All Forum Posts by: Colton S.

John,

I speak from personal experience with the process of getting a metal roof installed. We were offered that, and we had to go with a metal roof due to the extremely low pitch of the roof itself. The thing we ran into after talking to multiple people is the damage caused by the roof leaking does not get removed or remedied when placing on top and can eventually cause additional damage to the house itself.

The idea of a roof on a roof might work if there was not an existing leak, but I think the best solution is to fix the plywood under it and clean up any damage that might have been caused and then put the roof on. That way, if any issues come up later you didn't waste money on the roof only to have to pull it up later.

Just my advise from having a similar issue with our roof and working with multiple roofing companies. (:

Hey @Prem Koganti. Good to add to the local investors!

I can't say i'm the most knowledgeable out there, but i will certainly help out if you have questions!

I would have to agree with the rest of the posts here. There is no reason you should have to pay the $3,800. The way i would view it is the installation of all that equipment most likely did some damage to your house that now you will have to get fixed when they move. Holes and screws all over your exterior walls. This was not approved, so it should not fly. Period.

It's like the insurance company, if i leave my house window open or house unlocked they have the right to refuse to pay for anything because there was no forced entry into the house. So.. Tenants fault for leaving something open, any area is a bad area with the right situation in place.

@Duriel Taylor, you can certainly take out an FHA loan on a four-plex, however, my concern is with the 10k loan you plan on taking out. FHA loans tend to air on the side of caution when it comes to down payments and they will investigate where the money came from, and the money cannot be tied up into a loan that you will have to pay back or you will be denied for the loan. The money has to be yours or in your account for quite some time (they went back 12 months on my down payment).

On to the debt to income ratio. The reason i mention this is because you most likely will not be approved for the loans on property 2-4 unless your current job can provide the income to keep your debt to income ration below 50%. Property one, shouldn't be a problem if you have enough income but once you start looking at the second property it might put your over this threshold and cause you to no longer be approved for another mortgage unless you used a hard money lender of some kind. The tenants rent will/should cover all of your expenses you would incure during your ownership, just the banks will not see this as income on your behalf and it cannot be used to purchase another property.

To speak on the LLC/Corp. This would not prevent your debt to income ratio from being too high, because the mortgage would initially be in your name the banks will still view this the same.

Lastly, the six figure bracket is not always as easy as it seems in real estate because things will come up that you completely did not expect and take a huge chunk out of what you're expecting. For example when purchasing my primary residence we had it inspected, basic repairs, the whole nine yards. Within 9 months of ownership we have already replaced the roof, hot water heater, remodeled the entire living room due to a cockroach infestation inside of the walls. All this, after we had professionals inspect everything before purchase, just some things are impossible to see without opening walls and more. What I'm trying to say in a long winded way is the little things will come up and bit you before you know it, especially in multifamily homes.

oh, another thing I did not see in here is closing costs, inspections, and the general costs to buy the property. Ours costed about 5K with everything, and I would assume the price would be a bit higher on a fourplex

@Duriel Taylor, that does sound like a good put together plan. Unfortunely there is one error that I see, and this will come from personal experience.

On your property, for the down payment normally they will not allow you to take out a loan for this, especially for an FHA loan.

When you have water in here, is that for just yourself or all the units in the complex?

Also, do you plan to self manage or use a property manager? A property manager normally will charge 10%.

Lastly, does the job your currently hold have enough income to allow you to purchase the properties and maintain your debt ratio on below 50%? You cannot normally count the rent as income on a mortgage for two years.

I do give you credit for thinking a lot of this out though!

Thanks!

This would be for a property in Raleigh, NC.

I have a neighbor that I believe has a corner of his house and a gravel driveway pretty far into our already small lot. 

Hey Guys,

I was wondering if anyone knew a good company for a property survey or the average price to pay for a survey of a .19 acre lot. 

Thanks!

Hey,

That seems a little high for a rubber roof. We have a pitch of 2' on the rear of my house, which is a 1576 sq foot one story building. We had a seamless metal roof installed with everything totaling out to $11,900. This included 15 sheets of plywood and quite a bit of fascia board. I would say, so long as you don't have extensive damage or your house is huge, that's a lot.

We got a few rubber roof quotes, and we found the seamless metal to be cheaper by a good bit.