All Forum Posts by: David S.

Hi.

I am set to borrow 130k to buy and rehab a property at an 11 percent interest rate (I only have to pay the monthly interest and closing fees) from a private lender. I expect the home to appraise at 170k-200k in 6 months when it's fixed and rented out to nice grad students.


Will I potentially be stuck with this loan or will conventional banks be lining up because of the high AVR/loan ratio and rental income? My credits great and I have some reserve cash and 40K in rental income but I'm not working now. Thanks!

Hello. I have borrowed 130k to buy and rehab a property at an 11 percent interest rate (I only have to pay  the monthly interest and closing fees) from a private lender.  I expect the home to appraise at 170k-200k in 6 months when it’s fixed and rented out to nice grad students.


Will I potentially be stuck with this loan or will conventional banks be lining up because of the high AVR/loan ratio and rental income? My credits great and I have some reserve cash and 40K in rental income but I'm not working now. Thanks!

Apologies if i sounded like a know it all. From a finance perspective, if you could sell it and have a lump sum of money to invest in a higher roi rental or the market it could make sense to sell. If you don't have a lot of equity then keep renting it :)

$280 cash flow is not good at all especially for a home that expensive. If you sold the house and made a 40K profit and invested that in the stock market you would be doing  better for less work. 

Hi Jack.

I would purchase a 4 bedroom house near your campus as a primary occupancy house (put 5 percent down), furnish it, and rent it out to students by the bedroom (not the whole house)

If you invest $10k in buying and rehabing it and charge students $500 a bedroom ($2k total), and your morgage payment is $700 a month, you have just returned over 100 percent on your 10K investment every year, not to mention the equity you are gaining. Students can be rough on a home but they wont stiff you on rent or sue you like a family.

Compound  interest is great, but it's lovely putting your money to work and having income every month. This income producer can help you build something bigger down the road. 

 Susan, why would you be surprised that someone on a voucher program would smoke weed in your condo? 

Hollins market area. Bad now but U Maryland is expanding. 

 Because they are bad tenants? Did you have a poor experience? 

Hello. I have had success renting to Hopkins Students near the hospital campus. 

I found a property i like near Morgan State for a similar model.

I have concerns regarding supply/demand for that area. 

Compared with Hopkins Hospital, It's a bigger area around Morgan with more neighborhoods. 

Can i expect similar ease in finding tenants and that i can rent for a similar price, or is finding student renters more competitive? Also i think Morgan undergrads are more likely to wreck my house than Hopkins grad students.

Thanks! 

just to update you guys I went under contract with a house in Remmington. It's a bit on the high side, but low taxes make the payment under 1500 monthly, beautiful home (to the eye it's a flip so I worry about inspection) . 4 bed 2.5 bath and lie 2200 sq feet counting the basement, that has its own street enterence, and it's an end unit right up against the park and a nature trail. 2938 Miles Ave if anyone wants to look thanks