All Forum Posts by: Jack Perfett

@Danielle Du Plooy @Austin Mullen @David M.

If money is of no issue for covering the closing costs would you still recommend pursuing the assist or do you think it’s better to just pay the closing costs out of pocket.

Thank you for the responses!

@Stacia S. @John Knisely

I’m sorry I should have been more specific. This property is in Montgomery county so the transfer tax is 2% (1% paid by buyer, 1% paid by seller) I just double checked with my loan officer and he referenced me to the state website that had the transfer taxes for each county.

Hello!

I am currently in the process of purchasing my first multiunit house hack in the Philadelphia area. I am using a 3.5% down FHA loan and have received a loan estimate on a property. The property is $425,000 and the loan estimate says my closing costs will be $22,922. Is this right for the Philly area

 or is this extremely high? When watching Brandon evaluate deals he's usually around $7500 in closing costs for this price range of a property.

I have added a picture of the loan estimate for clarification.

Please let me know and all answers are appreciated.

@Nick C. @Caleb Brown

This is the loan breakdown. The 22.9K is not including the down payment. A picture is shown below.

Hello!

I am currently in the process of purchasing my first multiunit house hack in the Philadelphia area. I am using a 3.5% down FHA loan and have received a loan estimate on a property. The property is $425,000 and the loan estimate says my closing costs will be $22,922. Is this right or is this extremely high? When watching Brandon evaluate deals he's usually around $7500 in closing costs for this price range of a property.

Please let me know and all answers are appreciated.

Hello BP Community!

Two questions both pertaining to Mortgage Insurance. This is assuming I will be house hacking a multi family using a FHA (3.5% down)

1. When analyzing a property do you include the mortgage insurance? (Even though you can refinance to a conventional once at 20% equity)

2. How long will it take to build up to 20% equity?

Thanks in advance!!

-Jack Perfett

@Bronson Simmons

Hey Bronson! In terms of the contingencies you can include to prevent you finding something that will evaporate cash flow, use a inspection contingency. An inspection contingency will allow you to have a professional inspector come in and unveil most if not all of the issues you will have with the property! If you find major issues you have the right to pull out of the deal.

Good Luck with your investing!

The best way that I found for myself was to take a designated amount out of my paycheck the second I got it and deposit it in the highest yield savings account I could find. Having the money out of my checking account didn’t make me miss it and certainly didn’t allow me to spend it!

Hello BP community! As a start my real estate journey the first course of action I need to take is getting Pre-approved for a loan. My plan is to use an FHA loan with a co-signer to increase my odds of being accepted. Has anybody used a co-signer on an FHA loan before and if so do they have any lender recommendations for the Philly area.

Cheers!

Theoretical Question Here.

Say I have been allotting 5% of Rent for vacancies, but have been long enough to have a great long term tenant that has been in the property for 4+ years. Is it ever acceptable to move any of the saved money for vacancies into the income category. Would be interested to hear your views on this!