All Forum Posts by: Edward Barnes

Currently have a gravel U-shaped driveway that wraps around the back of the house. It's a little awkward because it hugs the back of the house tight, between the house and a large oak tree. There's a concrete slab at the base of the stairs out the back door that goes into the driveway some and then oak tree roots themselves make it a little bumpy ride. I'm thinking of doing away with it and just keep the one driveway and some kind of turn around. Just wanted to see what people's thoughts were on this. Some people seem to think they're great, which I'm inclined to agree with, assuming it's in a space that works. Just seems to be poorly done, makes the lot seem smaller, and it's just a lot to maintain. Any thoughts?  

Will tell you that rents don't keep up with the value of the property. A $200k property doesn't rent for double what a $100K property does. Generally, the higher the value of the property the crappier the ratio of market rent to principal and interest. 2% rule would be $1000 in rent for $50K in property value. It's overly ambitious, but quick. If you're getting 5K on a $250K mortgage, sounds like a good deal.

Not sure on the mechanicals, haven't actually taken a look at the property yet. I'd say ARV is around $120K. Windows are vinyl.

So I'm looking at my first rental.

5 BD / 1.5 BA, 1800 sq ft, circa 1905

$67,000 purchase price, would bring $1200/mo rent based on padmapper, rentometer, mapliv, etc.. and I think that's being conservative. Taxes are $2000/year. I have a property manager lined up, already manages my townhome.

Doesn't look like it needs much work, maybe refinish the hardwood floors and stain the back deck. Has a slate roof in a "historic district", that looks like it might need some repair. It's original I assume. Does have vinyl siding already, so they should help on maintenance. Neighborhood's nice, but the school district's bad.

Anyway, I think that's all the pertinent information. What do you guys think? 

Michaela pretty much hit the nail on the head as far the intent of the 203K being a "livable" house. For example, in regard to appliances, you have to have a stove. You can't have any tree limbs hanging over the roof. I had an 80 ft tree like 8ft away and the only issue was the branches directly over the roof. No peeling paint. Etc etc...

The check's already been sent to my address. It's made out to myself and the contractor. I'm not in a rush to get it to him. The contractor's already signed a lien waiver. He's so disorganized I'm not sure he even knows he has a check. The old and new contractor have a relationship, so maybe the new one can get the old one to pass it on because the new one's really bailed out the old one by taking on the job at all.

The program's really set up for one contractor through the whole job. Here's some verbiage from the draw request: "...10% holdback will not be released until all work is complete and it is determined that no mechanic's and materialmen's liens have been placed on the property."

It's just flawed if a contractor can do select items and not do others. Every contractor I interviewed and the HUD consultant said that oh yeah, the money could be moved around. Some areas might be fat, some slim. Money designated in one area could be applied elsewhere...unless you run into this guy. Guy was referred by the bank too. I'll be in touch with them.

Thanks everybody for the replies.

So I'm knee deep in a 203k loan, mid-rehab. My contractor pretty much did the juicy/profitable items of the rehab and quit, namely some foundation work and roof.

The HUD consultant did an exit inspection and I signed off on an exit draw. Here's the question though, the bank wants to pay the quitting contractor the 10% hold back for the items he completed. I was under the impression the hold back was to get the contractor to complete the entire job, not just cherry pick. Does anybody know the answer to this? Thanks in advance.

Anybody have any experience with his?
Here's the situation. I'm buying a personal home. It's a short sale. So I put made an offer and the offer's accepted by the bank. Later when I go through with the 203K consultant, A/C unit and furnace are missing. Anyway, long story short, owner doesn't care just wants out. He has homeowners insurance, but can't/won't pay the $2000 deductible on a $6000 claim. Is it possible for me to pay the deductible and collect?

Skip the bank...the city won't cut on the water for a day?

nm, looked at your link, answered my own question

Kyle Hipp
I'm just curious, following your line of argument, what's the limiting factor in the size of the federal budget...or is there none as long as the dollar is the reserve currency?