All Forum Posts by: Account Closed

@Wayne Brooks - Thanks for looking at this for me.

Maybe the 25% for vacancy, mgmt and maint is high? How do i figure this properly?

I was using 10% for vacancy because that's what i see everyone say the minimum should be for accounted for. As for mgmt and maintenance, I am moving to the area, and plan to manage it myself. Maintenance should be low based on the place being redone recently - see below.

Utilities are paid by the tenants, so at this point I am not sure what to figure in for my costs if anything?

I was also planing to increase the rent for the second unit from $1050 to $1200/mo based on the owner saying that both kitchens and baths were just redone, along with the ac unit, and nothing else is needed. The tenant on that side is month to month, so i can increase the rent or find a new tenant for the new amount.

So, once i know what you guys would use for numbers, I guess i can get a better understanding of the numbers, and maybe make a low offer.

Any and all help is always greatly appreciated.

@Josh C.

Here is what I am using, but this opportunity is not in my area, so I am not sure how accurate these numbers are. I guess that's my frustration.

Unit1 - 1200/mo

Unit 2 - 1050/mo

Vacancy - 10%

Taxes - $416/mo

Insurance with flood - $383/mo

Management - 5%

Maintenance 5%

Utilities - 500

Reserves 5%

Operating expenses - 33%

Sales Price - $230k
$46K down

5.25% interest over 30 yrs ( i think this is high )

Repairs $100 - owner just renovated most of the place ( so he says )

Thanks for your input.

Hello all, and thank you in advance for your help so far. Here I am again looking for some advice on a potential deal.

2 unit property, each has 2/2

Unit 1 rents for $1200 - Owner recently did some minor upgrades, and has new tenant on 1 yr lease.

Unit 2 rents for $1050 on a month to month.

Taxes are estimated at 2% of purchase price

So assuming purchase price of $230k, taxes would be about $4596/yr

Insurance we estimate is about $2400

I am trying to figure out how to use all these cash flow analyzers etc..but to me with 20% down it looks like it will net between $580 to $710 in monthly cash flow. This varies depending on what numbers i use for the sheets in terms of vacancy, management, maintenance, reserves etc.

So, this is just my first look at this property, and it looks like it might be worth looking into a bit more.

What do you guys think?
What am i missing?
How do i know my numbers are right?

What should my next questions to my agent be, or what should my next steps be?

@Mark Ferguson - We do not yet even have a contract. She took it off 3 weeks ago, and we still don;t have a contract. That's why I'm upset. I agree once the contract is signed it should be updated, but to this point everything is just a verbal acceptance of the offer.

@Josh C. - The sale price is $385k, but in NY closing costs are high due to pre payment of taxes, insurance, flood insurance etc..

@Albert Bui - Is that a hard and fast rule of 6% seller concessions?

Also thank you for the suggestion. Since my lawyer now has to make a new contract due to them changing the funding, I am taking your advice and adding in there

" buyer to be pre-approved through sellers choice of preferred lender prior to acceptance."

As well as, I decided i would add that the buyer will include a check for $10K to be put into an escrow account to be used towards funding any appraisal issues due to the concession they requested. If the house is appraised for full value, then no worries they get their full $10k back. If not, we will already have the funds to cover it so we can close the deal.

Additionally, I want to see if my lawyer will put a time limit in there that the buyer must sign within 3 days.

My agent just told me that the buyers are cash heavy, but don't want to part with it. So i think this option is the best route.

Why someone would have enough cash for a 20% down payment and not use it makes no sense to me. Why pay PMI, higher interest rate, and additional costs? I don't get it.

Additionally, I want to thank everyone here for reading, and posting replies. This is a great community, and very lucky to have found it. I hope i can contribute as I learn more as well.

Thank you all for the comments. I really appreciate you taking the time to read and respond.

They were pre-approved, and my lawyer did see the pre approval letter before we sent out the contract originally. Something sounds fishy here, because we were told they were approved for 385k max. But now they want an approval for $395k? I guess 10k is not much. Does that sound reasonable, or did someone lie to me?

I told my agent not to take the house off the market, or to stop showing it. She told me once we accept an offer as courtesy we need to stop doing open houses, but if she gets a request for a private showing, she will do those.

I told her that was ok, but not to change the status on MLS. But now looking back at it, i think she changed the status on MLS, and that's why there was no interest.

As i write this out I am getting very upset with my agent.

My lawyer spoke to the buyers lawyer. Here in NY we use lawyers for everything.

Originally the buyer told my agent he was doing 5% conventional.

My lawyer drew up the papers and sent them out.

Few days later, He said he was doing 5% down FHA, again my lawyer changed the contract and sent it out for signature.

Now the buyers lawyer called and said, the buyer is now doing 3% down FHA, first time buyer, and wants a $10,000 concession to cover closing costs.

So this buyer wants to finance 97%, as well as the closing costs.

Am I insane for even considering this?

My concern is i do everything to get ready for the closing, like find and buy a home in Florida, move my family etc.. only to find out on day 43 that the bank denied his mortgage. Or even worse, he is $10K short because the house didn;t appraise for enough to cover the loan. Then i am stuck either taking a 10K loss, or lose the deal.

Dazed and confused.

Hello all,

Would like to know if anyone has experience with 3% down FHA first time loans are currently being approved.

We have an accepted offer on our house, but the buyer just indicated that they are doing a 3% down FHA loan.

Of course, this is 3 weeks after we accepted the offer, and so now our house has effectively been off the market for 3 weeks.

I'm a bit nervous because we are moving out of state with our 5 children. This puts me in a tricky spot for many reason which i assume most of you can understand / relate to.

Any feedback is greatly appreciated.

Hello @Mitchell

I'm looking in Boca Raton, Coconuk creek, Tampa, st Petersberg, Clearwater areas etc. Anywhere within a few hours driving distance of Boca.

Hello all -

I am looking for a investor friendly real estate agent in south Florida to help me find homes to flip & buy and hold.

Sorry, the asking price as of right now is $499K, and is bank owned.