All Forum Posts by: Devon L.

Thanks everyone, this information really helps.

Forgot to post the link

http://www.bankrate.com/calculators/mortgages/mortgage-loan-payoff-calculator.aspx

Thanks @Jane A..  I agree, the loan amount will be in the 59-64k ballpark so that could also contribute to the rate.  In any event, if the property is fully rented I should be able to pay an additional $150 in mortgage payments to accelerate the term and pay less.  I found this website that has a "payoff calculator" which is awesome.

Thanks @Jean Bolger  The 100K was a reference to another company that wouldn't lend for a purchase price under that amount.  Didn't mean to confuse.

Hi all, 

Quick question, I'm in the market for my first investment property and the first mortgage company quoted me 5.427% on a 30 fixed mortgage.  The 2-3 family units I'm looking at are between 55-70K.  One company told me that they couldn't lend money for investment property under 100K and asked that I raise the amount (which is asking me to take on more debt to meet their standards).  My question to you, is this rate unreasonably high for someone with fair credit investing in a rental unit?  I am in the process of cleaning up my credit reports which should move me up to "good" in the next 3 months.  I was hoping to have something fixed up and fully rented before winter comes around.  

Agree with everyone, if you can afford it, maybe add a nice porch light fixture above the door.  Agree the door should be painted and hedges should go.   Picket fence would be ideal with some colorful flowers.  This is probably out of your budget but check out how this house looks with the grey/white colors.  You wouldn't need shutters.

Thanks everyone! That's why I'm here asking these questions now.  @Jesse Waters

 I really like your suggestions.  @James Wise I'll do a comparison with the other building  just two houses over @775 to see what sets them apart.  I can tell you that they have an in unit washer/dryer combo.  Appreciate all the feedback.

sorry guys I left out some details.  I intend to completely renovate the units.  I would ask the tenants if they would mind is renovating while they were there.  I've done this with my dad in the past before he retired.  We would be doing most of the work ourselves.

Hi guys, 

I went to look at my first rental property yesterday in CT. I sat with my RE agent and we looked at the MLS and saw that of the three units listed (all 2bdrms), only the first two floors were rented, on a month-to-month lease for $650 each. I would say that by looking at the MLS $650 is the average rental price in this area with the high-end being around $1,100 for a nicely renovated 2 bedroom unit with all the bells and whistles. If I were to purchase the property I would want to increase the rents as follows, $850 (first floor), $775 (2nd flr), and $700 (3rd flr). Should I stipulate in the contract that I want the current renters out and start from scratch? Or see if they'll agree to the new rent terms with a 6 month lease? I don't want a month-to-month and I also don't want to deal with problem tenants for a whole year. What would you do BP members?

Hi All,

I had an extremely productive Friday and I wanted to share my experience with anyone else looking to invest away from home.

I live in NYC but decided that I want to invest in buy and hold properties in CT and PA for financial reasons (NYC is way overpriced). I took Friday off and drove 2 hours up to Northeast CT. With my laptop in the passenger seat I started looking up the addresses of properties I was interested in and touring the neighborhoods. I spoke with several contractors I saw working in the area to also get their perspective on the surrounding neighborhoods, etc. It just so happens one of the contractors I met `gave me some great insight to one of my potential properties because he worked on it the year before. In addition to this I scheduled an appointment with a local RE agent who has been working in the area for more than 30 years so he's well acquainted and can assist me on my journey. I made sure to ask him beforehand if he would be willing to take me on as a mentee, with respect to investing in real estate. He far exceeded my expectations. We spent about 3 hours in his office sharing stories (he had some amazing stories about his earlier days as an agent) and he walked me through their MLS showing me what rents were going for in certain areas. He understood that I wasn't from the immediate area and said he would contact the sellers' agents who he would likely have worked with before and ask them if there were any major "issues" I should know before I made the trip up again to look at the properties (potential properties). I hope I can continue to trust him but will tread cautiously. I have some questions that came up during my trip that I will post separately to get the expert's advice.

-Devon