All Forum Posts by: Carini Rochester

I believe they would pay any income taxes owed as the principle gets paid down. The two out of the last 5 years would at the time of the sale. No need for balloon payment for that reason. The sale happens at the closing, not years from now when they receive their final payment.

Zoom out in your Zillow search to include other similar towns within 75 miles. 

If that yields nothing, then go back to what you thought you might get for rent when you did your analysis. Add something to that $50, or 100 or 150, and advertise it. You can always lower the price if you get no action.

Ask your banker, your lawyer and your CPA. My guess, that from the bank's point of view, this is way too complicated and not what they mean by 'owner occupied.'

Nicole, Please explain more of what you mean by 'investing.' Do you want to be general contractor who builds net zero houses for clients? Do you want to buy stock in a company that makes solar panels? I design net zero houses so I know a little about the single family residential market for net zero construction, but I don't know what role you are envisioning for yourself.

Thanks for sharing your story, Kurt. Sounds like you're going to be very successful! Once you're done with the house you'll have time, money and know-how. Brandon says you only need two out of those three to be a successful real estate investor. That part of the country is certainly very beautiful and close enough to large cities to have a vibrant economic engine. I'm sure you'll do well. Attach a couple of pictures of the house and property.

Rates depend on your credit score, the type of property, investment or owner occupied, length of term of the loan, pay points for lower rate. Most conventional rates right now range from 3 to 5. Call another bank and ask their loan officer. Based on info you have given, I don't think anyone can answer your question very accurately.

@John Teachout I'm sure it varies by climate. My area in New York State gets a lot of snow, and therefore ice damming if we don't take steps to keep the attic cold. Probably not as big a concern in your area. Probably a bigger problem in the Twin Cities even than here. 

Would you mind providing a little bit of math of how you are netting $525/mo.? What does it rent for? What's the mortgage? How much are taxes? How much are you figuring for maintenance, repairs, cap x, PM?

Thanks, and congratulations! 

I assume you've been saving like crazy this whole year. Your housing expenses must be quite low since you are living in the small unit and renting out the big unit. How close are you to having a down payment for the next purchase? What is the After Repair Value (ARV) of the property? (After repair and after one year of what must have been pretty good appreciation, I'm guessing.) If the current value of the property justifies it, you go to a bank and apply for a refinance. Take your savings plus any money the refinance generates and go duplex shopping. I assume the next property would be your primary dwelling again, so you would get another FHA loan, I think.

Do you have 2d drafting done, or can you provide all the measurements? I'm checking a couple leads I have, but they won't be local to Louisville.