All Forum Posts by: Account Closed

Alex, I find this very interesting as I too am a new investor and am hoping to purchase a multi-family with an FHA 203K sometime in the future. Since I'm a newbie, would you be so so kind as to explain each of these charges in a little more detail to me so I can understand them properly? You can e-mail me directly at: [REMOVED] as I know this is a little off topic !

1) Mortgage Payments Escrowed? What exactly does this mean?

2) FHA Inspection fees? Is this the same no matter what you are purchasing? It is a one time charge for once refurb is completed? And is it rolled into your mortgage payments or an extra upfront cost?

3) FHA consultant fees? Is this always necessary with this type of loan and is it rolled into your mortgage payments or an extra upfront cost?

4) Is the origination fee built into your mortgage payments or is at an extra upfront cost?

5) Permits? Is this cost required by the city to allow the refurb to take place?

Thank you kindly and best of luck to you !!!

Yes, thanks for your assistance !

Jesse, I could be wrong here since I'm just beginning to investigate things. But, if I understand correctly from the research I'm doing online, the 203K streamlined can be used to purchase a new home. It's advantage over the regular 203K are explained here:

"The Streamlined 203k is designed for less extensive improvements and for projects that will not exceed a total of $35,000 in renovation and related expenses. This version does not require the use of a consultant, architect, and engineer or as many inspections as the Standard 203k. As a result, when applicable, the Streamlined 203k generally becomes the simpler, less costly option".

Yes, that all makes perfect sense. Thanks !

Thanks for the feedback guys. Do you know if the 203K streamlined will also cover the room additions? Or only the regular 203K? I think the streamlined will suffice just fine for me if it covers those types of upgrades as I don't plan on doing over 35K in renovations.

New investor question: When choosing whether to buy & hold or to fix & flip, would a good strategy be to?

1) find a property that would make a great rental property

2) purchase and refurb

3) get tenant's in place

4) put it on the market to see if I can get a good price for it and make a nice profit

5) if so great, if not... just hold it as a rental property making passive income

I mean logically, this makes sense to me. 1st choice: make a good profit off it to get more money in the bank. 2nd choice: hold for consistent passive income.

Hi, does anyone have any experience using a Home Path Renovation Loan for a Fix & Flip? I know they do 10% down loans for NOI properties. But I'm wondering if they limit that strictly to buy and hold investment properties OR if they're OK with an investor using it for a fix & flip? Also, I'm wondering if there are any legal ramifications if I say it's for a buy and hold rental property but then decide to flip it after the refurb is done. And last but not least, would the refurb take longer with this type of loan as opposed to with hard money? Because obviously that would suck because more carrying costs would be incurred !

Do these loans cover 'all' types of renovations OR just 'some' renovations. Example: Let's say I want to convert a 2bdrm into a 4bdrm by turning a porch and a dining room into legal bedrooms (they would meet legal bedroom requirements). Would they except these types of renovations? For 203K, I found this and don't see it listed there: For Homepath, I can't find a list.

http://203kcontractors.com/faqs#repairs

If they don't cover those types of renovations, what other options would be available to me for funding the refurb by a lender?

Hi, I have a question in regards to FHA 203K and Home Path Renovation loans. There is a 2bdrm that I could convert into a 4 by converting a porch and dining room into bedrooms. Would these loans cover that kind of thing? OR would they say 'no' because these types of improvements aren't really necessary?

I am a brand new investor. But Baltimore is one of the cities I'm considering for my 1st investment because a) NYC where I live is too expensive a market for me b) my girlfriend will be attending Johns Hopkins next semester so I'll be spending a lot of time there. With that said, I'd be happy to meet for a quick cup of coffee/tea when I'm down there in early February to learn about the Baltimore market and to discuss a fee/commission for moving forward with one of your leads ! You can stay in touch with me at [email protected] (I am a real estate agent in NYC).