All Forum Posts by: Chuck A.

Thanks !!! Jerry, Christine, John K , Jason & John S for your responses.

I am looking to buy a house for my son who is in college.  The mortgage + utilities is a lot cheaper than the dorm and the property is in walking distance from campus.  Even though I own my own my home, I would like to buy the new property as an "Owner Occupied" property to leverage a better bank loan rate and get homestead exception on taxes.  

I am not even sure if this is even possible,  but my thought is to make my son a co-owner of the property as he will live there (even though I will finance the property) . 

Any thoughts or strategies on this approach ?

Thanks !

Hi,

Just wanted to share an experience that maybe others could benefit from and also see if anyone has any input.

About a month ago I found a HUD property that seemed like a good deal. They provided a property condition report (less than a month old) where all major things were checked in working order. So I went ahead and put my earnest money deposit ($500). Upon doing an inspection found that the property condition report reported by HUD was incorrect and that there were major issues with plumbing and electrical. In the meanwhile also had to pay to get the electric meter certified for the inspection ($250).

Since it had all the issues, I contacted HUD informed them of the incorrect property condition report, cancelled the deal and requested my earnest money back. They refused to give the money back because I am an investor and there is a clause that there is no money back for investors. The fact that they supplied me with a false condition report report didn't seem to bother them.

Obvious, I struggle with this as it seems so unethical. Between HUD and the management company i have spent about a month escalating the issue and filing appeals with no resolution. If I was the one selling the property with false information I imagine I'd get sued.

I haven't decided next steps for appeals or how long to continue, but I am out almost $1,000 and hours of frustration. One thing for sure, I will never look at a HUD property again.

Hopefully this helps others as lesson learned from my experience.

Merry Christmas Everyone !

Thanks Mindy and Upen 

Thanks James

Thanks Patsy - Good advice

Thanks Bram - Appreciate the feedback

Hi,

Trying to evaluate my financing offer from my bank and also sharing a bit my experience if it helps others.

1) I am working with a local bank and seems that getting a loan with the property in my personal name is easier than my LLC. The interesting thing is the bank asked if this was going to be my primary home and if so would need me to move into it within 30 days. If it is going to be a rental then it can still be in my name but the rate goes up almost 1% pt.

Question:

- What would happen if I did say it was primary but then rented it out.  I imagine the bank could recall the loan, but wonder if that actually happens ?

2) Would love to know if there are better financing deals out there, since this is my first financing deal. My bank is currently offering :  

15 yr Fixed

3.85 % with a .05% buydown

20% down.

Closing costs with Bank and Title around $2500.

Question:

-  Does anyone know of better financing deals or is this pretty standard ?

Thanks

Thanks Lee !

Thanks David !