All Forum Posts by: Erik Manley

Hello, this month's meetup is Setember 13th at Bad Son's Brewery in Derby! Join Brian and I (Erik) for our monthly real estate networking event, let's make this month better than the last! Whether you're new or a seasoned investor, everyone is welcome and this is the place to learn and make connections!

Come join Brian and I for our monthly meetup in Derby, CT! We've been averaging about 35+ people a month, so whether you're a newer investor or a seasoned pro, stop in and see what all the hype is about! 

 Sorry just saw this. Unfortunately with the HomePossible program you can't do any renovations but as long as the property passes conventional property standards, it will be eligible since it's a Freddie Mac product.

 Let's say after you renovate the property, your total mortgage balance remaining is $250k. Let's also say due to the repairs you've completed, the property appraised for $300k.

300k at 90% LTV= $270,000

300k at 100% LTV=$300,000

Then you subtract the first mortgage balance that you owe ($250K)

90% LTV=(270k-250k=$20k line of credit)

100% LTV=(300k-250k=$50k line of credit)

Hopefully that makes sense! 

Hello Bridget, like others have said the 3 that work for me and I prefer are:

1) Looking at currents rents on Zillow

2) Facebook Marketplace

3) Call local Realtors

I'm a investor and lender in CT and my brokerage in licensed in MA as well. Feel free to message me and I can give you some insights on the rental market down here in CT or recommend some realtors up there if you're interested.

Hello Sarah, if your current property is not FHA I would definitely recommend the 203k. If not, then you can use a Homestyle loan, the 203k's conventional cousin. After the renovation I would recommend getting a heloc on it while you are living there, and you should be able to pull 90-100% LTV with a local credit union without paying any closing costs or for an appraisal. (At least that's how they go in CT).

That's exactly how I started and will give you access to some seed money to get started, then you can use your VA loan to get another property as well. Just know, there are VA Renovation Loans, but they are very restrictive and require a lot of hoops to jump through. Off the top of my head I think max renovation is something like 50k with the reserves buffer included.

Will, I'm also in CT (Stratford) and this strategy is exactly what I did on my first property using a 203k loan. After finding a property that you can increase the equity on through a rehab, you can get a 2nd lien heloc on the property and since it's in CT, you can go up to 100% LTV through Nutmeg State Financial Credit Union. Megan Mofitt is the Senior HELOC loan officer there and I can give you her information if needed, since most of the tellers in the branches aren't aware of the special 100% LTV program for an extra 1.5% above prime. The best part is with doing it the heloc route, you don't pay any closing costs and the appraisal is covered by the lender(Only have to pay it back if you close out the heloc within the first 2 years).

As for finishing a basement in CT that can be a major value add if you can increase the SQFT AND OR ADD BEDROOMS to the property LEGALLY. That means at least 7 ft ceilings, egress windows for bedrooms, and just be weary of properties in flood zones.

I'm a lender and have multiple duplexes in Stratford and have done 203k loans, a flip and two new construction townhouse style duplexes (All in floodzones) and have many friends who have done basement renovations.

I host a monthly meetup that's meeting tonight at Bad Son's brewery tonight at 6pm in Derby if you want to stop by, or message me and give me a call and I'd be more than happy to walk you through it.

Good Luck!

Gerald, since your FHA loan is already in use, you can possibly qualify for a HomePossible loan at 5% down on a 2-4 unit. As long as you make under the income limits in the county you're trying to buy and only have one other property, this may be your best option. You or your wife can apply individually if combined you make too much money.

The bigger concern would be if you're going to be moving from a single family to a multi. It's not a terribly big deal, but you'll have to write a Letter of Explanation stating you intend to live in the property and understand that it's mortgage fraud if you don't.

Let me know if you have any other questions!

Hello Everyone!!! February 8th we're having our next monthly meetup and can't wait to see some old and familiar faces! We've had 35+ people at each meetup so far, so lets keep the momentum going and tell your friends. The Milford Real Estate Investors Network is a place for everyone whether you're just 
dipping your toes, or a veteran looking to up your business and connections. Brian and I will see you all there!

If the house is only going to be in your name, then there's no issue there at all. The reason behind why lenders don't like SFH to a multi-family is they doubt that you'll live in it and increases the likelihood of fraud. Now as Matt said as far as buying a house in FL, all you'll have to show is that your company is ok with and will allow you to work from Florida. If you can qualify by yourself, then that will enable your wife to use her FHA in the future as well if the house in jersey is not FHA or VA.