All Forum Posts by: Huy Ly

Hi BP,

I am looking at a property in a A-class area where is close to high way, shopping center, and big companies. I am pretty sure that my tenants are professionals because I drove through the property location. It is under condo association with HOA fee $191, and Community Fee: Cam, Lawn Maintenance, Snow Removal, Trash Removal (not sure how much). The deal is listed as below:

Price: 115k

Sqft: 950

Beds: 3

Bath: 2+1/2

Parking: 2

Rental: $1100/month

Is it a good deal for a A-Class area? If not, what is the price should be? 

Thanks

Hi guys,

Thanks for your responses. In this case, I am the one who will own the house. And I lease it to her with the option to buy it in 5 years.

Hi BP,

I found a buyer that is my co-worker, and I am thinking to put a Rent-to-own contract for her. Here is the scenario:

A. I am a beginner, and this is my first deal. I dont have any house available, but I have 50k cash to put down (20%) on a 150k house, and the rest of the money paying toward closing cost, and etc... My questions are:

1. 1. Should I let her select a house with my review before buying it? If she picks a house, I will be in charge of analyzing and making a deal with the seller.
2. 2. She would like to have a multi-family house so she can stay in one unit, and rent it out the rest. How does it work when she is under rent-to-own contract, but still wants to rent my house to others? 

3. If it is ok for her to rent out the units to others. How much should I charge her? Please provide your ratio analysis if possible. And how does the maintenance work? Also, should I let her pay insurance? 

1. 4. In term of putting the legal documents, what should I need on the terms? And who could provide those documents? 

Thanks,

Hi BP,

I am looking for my 1st investment, and I wanna check as many property as possile. In order to meet my criteria, I want to see the sellers' expenses before going on site to check the property. Can I request those expenses reports? And how I can ask them? Assume that I am looking for turnkey properties. Many thanks for your comments

FHA loan requires you to pay monthly PMI (insurance) since you put only 3.5% down payment. They are afraid that your loan could be default. If you have enough credit and cash, go for concentional loan unless you wanna use your cash to invest on other properties.

hi Jose. Very great details on the deal. From my understanding, the FHA loan requires you to stay in ome of the deplex so you may have negative cashflow when you first start. Make sure that you have enough money to get rid of the fha loan then you can move out and have some good cashflow

Hey Zach, to answer the question 1, could you tell more about your target area, tenant and the ages of the houses?

Anish - Thanks for your contribution. It is great to know more about your market area. So could you suggest Logan to invest in this property or any advise on his numbers?

Hi Logan,

There is some simple rule that you can go through when looking at the price and the rent of the property. The first rule is 1% to 2%. It equals to the rent divided by the property's price. In your case, it is 0.88%. It seems that the property is over priced. And @Phil Hong is right. You should account for tax, insurance and also maintenance. People come up with the 50% rule. 50% of your rent should reserve for maintenance and vacancy. For this deal, you should put $2400 in reserve, and the other $2400 cannot pay off your monthly mortgage. 

Hi BP,

I am planning to purchase my first property to rent. I want to start with a simple deal first so I decided to purchase an apartment which could be easy to manage. Let me start with some facts before having questions for you guys.

I am thinking to have a mortgage for my first 1-bedroom apartment properly about $180k in Center City Philadelphia. The rental around that area is from $1500 to $2000. Below is my basic math for my investment:

The 180k price tag is not negotiated yet. So please advise on the other expenses on this rental, and how to evaluate this apartment value.

I started work right after school on Jan 2015, and have no property on my hand. I have about 30k in cash. I am also married, and my wife is still in school. How should I have a mortgage on my first deal? What type of finance do I need?

Please feel free to share all of your thoughts.

Huy