All Forum Posts by: Mindy Pearmon

My husband was approved up to 140k.   I purchased our current home before we met.   With our 2 families now together we are living in a 1350 sq ft house with 6 of us and 3 bd and 1 bathroom.  We are on top of each other.   I can rent out the house for about 1200-1400 a month, it just needs to be painted and cleaned real good to get ready to rent.   No repairs need to be done.   We just want to make sure we have money for the gap and money to move in 5 years.

OR do we dump 40k into our current house by rewiring, putting in central heating and air and finishing the basement???  Just to break even when we sell....

Good Afternoon Everyone!

I have a question or 10, please bare with me.   I live in Baltimore and purchased my house in 2007 when the market was up.  I am currently about 20k underwater.   My solution is this...purchase a 2nd house that is larger (which we desperately need), under my hubby's name only.   That way he is considered a 1st time home owner.  Purchase a foreclosure and rehab for under 130k with a 203k loan and then rent out our current home.     The plan is to move in 5 years.  Make sure that the 2nd house we buy has a resale value of 180k or more.  That way when we sell both houses we can pay off the new loan and fill in the 20k from the original house.  Does this make sense???   

I'm freaking out that we will be 260k in debt in mortgage loans!   But I also know that we won't have the money to pay to fill in the gap when we go to sell in 5 yrs.   I order to break even in the current house we would need to put in about 20-25k worth of work (re-wire and forced HVAC).

Please help not sure what to do!!!

That was the 1st route I took. And you're right they have the $ BUT they aren't risky people AT ALL. Very 9 to 5 oriented

okay okay!!! I give up!! You guys win. I'll be patient and diligent and save and save some more....

Thanks Dave. The reserve money I'm not worried about. Fortunately I have a hobby of collecting credit cards. Thankfully though they are all paid off. I have about 30k avail to me. And the other reason I'm jumping on this house is because I know the history. New windows, roof, elec, plumbing, furnace, basement is in better condition than mine! An older women lived in the home and then the family auctioned the house. An investor bought it did all the repairs, rented it to 1 section 8 person for 4 years, and then forclosed last fall. I've been in the house. It needs an undated kitchen,the floors need to be refinished, a couple of new doors, and a fresh coat of paint. The other thing I noticed do all investors have contractors? I'm a DIYer but I was also going to purchase a home warranty policy for about $350 a year so I won't have to come out of pocket if emergencies happen. Does this not make sense?? Or am I being niave?

No problem! If it has only been a year since it was jetted then you probably have root intrusion. See if the plumbing company that is jetting your line will put a camera down the line once it's clear at no charge. If they do excavations it may be worth getting the line either spot repaired or replaced especially if they are terra cotta lines. If you don't have the money another option would be a preventative maintenance service once a yr. Normally if you do that they won't charge you the same it'll be at a discount.

Thank you guys so much for the feedback. @Robert - I already looked into the Homepath Reno they want you to live in it. The comps in the area are selling from 100k-135k. The 25k would be for things that are cosmetic that is on the high end. It already has new plumbing, elec, roof, windows, and furnace. And the 7k is for a mid level kitchen. I don't know I guess I thought if I can qualify for a 30k car with 2% interest over 5 years. Not including the hike in ins. Then I should be able to swing this on a loan that is over 15. Here are the numbers in all: 200 mo/loan - 337mo.mortg - 30/mo home warranty, - 175mo/prop tax. IS there anything else I'm missing??? Fortunately I have a job that I can work as much OT as I like. I just don't have anything to loose at this point...

OOh Sydney do you know a decent real estate agent? My parents are looking to purchase a winter condo in Myrtle Beach. My dad is a golfer so he's looking for on a golf course or beach front.

I live in a mixed neighborhood of longtime homeowners and there maybe 4 section 8 homes.

I agree the financing part has to go without a hitch. The monthly payments are manageable with the property empty for up to 6 months. Then things will get tight. I am hoping to get it cheaper but from what I heard Homepath is a bit of a stickler on prices for the first 90 days. I am a DIYer and the kitchen is small might take a weekend to get it in if there are no surprises. I'm not worried at all about it renting to section 8 the list is years long here. It's the financing part that has me worried. I don't know if banks will do it. And I don't know when I would be able to or how the home equity line of credit works with a personal loan and mortgage already out. But that's what I would like to use to pay everything off and it would end up being about 700 a month cash flow once that happens.