All Forum Posts by: Account Closed

Will do, thanks for the welcome.

I wouldn't recommend using the peel & stick stuff unless it was just a powder room (vanity & toilet only). Water & steam generated in bathrooms from showers may cause the tiles to separate & lift from the floor.

A good alternative would be to use "sheet vinyl". Home Depot offers 12 ft wide sheet vinyl flooring in updated designs for a decent price. There are fewer seams for water to seep through and the corners will be held in place by the baseboard around the perimeter.

But to answer your question, you could probably just take pointers from a regular ceramic/porcelain tile video. Instead of using a tile saw, you would basically use a utility knife to make the cuts.

Yes, I'm somewhat new to landlording. I've owned the duplex for 2 years; during that time I lived in one side and rented out the other half. So technically the lender can only look at the rental income from one unit. Even though I recently moved into the condo, the income generated by the new tenant doesn't qualify because he has only lived in the second unit for about 6 months.

I haven't fully shopped around yet because I was looking for initial feedback to find out what lenders typically look for in my situation.

My debt to income exceed the bank's guidelines so I'm trying to find other ways to raise capital to acquire additional properties. I don't have any issues with my credit or anything, they were just basing this on my DTI. Home equity isn't an option since my primary residence is a condo (which banks refuse to deal with), and I couldn't use my duplex because it's no longer my primary residence. I'm trying to do this on my own and would prefer not to team up with family members etc.

I used a management company that allowed unsupervised showings from a lockbox. They were liable for any damage or theft that occurs to the residence, but it still leaves you with an uneasy feeling if you allow yourself to imagine worst case senarios. It does allow a potential tenant to visit the property at their own convenience - actually my current tenant visited the property after work late one night. It would not have been possible for the PM to show the unit after hours and it saves both parties from hashing out appointments.

Actually my current tenant has been great and has lived there for 3 years now. I say this to let you know positive outcomes are possible from that senario. But it could also be a red flag that the company has too many properties to oversee. I no longer use that company as they were "too hands" off for my liking even though I was only being charged 8%.

Welcome Roger!

I went through the same thing while looking for lenders who would finance condos... many lenders were unable to finance condos based on their underwriting guidelines especially if the community is not FHA approved (which many aren't due to high % of investor ownership & delinquency on HOA dues).

If you manage to find an elusive lender, I've heard that you will need a much higher down payment than 20%.

As an alternative, have you tried searching homepath listings? They're REO properties owned by Fannie Mae and the site provides lists of lenders who will service homepath loans. 3% down for owner occupants and 10% for investors. No appraisals needed. The key is to act quickly and get pre qualified beforehand, as most desireable properties will get multiple offers.

Good luck & let us know if you find a lender.

Thanks for the welcome Ron. I recently met someone who took one of your RE classes. Small world...

I've come across BP numerous times while researching RE info, but I was unaware so much more was available beyond discussions within the forums. I'm still working on delving into the archives. And listening to the podcasts... they're all informative but if I had to choose a favorite so far - I think Karen's story is just amazing.

I've worked in the medical field as a hospital pharmacy tech for 10 years, but I've always been fascinated with old architecture, historic homes and neighborhoods. For some reason, after all these years of not knowing what I wanted to do, it never occurred to me that I should pursue REI.

My retirement acct took a significant hit during the Recession but it eventually returned to it's original balance but experiencing the loss got me thinking... I'd rather be left with something tangible during the next market downturn so I decided to "diversify" and apply some of the funds towards REI.

In 2010 I bought a duplex with an existing tenant & management company in place. This worked out perfectly because the MC had already vetted the tenant, and the empty unit I was moving into needed a ton of upgrading. Even though we got off to a questionable start, the tenant and I actually became friends. The renovation itself was semi-hell and I also had to deal with an undisclosed & seemingly unsolvable rat infestation. All is well now, both sides are rented and income producing and I now manage the property myself since I was doing most of the “management” anyway. Surviving that ordeal and dealing with yard work etc made me realize I preferred condo living, so I purchased a foreclosed condo with a great view in 2012. Very happy with that decision ;)

Both properties are in great locations with high rental demand; although, neither property meets the 2% rule (though the condo could fetch closer to 1.6%). I have never seen anything in my area that could fit that rule, but it would definitely be a steal. My current strategy would to buy and hold SFRs and multifamily properties, but my interests will probably change over time. I would even consider commercially zoned properties just to further diversify things.

At this point, I kinda feel like I’m stuck – banks say my debt to income exceed their guidelines so I’m trying to find other ways to raise capital in order to acquire additional properties. I’ve watched quite a few deals float by in front of me as I try to figure out how to get from point A to point B. I'm a single guy trying to do this on one income and I really don't want to team up with family or friends at this point.

I'm basically looking for mentors & advice. I would even be open doing some grunt work for an experienced investor in the Orlando area in exchange for mentoring. And it would also be great to connect with any lenders who deal with creative financing.

Yeah that was a long-winded intro lol. Thanks for stopping by!

Have you tried REO listings like Fannie Mae (homepath.com) or Freddie Mac (homesteps.com)? I see NYC properties on there all the time and investors only need to come up with a 10% down payment in most cases. I bought my last property here in Orlando through homepath. The interest rate is a little higher, but still worth it especially if it's a condo which most banks still aren't lending on.

The 35k gift would be okay if it were a gift, and you would have to provide documentation signed by all parties stating so. If you were expected to pay the money back it would then become a part of your monthly "expense", therefore affecting your DTI ratio that your lender is basing your mortgage on.

Are you sure you want to team up with family members? Money can definitely put a strain on relationships. Just make sure you're all on the same page. I almost did the same thing and was very surprised to find out that my family began sprouting alternative goals for the property than what I had intended, and they even began referring to the property as their house lol. Thankfully the deal fell through, but that incident made me realize that I'd prefer to just do this on my own ;)

I'm pretty sure banks are required to report any deposit over 10k to the IRS. Due to the debauchery that took place during the real estate bubble, many lenders will request statements beyond 2 months.