All Forum Posts by: Nicholas Weckstein

I see your point, I mean the place is cash flow positive as I knew it, but when I saw higher rents and other off things I was just confused. I was thinking it would be accurate at least lol. 

I will try to do something to lower my flood insurance. Any suggestions ?, I've seen the map and the flood zone touches the front lawn of the property. I have to just renew the elevation certificate which should help 

As per guidelines, I live to far to manage the house I'm buying myself, I need to get a property manager, it's a 3 unit. 

Can anyone give me a recommendation ?

hello everyone, been a while since I've been on here.

After a long time of searching I'm currently under contract and closing in about 10 days, A few days ago i was reading over the banks appraisal report and I found some major discrepancys. First I'll start by saying the house appraised for the sale price.

My issues are, the house has 3 units, a 3 bed 2 bath, a 2 bed 1 bath and 1, 1 bed one bath. The report states that it's a 3bed and 2, 2bed....which to my knowledge it is not. 

Also the income section says that the rents across the board are higher than I know them to be...

The bank tells me it's in a flood zone, the appraisal says it is not. 

These are the big ones their are a few others.

I guess I'm asking how should I handle this, on one hand if the rents are higher than I was told by the seller than I'm happy but if they are not and I make a fus with this report, maybe they order a new one, and in which case the property value goes down. 

My main concern is the flood zone because that is costing me a pretty penny.

Thanks in advance 

PS the property is in Wilkes Barre, PA

yeah being from new york, as a friend put it, has me brain washed. im not ever going to see appreciation in scranton like new york has. im just looking for a stable place to make some positive cash flow and hopefully maybe in 30 years make some money if/when i sell. just worried about the market tanking. may buy just outside of the city. @Timothy Maloney

okay so sorry to everyone that i haven't been on here to update a discussion i had going, been working like crazy lately.

at any rate,

i'm ready to buy in Scranton PA. as i was doing my research over and over as i usually do for constant reassurance. i came across some very negative things about the scranton area and am now concerned. 

i've seen that they are bankrupt, 200+ million in debt. ive read things saying its a dying city. i've even read something comparing the area to detroit.

all of these things make me very nervous to buy in the area.

so id like to hear from anyone who, either lives or invests their. is it declining ? do you think it will come up ? maybe a government bail out? future growth ? i still feel and have always felt that being a big city, with a university, hospitals, an airport, and not so far from NYC.  that it has potential in the future for appreciation. 

any info would be helpfull thank you !

good information thank you...

in my case im not working with an agent as of yet, im only pre approved, and working with a lender. ive made some calls today and reached out to agents to get the ball rolling. 

i do need to take more time to study and understand the closing process because it is a confusing one and i will not go into it with my eyes closed.

i do know that my rate would be a bit higher if i chose to not escrow but maybe ill just pay a point, @James Mc Ree

seeing as how im not yet in contract with any property or even talking to a seller, i would like to have the seller pay what i can get them to pay. i want to keep as much in my pocket for reserves and repairs and vacancies if i can

yes just got off the phone with my mortage person. she told me the same, that its very easy to buy under an LLC. she informed me that i can buy in my name and immediately transfer to my LLC. or that i would have to buy under a new LLC bc they cant put the house in an LLC that is not related to the business. so that being said i will probably buy in my name and just transfer it to my LLC.

she also informed me that the seller can pay 2% of closing costs. and that if i didn't use an escrow account with them that it would take the closing costs down to about 7300. and if i had seller pay 2% it would bring it down another 2900, bringing the number down to 4400, which i am a lot happier with

i don't feel the need to keep tax and insurance money with the bank just so they can make money off of it and constantly require more money. im very good with finances and would have no problem setting aside money on my own

@Adam Guiffrida @Mark Swim

well i will not invest near a flood zone, and taxes are a little lower than that, a little under 3000. 

i think scranton is a great area to invest. anybody have any things that i should watch out for?

i don't have a specific property yet i wanted to secure financing first. 

now in regards to buying under the LLC, how difficult is that ? does that require a complete re look at my financials again?

will i have to convince the seller to split these costs with me ? or is it standard. ?

as always thank you to everyone for lending advice it is extremely appreciated 

@Adam Guiffrida 

@Account Closed

yes im going to certainly ask for a break down and see if they can do anything to bring that down. maybe get pre approved else wear and see the difference and maybe they lower it @Jayson H.

@Wayne Brooks i was under the impression that its of the loan amount so in my case it seems more like 10%. im considering not using and escrow account with them and handle it myself...if that makes the difference of 3-4k...i still have to iron some things out

so i'm approved by wells fargo for 145,000 with 25% down. my rate is 4.875%. buying in the scranton PA area. paying no points. and here's the kicker which i feel is insane...$10,059.86 for closing costs and prepaids ?! why does this sound like way to much. 

can i haggle with them ?

also i have an LLC in my name was thinking about buying it in my business name. benefits to that?

ive also been told by countless people to buy as an owner occupant and put less down and save my money....im not sure i like the idea of doing that because i wont actually be able to occupy until around 2018