All Forum Posts by: David Niu

@James Hamling

@John Apple

Take the advice from James.. Real estate is a people business. What James said is extremely valuable and I couldn’t put it in better words myself.

Sorry for the “loss”, but as long as you can learn from it, it’s a win!

@Timothy Hero

Thanks Tim! What will my interest rate look like? Like you said walking away with 10k... it isn’t much, I put in 30k just on the renovation. That’s why the extra 5% is crucial!

@Kevin Sobilo

Hi Kevin, thanks for your reply. My goal is to take cash out so I can put it into another invents me to property. As well as taking off the PMI so I can have a better cash flow. What do you suggest?

Hello BP friends,

I am currently trying to do a cash out refi on a investment property. It’s a duplex I bought couple years back and have done a good amount of renovations to it (roughly 30k, doing a lot of the Reno myself).

This was originally a house hack that I've moved out of after a year, it's currently under a FHA loan at 4.25% interest rate.

That being said, I'm having a lot of trouble finding a lender that will lend me a conventional loan at 80% LTV, I know this is hard to find but for some reason everyone I spoke to caps me out at 70% LTV, saying it's a guideline for penny Mac mortgages. While I hear all the time on BP podcast people can get 80%, is this true??

The ideal situation is that I get a 80% Cash out and take off the PMI. I still owe about 168k on it and I estimate it's worth about 250k. Can someone please advise on what can be done here and what's the best way to pull this money out so I can keep investing?

Please know I no longer live in this duplex and both sides are now rented out, considered as an investment property.

Thank you all for your time! If I missed anything or need to be more specific on something please let me know!

David

@Dylan Tanaka

What’s the correct company? Please let me know.

Hello BP friends,

Getting ready to close on small flip , I have a question on the house value. Hope you guys can share some insight.

This is a SF in superior township, Michigan. Seller is asking 185k, this property has some issues, some water leak in the basement, could be due to uncleaned gutter neglect, poor drainage, causing the wood to rot behind the gutter. Other than that it needs paint and carpet. Also a above ground pool that needs to be removed.

I would estimate this house needs 15-20k worth of repairs.

Let’s say the deal gets accepted at 185, but gets appraised at 175, and we still buy it at the 185 price. When we finish the rehab, is there still money to be made? House do go pretty quick around here and getting bid over asking. Is this even worth it at the end?

As for the appraisal, once a house gets appraised, does that lock in the value of the home? I am concerned that if we buy it over appraised price, and rehab it, that it will only be just over what we pay for it.

The comps are around 170-175 and for a slightly larger house fully rehabbed, goes for around 200k (1200-1500sqft).

Thank you all for your time and I am happy to clarify the post if needed.

@Rene Owczarski

Conventional loan does not require me to occupy the property. I just wanted to pay as little as possible upfront. Of course with 5% down my PMI will be higher.

Not sure about your market, but I’m almost certain you can get lower than 15% down.

Hello BP friends,

I am buying a house for a John( friend) who does not qualify for financing at the moment.

House will be around 200k in Westland, MI

Will do a 5% conv. Loan with seller paying a max 3% concession. Total will be around 11k cash needed at time of closing.

John will sign a triple net lease, who then will pay rent with a 200+/month cash flow.

After 1.5 years John wants to buy the house back at market rate, but no lower than what I paid for it. (Appreciation is minor in Westland)

My question is how much money can I pull out at time of sale? Assume 5k in equity, how about the down payment, am I able to pull that out as well?

If this is a bad deal for me, how can I turn it around? Are there creative Seller financing options I can set up when selling John the house?

Thank you all for your time, I am happy to clarify my post if not clear enough.

David

@Ryan Xu

Would I not be able to pull out the down payment at the time of sell as well?

@Ryan Xu

Thanks for taking your time to reply Ryan.

So yes upfront I put up 11k out of pocket( that is with seller paying a max 3% concession). So my initial investment is 11k. And after year and a half I can only pull out the equity portion is that what you’re saying? Plus cash flow would only total about 8.5k, not including minor appreciation.

How can I turn it into my favor? Are there any creative seller finance deals I can set up?