All Forum Posts by: Jamie McKenna

Hello All,

I'm looking at a 4 unit building.  I'm hoping to get a residential mortgage on this property and I believe you can get one for up to 4 units.  However, there is a large amount of unfinished space in the building.  Over the longterm, this unfinished space has the potential to add more units, but as the building currently stands, it only has 4.  The square footage of the additional space is larger than the square footage of the existing 4 units.  Would I still be able to get a residential mortgage on this property?  Thank you!

Hello All!

Two part question here...I'm looking at purchasing a 4 unit building that is assessed at 150,000 and is listed at 125,000.  The assessment is from 2012.  Does that mean if I purchase it for 125,000, will I automatically have 25,000 in equity?  Or do they re-assess it upon purchase?

Second part...The building has the potential to add 3 more units.  If I do this at a total cost of 75,000, my all-in cost would be 200,000.  How would I pull equity out of it?  How does the bank value multi-unit properties?  Off of the cashflow?  Thank you!

My partners and I are looking at purchasing a Homepath property.  As an investment, we would not be looking to owner-occupy it.  I found the link below on the Homepath website and it lead me to believe that because we are not looking to owner-occupy, we would not be able to purchase the property.  But then there are links for Investors on the Homepath website suggesting you do not have to owner-occupy,  Just trying to get some clarification and more information on whether or not we can continue looking at Homepath properties.  Thanks!  

https://homepath-activedt.netdna-ssl.com/content/p...

@Aaron Montague 

Thanks for the advice.  Would it be alright to give you a call sometime at the number listed? 

@Aaron Montague 

Thank you for the response! We are looking at non-owner occupied. Are you aware of any programs that might work for non owner occupied properties? I'd love to connect with you at some point to talk more about REI in this area!

Jamie

Hello All!

I was wondering if anyone had any updated information on Homepath financing. I am trying to avoid putting down 25% on my first property and was very excited to see the Homepath financing options...and then very disappointed to hear that it was recently discontinued. I've formed an LLC with two partners and we are looking for the best way to finance our first property. Thank you!

 None of the ones at $140,000 are nice, up-to-date 3 units.  Lot of them are singly family homes or rough looking 2-3 units.

Hello everyone!

I'm looking at getting into buying and holding and I have a question about a piece of property I'm looking at.  The property in question is a 3 unit that is currently listed for $50,000.  It's a total mess on the inside and I've gotten estimates from contractors stating that it would take about $100,000 to turn it into 3 nice units.  So my total investment would be around $150,000.  When looking at comparable properties in the neighborhood, not many have sold/are listed for above $140,000.  Should I care that I might be into this property for more than the average home in the area is selling for (granted none of them are nice, up to date 3 units) or should I only look at if my numbers work after getting renters into it?  Does that make sense?  Another (shorter) way of asking my question...If my goal is to buy and hold, does it matter what I am into a property as long as my numbers work when it's rented?  Thank you!

Great.  Thank you all for the help.  It sounds like going through a small/local bank is the way to go at least initially.  

@Jon Holdman,

Thanks for the quick response...that's exactly what I was looking for. I was hoping to get some direction on where to start when looking for the proper financing and I think you've answered that...local lenders...at least in the beginning. I've read that when looking for a REI loan, an LLC typically is not able to obtain a traditional Fannie/Freddie loan. Instead, you're looking at some sort of business loan at a higher interest rate and shorter term. It sounds like in your experiences, that hasn't always been the case. I think our next step is to start talking with lenders. Thanks again!