All Forum Posts by: Carini Rochester

Seller financed (probably) won't be reported to the credit bureaus and so won't impact your credit score at all. Conventional will be reported. You can have multiple conventional mortgages and have a great credit score as long as you don't pay late or get too close to the maximum debt to income ratio.

Concentrate on increasing your earnings rather than on not paying off your debts.

You cannot use comps to determine basis. It's what you paid, minus the value of the land, plus what you spent on long term repairs (roof, furnace, etc. (Capital expenses.)) Repairs and maintenance could be expensed. Use IRS instructions to understand the definitions.

Real estate loans are taxed as you pay down the principle, not when you borrow the money. So the money does get taxed, but gradually. The stepped up value of the real estate doesn't get taxed as it remains unrealized gains to you and your heirs get the stepped up basis.

@Matthew Drouin  @Greg Scott

Matthew, thank you for your great work here in the Rochester area. Greg, nice observation . . . "Any rational landlord will double or triple their screening efforts because nobody wants to accidentally put a deadbeat in their property."

Get the bank financed property first, while you have the DTI. Buy the owner financed property second. Owner shouldn't care about your DTI. The owner should look at it more like a DSCR, and should be pricing the property and offering terms such that the income from the property is adequate to pay back the loan.

Great work! This is very encouraging!

Perhaps you mean, what would it be wise to know about the property. If you are getting financing, the mortgage company will need to walk the property for an appraisal. Your insurance company might want to look at the property. 

It would be wise for a buyer to feel confident that the building is in good structural condition, that it has a certificate of occupancy. That no additions or remodeling was completed without a permit. How are the utilities billed? Are there separate gas, electric and water meters for each apartment? Are there separate furnaces, AC, water heaters for each apartment. What's the life expectancy of the roof, paint, furnaces, water heaters, etc.? I do that inspection myself because I know a lot about small residential buildings. Many people hire an inspector.

Call the town/city hall. Ask for the zoning department.

Get on 390 and exit in the Rochester area.