortar interior section of chimney inside of attic $400
Mortar exterior section of chimney $600
secure all loose electrical wiring in basement $85
Tearoff and replace south side of main roof, $4400 Additional cost may apply if board replacement is needed due to rotting or broken boards.

No quote on the foundation yet. Which is the part that worries me the most, because I am not familiar with this. If the quote for the foundation is under $3000, will this problem continue. I am worried that this will continue to eat away at profits.

I still like the location and rent numbers but worried about the foundation. Buy or Pass?

Sorry for such a long post.

thank you everyone for the advice

we closed on the house this week. $94000, 25% down payment, 5.375% 30 yrs fixed, with 0.25% rebate. closing cost was about $4000.

this house is in las vegas, and im not familiar with how it works there, but the title company said it has been recorded. is there a deed involved? or just the recording. or is it sent to the bank because i have a mortgage? the reason i ask, and not ask the title company or bank, is as i stated on my first post, it was supposed to be put in a llc but changed to my personal name. but on the document forwarded by title company. it says buyer " xxx xxx llc"

this is great for me because this is what i wanted. if it was in my name i would have put it into the llc a few months later. so less work for me.

i think what happened was the title company never received the info that the loan was changed from llc to personal name, and recorded llc name. but the loan was not supposed to close in llc.

no records in county yet, maybe it takes some time before update.

so do i need to be worried, or just leave as is

as a real estate investor that wants to buy and hold for rental income, would it make more sense to pay points to get the lower rate on the first property or save the money and put it on the second house's down payment.

hello everyone, im new to this forum. sorry to start off with a problem, but this came up out of nowhere.

i am investing in a rental property in las vegas. i went to chase for an investment loan with the title to be held in a llc. they said it was ok, as long as i put 25% down and have a personal guarantee. and a slightly higher rate.

i went into contract with a property for 94,000. we did the apprasial, and waiting for the report. my loan officer said 2 weeks ago, everything is fine as long as the report doesnt come back less than 80,000.

this week, she just called me, saying chase has just changed their guidelines, and cannot close with the entity own. and can only cancel the loan or change it to personal name.

this is my first property, and i donot mind it being in my personal name, but then i would rather not pay a higher rate. the rate right now is 5.375% on a 30yr loan. any advise?

should i continue with the loan in my name, or start a new loan( of course if it is a lower rate). but i have in contract to close before nov 15. a new loan might not make the deadline.

does anyone know the rate right now, so i can compare. of course i would not start a new loan if the rate is only a small difference.