All Forum Posts by: Daniel Gibson

Hi @Quortney Williams, I came across your post from a few years ago. Did you end up purchasing in Sheboygan? My wife and I own a couple duplexes in Florida, however with insurance costs on the rise, we're looking at Wisconsin, which is where my wife is from originally, and we're looking at small multifamily in Sheyboygan. 

Would love to hear how things went for you?

@V.G Jason very fair and good points. Makes me wonder if their hard nosed stance and lack of willingness to budget on purchase price is pride or delusion. Worth noting this is a flip albeit a good one (which the inspection report supported). Makes me think they're holding out to recoup sunk costs which feels like a fools errand to me.

@Chris Seveney for context this would be a primary residence and house hack, so it's a little less cut and dry vs. other investment purchases I've made previously but I hear you on your analogy and POV. I'm trying to think through all options (including walking away through to covering the appraisal gap).

Appreciate the reply and food for thought!

Hi @Ryan Newport how did this play out? I'm in a similar situation (non-FHA) and generally wondering how to go about positioning seller financing as an option to cover a $30k appraisal gap that's come through.

Any insights, related or even tangentially related are very much welcome!

Thanks,

Dan

Hi BP,

I'm looking to purchase a property (offer accepted at $485k) however the appraisal came in $30k under ($455k) which I'm unable to cover. The seller (so far) isn't budging and has refused to lower the purchase price. 

A few questions: 

1. Has anyone ever seller finance the the appraisal gap?

2. Beyond submitting alternative comps to the appraiser and seller financing the gap, does anyone have any other tactics to help close the gap or cover it?

For context, the property is a 3 bed, 3 bath and interestingly, although the other 3 comps have sold recently, in the same area (>1mile radius) and had similar sqft, they were all 3 bed, 2 baths...I'm wondering whether this is grounds to push back on the appraisal? 

Within the property I'm looking to purchase, there's also an attached ADU with a full kitchen, full bath, and bedroom, which I intend to rent out. I'm wondering whether appraisers take the earning potential into consideration when assessing the value?

A HUGE thank you to anyone willing to share any knowledge, tips, tricks of the trade.

This would be property #3 but the first I've encountered where the appraisal is less then the offer price.

Gratefully, 

Dan

Hi all! 

I own a duplex in Florida in the Tampa Bay area. One unit (2/2) is a LTR, the front unit is a 1/1 and is fully furnished. We're renting it out on Furnished Finder and on Airbnb but recently my wife and I are considering partnering with a business that would sign a long-term lease and then rent out the unit on a 30 day min. basis. 

I'm wondering what questions I should ask them to ensure I'm not putting ourselves or my property in any avoidable, unnecessary risk, and in order to make sure I'm fully vetting the company? 

My initial questions:

1. What type of commercial STR insurance policy do they carry (above and beyond insurance provided by the likes of Airbnb) in the event of any accidents, injuries, or damage to the property? 

2. What would happen in the event that the property or its contents are damaged? Broken furniture, holes in walls, etc. 

3. How do you screen guests?

4. What is the average length of stay of guests at your other properties?

5. What does their lease look like in instances it's a direct booking?

6. What would happen in the event we need to access the property for maintenance?

And lastly, if anyone has a bespoke lease or clauses they use to cover themselves as the landlord in this situation, and would be willing to share, that would be greatly appreciated. 

Thanks in advance for any and all guidance!

- Dan

@Erin Church, @Todd Jones - Thank you both for taking the time to reply and share your experiences. Helpful to hear it's likely a non-issue with the county and probably just something that's been overlooked or an administrative error.

I'm looking into the situation with the permits and code standards too as this may end up being a snare in my ability to off-set the projected income from the side unit (1/1) I'm hoping to rent out. 

Thanks again, appreciate it! 

Hi folks, I'm looking at a potential house hack and have found a property that is listed as a 3 bed, 3bath on MLS (and it does indeed have 3/3) but the County Assessor has it as a 3 bed, 2 bath.

Could this be used as a negotiation tactic to bring down the sale price? 

Are there any other implications I need to be aware of if I were to close on it? I imagine flagging this to the County would lead to higher property taxes and the potential of owing back-dated taxes. 

Appreciate any feedback or thoughts from people that have been in a similar position! 

- Dan

Hi folks, I have a DTI of around 30% and I'm wondering if the higher your DTI the lower of a mortgage you'll be able to qualify for?

For instance if I were to be right at the upper DTI limit for a given lender, would they limit what I could qualify for versus if I had a DTI that was very low?

For context, I own two duplexes and I'm looking to purchase a primary that I can house hack. I'll be speaking to lenders about this to get a concrete answer but was generally curious about the relationship between DTI and what I'd qualify for.

Thanks!

@Ryan Moyer good question! None of the properties are vacation homes. I own two duplexes in the city: one has 2 x MTR leases and is on an FHA, the other duplex has 2 x LTR leases and is on a conventional loan.

Given this, it sounds like the 50 mile rule wouldn't apply in this instance. If so, great news. Thank you for calling this out.

Thank you also @Luke Carl for your note regarding the leases!

Appreciate you all taking the time.