All Forum Posts by: Chris S.

I have a two family worth about $550K and $200K left in principal on the loan.  Rate is 4.875% and with BofA--with fifteen or so years left of payoff.  I'd like to refinance into a 15 year loan but looking for best options of lenders with lowest rate and maybe any that don't penalize for it being an investment property.  Any ideas?

thank you @Brie Schmidt!

hi @Brie Schmidt  -- quick question i'm on rentapplication.net and it looks like it charges $20 for an applicant--is that right?  i would like to just be able to have ability for folks to send me online applications and then only charge those that I deem worthy for background check.

Brie--those are great responses and super helpful.  Thank you so much..

Been owner of a two family for about ten years.  I have never (knock on wood) had the apartments vacant--mostly due to location (walking distance to subway in boston) and affordability.   Over the past, most of my screening has been gut feel---and one simple call to their previous landlord to get a feel for their past rental experience.   Has served me well for the last ten years--but in my one non owner occupied unit on the first floor--has been an average of about 2 years for each tenant--since i've tended to rent to younger professionals.  It's been very solid as for rentals but i've found that there is a bit of a two year revolving door.

Few questions for the crowd here:

1. Do you target a specific type of individual or individuals?   I've opted for young professionals without kids--just because of the fact that they typically aren't in the apt all that much --less wear and tear in my mind--and less water usage.  Curious what others think.

2. I seem to get inundated the first few days with responses once i post a listing--which is happening now.  Anyone have an online solution for screening applicants that might be helpful?  I've typically relied on pen and paper old school applications but this seems to be a thing of the past.

3. Credit checks?   Do you do them?  I've never--again it has always been on gut and me having an understanding of the sort of job the tenant has.  Application gets more info on income etc so that provides some insight.

Anyways--thanks in advance--feeling slighly overwhelmed at the moment with my unit up for rent and only one month notice from my last tenant.  UGH.

Thanks all for the great responses!

So, as I mentioned we just purchased a new single family home a few months back.  So it sounds like we would NOT be able to use the proceeds of the sale of the two family against the mortgage on the new house--without paying taxes on the gain---is this correct?

This is my second post, so forgive me if I don't provide all the necessary useful information for you all to help me make this decision.

I bought a Two Family south of Boston in 2006 for $385K.  It was in bad shape and put about $40K in it initially for renevations.  I've lived in one unit with my wife for the past 7+ years.  We recently purchased a new single family home nearby and are considering selling the 2-Family.

As for stats--

Gross annual rent: $37,800

Operating expenses: $13,062

NOI: $24,738

I've got about $225K left on the note at about 4.8% so after debt service, its cash flow positive to the tune of $400-$500 month.

Never had any problems renting it, in a great location, but it's old (1930) and constantly needing attention.  Just spent another $15K or so on a new roof, electrical etc.

I think i can get at least 650K for it.  With a 4% commision looking at proceeds of 625K or so.

I wanted to use the cash to payoff the bulk of the mortgage on our single family we just purchased.  I just want to be able to live without worry of a mortgage payment and invest where I see fit (stocks, maybe more real estate some day).  I work full time and don't have the time or the patience to manage a property.

I think its a good time to cash out.   My biggest question involves taxes.  What are my consequences if I sell?

I bought a 2 Family home in the Boston area 7 years ago for $385K, putting roughly $40K into initial repairs.  I think I might be able to sell it today for between $600 to $620K.  Rents for both units total about $3000.  My current mortgage is about $280K, so if i sold at $620K, i'd clear $340K cash.  The issue is that my wife and I are looking to buy a single family and could do so without selling the two family, but it would be tight.  I'm tempted to sell at where I think the market is kind of peaking a bit and use for a newer house for our family.  The two family was built in 1930 and even as is needs a new roof and electrical repairs.  I feel if i kept it, I'd have to keep putting money into it.  My thought was to take the extra $1000-$1300/month saved from having a bigger down payment on a house and using it to invest in an index fund.  Over 30 years at ~7% that would be $1.6 Million if I invested 1300/month.  What should I do?

I own a two family---live in one half and rent out the other half.

I have losses on the rented half -due to expenses , mortgage interest, etc exceeding rent.

My accountant tells me that i can't deduct this loss on the rental due to I and my wife's AGI exceeding the limits.

The accountant is only deducting half of my mortgage interest on my itemized deductions.

Can I move the other half of mortgage interest (from the rental) to my itemized deductions?

Thanks!

Thanks Steve, great post! So i've been able to access public records online and have determined that there is one outstanding 1st mortgage for 395.5K which was taken in 2006 as a 30 year mortgage. So i'm guessing there is still at least $380K+ left on the loan. But in the public notices database i don't see any other liens. Would you still recommend running a title search?