All Forum Posts by: Cynthia Perez

@Wesley Sherow Thank you this definitely does help. Some of my biggest concerns are what is to happen if the home were to catch fire? The seller mentioned he did not have home owners insurance on the property and there was no need to, would you purchase renters insurance on such property? Would a shareholder certificate as  opposed to a deed/title be sufficient in the event of such a tragedy?  What if the co-op goes out of business? 

Unfortunately, The seller decided upon our last offer to no longer offer seller financing. I'm curious though for some of his hesitation. He also mentioned to the realtor he may rent the property out as opposed to selling.  I also discovered after extensive research that the sellers family created the co-op and sold it off to a larger company/family friend, we were informed buying out his share would allow us to manipulate some bylaws (not entirely sure how true this would be). There appeared to be some higher risk in purchasing this property although I feel I lost out on a deal I am glad I have some insight moving forward on how to approach a Co-op purchase. 

Thank you

Hi There,

So I am recently starting out I purchased my first investment property through Tax sale and looking to remodel very soon, considering washout refi and rent it and continue to buy more property, in the meantime I was shopping around for a primary residence however the one deal that has caught my attention was a co-op purchase that sits on 13acres in upstate New York and serves as a summer camp families rent out small cottages around the property and they are all fully rented each year, this home is the only year round home on this location 4bed 3bath which I happen to truly like. My intention is to reside in the home for several years and potentially rent it out or sell it long term however, the current owner has informed that the home will not qualify for a mortgage due to the restrictions of the co-op. Once paid in full I will receive a shareholder certificate, this seller is said to be one of the largest shareholders as he's been grandfathered in over generations. The situation appears to be risky however may open some options for applying for mortgage for investment real estate and will not affect my DTI. My biggest concern is the seller appears to be having trouble selling the home since it is either a cash buy or seller financing. I can see how this can be a bit of an issue long-term trying to sell in the future considering this is a sellers market. Price is at 159k he is asking 15% down and HOA fees are $539/month I like the idea of continuing my investment in Realestate without having to worry about taxes and having HOA cover some repairs if necessary. I also feel that I can simply add this to my rental portfolio down the road. The selling feature and no title or deed scares me and not something I am familiar with. I can always rent out or Airbnb in shared community with pool and volleyball court etc. later down the line. Any thoughts or advice??

Will do thank you!

Thank you Mike for your response.

I do realize I am eager to move forward however the fear of drowning and risking it all far too quickly is one that I haven't thought too far into.I do like the idea of starting small and managing 3flips/holds to gain experience and build my portfolio. Patience is key in the learning process and am grateful for your advice thank you Im looking forward to this new journey and career path. 

I recently purchased my first real estate investment property through a Tax foreclosure auction for approximately $70k. I used just about all of my savings to do so considering this has been my dream my initial plan was to purchase my investment property fix and flip and ultimately use revenue to invest and purchase the next and buy my primary residence. As many first time investors I have discovered several dilemmas along the way. The property is a seasonal and may require a bit of money and work to change to a year round residence after speaking with the individuals who reside in the home they informed us they tapinto ther in-laws septic system that resides next door and once they leave they will be sure to remove it. The home is in a nice neighborhood and all of the neighbors are considered year round homes. The property was auctioned off with people residing in the home who refuse to leave and claim to have relation to the prior owner who has passed away, they have declined the offer to stay and rent out the home and are currently in the eviction process. My ultimate goal is to continue to buy real estate and flip I have recently considered fixing and renting out the property considering the renovations it entails to sell the home right away it is worth approximately $200k fully renovated. 

I have had my eye on a quad plex for many years that has just hit the market and requires a significant amount of repairs as it has been vacant for over 10years. I realize this will take a significant amount of money to renovate and time. I am beginning to get inpatient and would like to seek my primary residence sooner although considering my DTI I may have a more difficult time qualifying for a traditional mortgage. In the meantime, I am working toward paying down debt to use this property as collateral to renovate the existing investment property and have some cushion to decide whether it is a good time to reinvest in another flip or settle down and buy a primary residence as I am currently renting a mother daughter that is family owned, I was recently given the opportunity to combine the mother daughter and gain additional square footage and extra bedroom/ bathroom, although the renovations and layout will still remain a bit uncomfortable and costly, if I can combine the existing living space I have now for another year until the investment property is renovated and my debt is paid down I may have more options in obtaining a mortgage against that property and obtaining one for a primary residence.

I would like to know how I can use this investment property to obtain a loan to either purchase the quad plex or buy  a primary residence using this home as collateral and any general advice from new investors starting out and recommendations. I would love to relocate we have been residing at our current residence for the last 10 years and are ready to expand and grow our family, the investment property is not a location that would be ideal for us to use as our primary residence it is an hour from our existing Businesses and work. We both own small businesses in our community and I work as a Nurse part time, we currently have no real estate experience. So I'd love to get some advice guidance and insight.

Thank you in advance