All Forum Posts by: Sam A.

I just read the sample landlord/tenant lease and rated 5 stars. I see that it is specific to Maryland, but it's a very complete document. Great work and thanks!

I want to thank everyone here for all the great knowledge imparted on us newbs! I just closed two days ago on my first rental HUD(2/1) w/ 2car garage and got a decent deal on it. Had I not came across this website, I surely would have been taken for a larger ride. With 115 DOM, they lowered the price down to 45k, then 37k. I offered 17k cash and they countered with lowest possible amount of 22,5K. Due to HUD's specifications, I had to pay for both buyer and seller realtor fees, but all in all, it ended up at 25k. I believe it will take around 10k and a couple weeks to rehab (with my father and I doing most all of the work) and should rent for 750-850/mo based on comparables in same section of the town. After building up a nice reserve again, I plan to use the rest to finance the next deal.

I have read on here that quit claiming or warranty claiming the deed to a newly formed LLC can have its complications. Originally, I was going to have the LLC own it free and clear and get it reappraised after 90 days and try to get around 60% with a HELOC (hopefully without my name on it--just the LLC on it) to fund another SFR. Does anyone have any suggestions about financing without forming the LLC and doing everything in my name? I know there are many threads concerning starting an LLC vs. not, but I hadn't read much about lending opportunities with these differences. I have been banking at a smaller local bank (town of 3,500) people for 15 years and a credit union for around 10 years. I guess I'll ask them soon, but wanted to know what you seasoned investors had to say about it, if anything. Thanks again for all of your input/suggestions and I will do my best to contribute to anyone else's knowledge as soon as I am able!

I wish I had seen this post a month ago :) we will be closing on our first HUD home in two weeks. It was listed at 45k, then dropped to 32,5. We offered 17k and they countered with "lowest acceptable bid" of 22,5. After both realtor fees (total 2,5) and 1,5 closing, we are looking at 26,5k total. There were a lot of mistakes by my realtor (his first HUD), but we are still hopeful! I didn't factor in the new lick though...thx for that tip! In the end, when they sent us the paperwork, it came out to 69.1% of asking price for HUD (per their paperwork numbers)...so it can be had at a lower % in Minnesota anyway :)

I am looking to buy my first rental property within the next couple weeks. I have found a 2bd/1ba originally listed at 38,900 that dropped to 30,900. It needs about 8k to rehab. I thought about offering 25k and on my way to see it for the second time, they dropped it another 5k to 25k. I now am thinking of offering 22,500. Comparable rents in the area for same bed/bath and sq. ft ranges $650-850/month. Originally my loan officer said 25% down and 5% for 30 yrs with rehab cost included in the loan. Now she says because it's so low, she cannot get an investor on the secondary market to take it, so she wants me to do 25% down, rehab with my own funds, and do 6.5% for 5 years and then refi for another 5 yrs with whatever the rates are at that time. She said now with that low price, it would be an in-house loan much like a car loan. I dont need the tax breaks due to my small yearly income and two kids and full-time school. I want maximum cash flow. Do any of you know of a better option other than asking a ton if banks to carry it for 20-30 yrs at 5-6%? originally it seemed that it would fall into the 2% and 50% rule, but now it doesn't. Any help would be much appreciated as I am writing the offer this morning with the realtor and then talking with the loan officer Monday morning about a pre-qual to attach to the offer and then sending the offer through Monday afternoon. Thanks in advance!

Thanks again for your help guys! I have accepted a position for school for Respiratory Therapy at the Mayo Clinic in Rochester, MN where my house is/was for sale. I will pull it off the market and move back in. Having the home there and working and going to school all within 2 miles of each other will be better than then the $800 extra I pay each month for rent/storage/gas. I have decided to use some of my savings and buy a distressed SFH. I went and looked at 5 today (after reviewing many) and one in particular seems to be a decent choice. I am crunching some numbers tonight and tomorrow and will see if the loan - down payment + rehab cost will fit in the 2% rule. As it sits now, as long as the rehab is under 15K, the house should be ok. Rents for 2bd/1ba that are similar in that part of town go for 650-850 and 2% puts me around 618/month, so I am getting the butterflies in the stomach about this number crunching...hoping it will pan out. I'll keep ya updated as I come across any major problems or details. Thanks again for this site...I check it a couple of times a day now just about every day--you guys are awesome!

Thanks for the clarification Vikram. It isn't good for renting and/or cashflow. That's kind of why I am leaning more toward a sale...but that sale will set me back 10-15k. Hard lesson that shouldn't happen again. Curb appeal means very little to me now that I've learned a little on this site ;)

It's a great deal Vikram. I had 90k in water damage last year and insurance paid for all of it minus 1k deductible. All new hrdwd flrs, bath/kitch/all walls/appliances and floors/plumbing/elec/water heater, etc. The roof (still good) and stucco (still good) is the only thing in the house that pretty much isn't brand new. I only want to sell because it's layout lacks renting ability...or my imagination for renting it does anyway:)

Thanks Jay and Chris. If I do a land contract and use their down payment to me to buy a duplex, can I show that to the bank so they can free up my liabilities (current home) more so than a rental contract? I may not be understanding, but my lender won't loan me any money unless I have gotten rid of my current home or I have someone in there renting for at least 2yrs. Please explain if I am not understanding you exactly. Thanks!

FMV around 120-135k. Thanks for the info Mark. All 3bdrms on upper floor, so that makes it a one-family deal I think. I asked my banker about refi and then rent, but they want it to be my primary residence if I refi and i won't get 1100/month as is. Maybe 800-900/month. Even if I ate 200-300/month, banker said no loan until 2+ yrs rental history--which leaves me renting for the next two yrs (which I don't want). I'm not familiar with lease options or contract selling. I'll look into that. Any more advice would be more than great!

I bought a 3/2 in 2005 and recently started renting an apartment while going to school 100 miles away. I owe 130k on home and have it listed for 124,900 and have been lowering for last few months. My plan, after reading many threads on this site for the last month or two has led me to originally sell old home and buy duplex/triplex with VA home loan.
Now...I have been accepted to a different school program back in my hometown. Question I have is this: Do I move back into house and try to refinance (original at 6.25%) and wait until bluer skies...or do I still try to sell SFH and keep looking for good deals on duplexes in hometown?
My wife and I have enough money to keep paying mortgage and rent and will continue to have that, but I don't want to keep eating 1100/month on an empty house that may not sell. After realtor fees, etc., we are already expecting to eat 10-15k just to sell it. Is it worth it? Thanks for your time and I eagerly await your responses :D