All Forum Posts by: Christian Bors

I would still get title insurance.  I used abstract land associates in Camp hill on market st.  If you want more info, spend me PM

@Richard Anderson I believe there is a box on a conventional mortgage application that asks if you have applied for a mortgage recently. And if so, what were the results. I'm not sure if it will really makes a difference because when you apply for the heloc, the mortgage rep will still evaluate your DTI. You might be restricted to a lower amount HELOC if your DTI is high. However, I am not a mortgage rep. You should ask your local rep.

@Richard Anderson Yes, the mortgage rep will have to pretend that the LOC is maxed. Helocs have the interest only option so the payment will be smaller. However, it will negatively impact how much money you can borrow since it will increase your DTI ratio. With that being said, I am a huge fan of HELOC's. They are great for down payments, rehabs, repairs, etc.....Pretty much anything that requires short term capital. I personally would accept the HELOC. If you are not happy with the appraisal, you could go to another back and go through the process again. Most banks charge $0 to a couple of hundred dollars to set one up.

And like @Cooper Bert said, don't invest in the city.  Taxes are a killer.

 Loaded question.  But I would say its not too difficult to achieve the 1% rule in this area.  I personally would not buy anything less then 1.3% I try to aim closer to 2%

@Amit G. I think you can see some very good returns in this part of the country for rentals.  I just sold my first flip a couple of weeks ago and bought another last week.  I plan on doing several more flips this year, but I prefer the rentals.  Everyone always talks about the midwest as places for great rentals.  I think this area gets over looked very frequently.  Especially on the west shore.  Good schools, decent taxes, hard working people,  and government employment.  Sounds like a stable place to have rentals.

@Sean Cole If you are looking for a big bank to hold Solo 401k funds, I know wells fargo will.  

If you prefer smaller banks, speak with the branch mangers.  

@Amit G. I don't understand what are you bringing to the table? If this guy is already experienced and does this full time, why does he need you? How much capital are you bringing? Do you have a couple hundred to invest or just enough for a down payment? Despite what the GC is saying, flipping is hands down more risky. Even if you bought a POS rental, chances are in 20 years it will look like a smart investment. If you buy a POS flip and lose 30k, you might be sitting on the sidelines for a while. As mentioned earlier, there is a lot of competition in central PA. Deals are hard to come by. There isn't much on the MLS that's for sure.

If someone is already proposing a partnership and you don't even know the guy I would be very skeptical.  Even if your best friend recommends him, why doesn't your best friend do flips with him.  Too many red flags for my liking.  Be careful!

Also, you should come to the CARPOA meetings in camp hill.  Check out our meet up page or reach out and I can give you more information.  

Cheers

CB

@Henry K. Owner occupied properties have the best financing.  There is a local bank in my area that will finance 97% no MI, low interest rate, and give a 1500$ grant depending on the area of the property.  Most banks will require 2 years of rental income before they will count it on your tax returns.  If you are just starting, you should borrow as much as you can for as long as you.  Over 20 years everything becomes a good investment.

If you use a HELOC, just remember to calculate the monthly payment when you run your numbers!

Sometimes you come across appraiser that don't do their job well.  I had a similar issue a couple of years ago.  At the end of the day, suck it up and move on.  Its not worth getting all worked up.  Chances are you won't get your appraisal fee back.