All Forum Posts by: Stephen Schoon

Quick question for the Dayton crowd:  I'm looking at an auction on auction.com.  The site says the home is occupied. Obviously, if true, that presents a complication. Do you have any experience or second hand stories of how complicated this 'typically' can be in ohio/greene county area?

Thanks!

Steve Schoon

Good day all,

I'm looking at auction.com and see an auction that has a reserve of 123k, but the starting bid is 35k.  While I understand the bank may sell to the highest bidder even though it might not reach the reserve, I'm wondering how many of you all have closed on auction.com auctions below the reserve?

I'm also very curious as to why the opening bid is so low compared to the reserve.  Does anyone have any insight on this?

Thanks!

Steve

congrats, @Justin Frye !!!

Good to know, @Christopher B.  If i find the right property, I'll definitely pursue this avenue further.

@Robert Ellis fair enough. have you personally seen them lend on as residential? if so, please shoot me those lenders. tyvm!

@Chris Mason @Rory Cummins

just an update. regardless of the financing, a property walkthrough proved this to be a poor investment for what i want to achieve. i did email my finance guy what you said, Chris, and he wrote back this. seems to be a combination of his underwriting guidelines and the uncommonness of the property: 

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With regards to this California guy who seems to have lots of “single family residences with a detached accessory dwelling units” in his neighborhood (which might be an accurate description, but is a tongue tangler and not really used in common vernacular), Columbus unfortunately does not, so these types of properties are difficult, if not impossible to find comparable sales nearby and in the last 6 months, so they really can’t be appraised. As I understand the way guidelines read, some properties could fit conventional loan guidelines, but only if the 2nd unit provides minimal value to the property. In other words, if you have a $500,000 home with a cottage or guest house in the back, and the appraiser only gives the guest house minimal ($40,000 maybe???) value, then you could get conventional financing for that property. Ideally, there would also be lots of good comparable sales with guest cottages on them, too though!

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/shrug 

onward and upward!

@Chris Mason  i'll talk with my finance guy as you recommend. much thanks!

good call on the subdivide. It's on an acre of land which makes that nice, but the way the houses are set up would make it a very difficult split. Regardless great idea!

 He's a good friend of a good friend and i used him on my personal home a few years ago.  He's also an investor and works for a local bank that does portfolio lending. Perhaps it's just their rules? That's kinda what im trying to gauge before i go too deep into this.

Thanks for the reply!

Hey all, 

I'm offering on a property (in columbus oh) and my finance guy says he can't lend conventional fixed rate because  it's a non-conforming property.  It's one lot, residential, with 2 separate living structures on it.  While, I understand what he's saying, I've never heard of this being an issue before.

Was hoping for some insight. Thanks!