All Forum Posts by: Dmitriy P.

You can always turn the illegal unit into storage and/or a laundry room which you can charge the legal tenant for. Hope everything works out well for ya! I personally would not want to deal with an illegal unit. Some of the things to consider, how many gas/electric meters are there? If there are only 2 and that 3rd unit is hooked up to one of them, you might run into a dispute btwn tenants of who's responsible for what which will get the land lord involved. Just some of the things to consider...

Looking forward to the event! Thanks @Darren Sager

2004 Subaru Forester XT with 40K on the clock. I take the train to work, keeps the miles low. Bought the car outright used about 2 years ago! Best car I've owned utility wise.

Looking forward to a productive event!

To my understanding @Elizabeth Colegrove, the PMI now stay with you regardless if you fall below the 78% mark. To get rid of it, you would have to refinance which I don't see the sense given interest rates will continue to creep up. Depending on how fast you can get to 78% and where interest rates will be at that time. Don't quote me on the PMI staying trough the entirety of the loan, but I have read a few posts on here mentioning this.

Thanks @Wayne Brooks, appreciate the feedback! Will certainly touch base with the lender. 

Hey BP,

Im looking to purchase a 2 Family home which I plan on residing in and renting out the other unit. I was going for an FHA loan with 3.5% down b/c i didn't want to tie up my money in this one property as I am planning on purchasing some investment properties in the near future. After speaking extensively with my realtor, what we came up with to avoid the PMI is this...

Take out a conventional mortgage for 80% of the purchase price. Then taking out a second mortgage for another 10% (such as a line of credit) to be used as a down payment along with 10% of my own cash to fulfill the 20% down payment, in all avoiding the PMI as the 20% down payment would be satisfied.

Does this make sense to anyone? If not, why? Looking for some feedback. 

Hey @Bill Bell - I work for a utility company in the north east and I actually investigate high bill complaints. There is no way your tenant can tell how much kWh were actually consumed by the other floor. I've come out to people's homes/apts who claimed their usage was too high b/c they suspected someone was plugged into their meter. One time I came out to a gentlmans home who stated he had no a/c's. During my investigation, I found 2 a/c units sitting in his bath tub. I never trusted most high bill claims from that moment. Based on the months and kWh you posted the increase in consumption seems legit in a normal summer year.  Most people's consuption peaks out in aug/sept. I wouldn't let them choose a random number to deduct from the rent. They have no basis or way to measure it. Hope this helps

I've spoke w a realtor and We weren't seeing eye to eye on things so I cut my toes with that. But you're right Erik, just need to find someone more aligned with  my expectations.