All Forum Posts by: Chuck Payette

I appreciate your insight - thanks again

Thanks for reaching out Andrew,

This is the note I got from my lender

The project does not meet Fannie Mae guidelines:

1. The budget does not have a line item for replacement reserves.

2. Question IV #2 on the condo checklist shows in the event a lender acquires a unit due to foreclosure or a deed-in-lieu of foreclosure the mortgagees is responseible for paying more than 12 months delinquent common expense assessments. This exceeds the maximum of 6 months.

I am preapproved but the condo I am buying HOA docs won't meet Fannie may requirements. Looking for alternate lender. Good credit/down payment and a cash flow positive property in MN

Gathering bids on new construction over/under duplex. One builder says spray foam between levels for sound barrier. Will that just transfer thunking of footsteps through joists and ceiling of lower level more?

Looks like I should have included more specifics in this equation - thanks for the feedback - This would be a new purpose built freestanding duplex townhouse that is part of an assoc - HOA of $100 per mo covers outside maint and repairs - investor would put down $80k and I would bring about 10k to cover points and closing costs - I accounted for 5% vacancy and 5% maint but no additional capital expense due to new build, HOA covering roof/siding/landscape etc and a projected sell in 5 years - rents would cover all expenses including taxes etc -pay me 7% management fee and make investor $260 per month - homes are appreciating at about 7% per year for 10 years so I went conservative and estimated a 5% growth going forward - as I stated in my earlier post this is a VERY hot growth/job market

How difficult will it be to find investors willing to put up 80k for 50/50 partnership in new built duplex that only cash flows $250 per mo. I will manage. $400k property should easily sell for over $500k in 5 years then split proceeds. VERY HOT job and growth market. I’m not asking for investors, just if I’m being realistic. I’m new to this so please be kind