All Forum Posts by: Luis Melendez

Right I didn't have to change the lines through the home only the panel in basement. What's your reason for updating though? Is it peace of mind or for insurance reasons?

mine was a duplex as well btw

@Rick Santos hey Rick I had to replace knob and tube in basement last year for insurance purposes so I had the exact same situation as you. It cost me $650 from a licensed electrician. And he did a good job. 

Hey Karen thats awesome rent for the 3 bedroom. Last september i had a section 8 tenant move in to the third floor of a 3 bedroom apartment and they only allowed $935. They give her partial rent so i dont know if that has anything to do with it. But can you tell me how you were able to fight with the housing authority to get $1050?

Hello my fellow BP members. Im asking for some help on my refinance of a 3 family property. SO im contemplating going eithier cash out commercial loan or cash out regular conventional loan on the refinance. Thanks To @Michael Noto i met with an awesome local banker who is a portfolio lender. Now my dilemma is this, i can go regular conventional residential loan and pull cash out and get the standard 30 year 4.75 rate and be on the safe side. the downside is i have to wait 6 months for seasoning and also after 4 mortgages, which i plan on aquiring 2 properties per year, it will be hard to find financing( i was planning on having my wife put mortgages under her name once i reach this issue but realize they also use a dti ratio for their lending criteria so it is somewhat a gamble too ).

Or i can go with a portfolio lender and get a commercial loan. i wont have to wait for that seasoning period, i build a relationship with a great bank and they are creative with financing so it wont be AS hard to acquire more than 4 properties. The only problem i have with that is their lending 5/20. My biggest concern would be once the 5 years is up i would most likely refinance with them again since the balloon is due in 5 it would basically reset every 5 years. Mortgage rates are great right now but in 5 years or 10 years who knows. the rates can only go up from here!!! Im new to commercial lending and any info or advice would be much appreciated. what would be a better option considering my plans for the future of acquiring 2 properties per year. Thanks in advance

Usually factor in 3% of purchase price for closing cost

hello bp members quick question for you guys. im buying a property that i won on an online auction. the building was occupied when it was taken over by the bank. so when they listed it online it was listed as "occupied". currently its vacant now cause tenants left and bank cleaned out the property. Now im set to close next week and the banks attorney sent my attorney the hud stating that the buyer is responsible for paying water/sewer bills because it is "occupied". has anyone had a similar issue relating to this and if so did you negotiate out of paying it or did you just have to bite the bullet and pay it? I wouldnt mind it if it was a grand or 2 but the water and sewer bill is a little over $13k!!! ouch. Any help is much appreciated. Thanks

I haven't really invested out of state myself so Michaels advice is golden but I would say it really depends on your strategy. If your looking for long term investments that cash flow then you can def find deals here just like you can out of state. But if your looking for appreciation,cites in  ct don't really have  those big market fluctuations like a Phoenix or Las Vegas. It's more of a conservative get wealthy slowly state. So it really depends on your strategy in my opinion. What's your goal?

hey jacob great job getting out there and even finding a deal for a potential owner finance. they are hard to find but they are out there so thats great. i think if you can get in at 200k thats a little less than an 8% cap its not a bad deal. you will have about $116 per unit cash flow managing yourself which is not bad. Turn key so low maintenance.  And bonus is seller financing so off the books. but i wouldnt go more than that.   That would be your STRIKE price so start at 10% below that(which you already had in mind at a $174k purchase) and make sure you do your best on educating the seller about why seller financing would be beneficial to him. he would ultimately get way more for the property. his capitol gains is spread out over 20 years or whatever you negotiate and worse case scenario if you do default he keeps your deposit and gets the properties back via foreclosure. All he does is collect his money every month. Also im not sure but does he have mortgages on these properties? Cause if so you would have to do a subject to or wrap around mortgage which i have never dealt with personally so you may want to get some advice on that. also how much did he buy them for? If hes looking for a minimum of $245k to even start negotiations you need to figure out why. Whats his why factor?  

your first choice which is referred to as "house hacking" is a very popular concept alot of investors have started off doing and/or implement today. The major benefit is getting a better mortgage rate compared to an investors rate. i would research "house hacking" on this forum and read what others have done executing this strategy. Good luck with your meetup at the REIA Justin.