All Forum Posts by: Christopher Nerio

Hey @James Wise I just listened to your appearance on the BP podcast, great stuff! I live in Northern Va where investment properties are pricey. On the podcast you suggest that I get familiar with my market and invest there. I find it tough to do so unless I have a lot of money to put down to start. In your opinion do you think saving, learning my market, and then buying a property is wiser than investing out of state?What does Cleveland have to offer or any areas you are familiar with in Ohio? I like the affordability to acquire. Thanks.

Thanks for your help @Joe Cantanzriti and your honesty. Doesn't sound very appealing to me because it sounds like it would be a lot of work and possible headache. I would be investing out of state so that would add to the stress too. I read that Cleveland is on the rise, is this true? There are also other areas in Ohio that are reasonable and seem to be improving or better places to invest? Do you mind telling me where I may have better success investing in Ohio? What city or areas have good schools in Ohio or near the zip codes I mentioned? How far out from the zip codes I mentioned are safer zones to invest, if any? Thanks.

Hi, I am trying to analyze an opportunity that I may have with an investor in Youngstown, specifically the zip codes I mentioned in the subject. It seems as though properties can be bought very cheap and with about $20-30K can be renovated into a good looking home. According to realtor.com the median homes in the area are worth around $71K. Rents, I was told, are max $600/mo. and the area is low income. The numbers seem to meet the 2% rule and if it costs me $35-40K to buy and renovate a house and it's worth $71K, that seems good to me too. I have seen that the vacancy rate is high too. Anyway, if there is anyone that is familiar with these areas in Youngstown and could shed some light on the city it would be greatly appreciated. Do my numbers make sense? How bad or good is Youngstown for investors? Is there any appreciation? Is the city improving or declining? Do the areas I've mentioned have any investor activity? Thanks.

Hey @Edward A. here are my reasons why and feel free to let me know what you think:

1- Although I have been renting out my basement for 21 months, I have paid about $16,700 in mortgage payments. I would lose practically lose that money because I would be refinancing to get into a 30 yr. conventional loan at 4.375%. It would lower my monthly payment and eliminate PMI but it would also restart my loan and in the long run I would pay almost $30K more to pay off the house.

2- I have enough equity in my home to where I have at least $30K I can use to put on a DP for a property with a conventional loan.

3- My area (Loudoun County) is very expensive and not ideal for investing with low money. I don't see many MFHs in my area and most of the MFHs I see in my price range are further west of me and would add an extra 45 min to my 40 min drive to work already. With an FHA loan, the property would have to be owner occupied, which means my wife, her mom and I would have to commute a lot farther for work.

4- I have been looking at MFHs (2-3 unit) to be honest in the $100-$145K range. However, it feels to me that at first I may be more comfortable with an SFH because it may be easier to manage. To me it depends on the market which property I choose, which I am still trying to narrow down my market. But yes, I agree, an FHA on a MFH is definitely a wise decision in my opinion too.

Do you think, it would be worth the loss to get out of the FHA loan?

Thanks @Jeff Brower and @Edward A. for your help. After speaking to different lenders and calculating everything, it seems that it's best for me to stay in my current situation. I will come back around in 6 mo. and analyze the situation then. 

Thanks @Jesse T. and @Russell Brazil for your help. Yes, the cost of repairs aren't much on the property. I spoke to Upen and other lenders. It seems that it's best that I just stay in my current situation. What rule, if any, do you follow when analyzing a property Russell?

Hi @Scott Vance and @Account Closed thanks for your help. Hopefully, since my wife was working towards her bachelors degree, she didn't work much so I wonder if her minimal income may help us when we file. 

Hi, I rented the rooms out in my basement this past year and collected $16,200 in income. How can I best handle this income, come tax time? It's obviously a good chunk of money that will be added to my income but have read that I can deduct certain expenses in order to reduce the income. Does claiming the income have any benefit other than it obviously being legal? Can I establish an LLC at this point even if it is my primary residence and I am the owner? Can my new wife, who isn't on the title yet, claim the income separately? How much is boarder income taxed and how is it treated? What happens when the income - expenses equals in the negative? Also, I have been reading on BP that lenders do not count boarder income in order to qualify me for a loan. Am I safe to assume that in the next year, which is when I would like to buy an investment property, it will not be used as additional income in order to reduce my DTI and qualify for a better loan? Thanks.

Hi, I am trying to think of the best decision to make with the loan on my current home. I have gotten mixed answers on what is the best route to go. Anyway, I bought my home in 2015 with an FHA. I now rent out my entire basement and would like to purchase an investment property at the end of next year, 2017. My current rate is 3.375% not factoring in PMI. Rates have gone up now but was wondering if it is still wise for me to refinance in order to get into a conventional loan (my home has 20% equity). I have been told to stick with my current rate and the FHA loan. But I was thinking that if I get into a conventional loan, I will save money in the long run and have freedom to possibly buy another property with an FHA loan, make it my new primary residence, and also rent out the basement. Is there ever a benefit to staying in an FHA loan?