All Forum Posts by: Jason Albasha

 Get a new accountant. 

@Sung Park

I haven't read through the other comments yet will tell you a few things off bat, no particular order:

1. One bedrooms appeal to a very specific consumer, therefore you're better off with 2-3 bed condos. You'll want storage space or an extra room either way, as your space is limited. They're also more versatile. People room with each other, etc.

2. The less units, the more difficult it is to cash flow. This is when you decide to move out, you'll most likely be looking at selling. I'm not saying right that minute yet eventually you'll realize you can put your money to better use than paying an HOA.

3. HOA's vary in cost and what's included. Always double and triple check what the HOA covers, your attorney should do this. Some are more worth it than others. When I was looking at condos, it was an easy qualifier (filter search field) because what could they possibly offer over $600/month that's worth it? Pool, gym, heated parking, etc. Even with all that, I wouldn't personally pay over $500/month. It's not like you'll find a $2,500/month HOA that offers nightly foot massages lol

4. From a lending perspective, high rises are higher risk, and so you'll pay a premium for your loan. Ideally if you can find something that's only, say 3 stories, you'll get a better rate than the same exact unit in an 8+ story building. 

Maybe I'm missing your point.

He said Rocket quoted 2.375%. From your comment, "OP is thinking of calling Rocket's consumer direct channel though", isn't in line with what OP wrote...? 

If they're close enough in time, they'll be lumped together.

The upside of investing is much bigger than any potential downsides. With that said, keep an eye on your credit, of course, yet I wouldn't be overly concerned. 

I'm a mortgage broker who works with Rocket as one of over 20 lenders. They honestly make things easy. I have a relative who works there, he showed me their app and it's pretty cool. That's $2,400/year, over 30 years is $72,000.

Also consider that this money is paid post-tax, so it's really $3,200 raise in "salary" if you had a job. That difference will get you out of PMI quicker so pay the extra, then hold the loan; at 2.375%, that's free money.

I see no reason why not to go with Rocket, your local lender is going to sell that loan on the secondary market anyway. 

Your interest rate will depend on the property, your credit, income, DTI, LTV, basically a bunch of factors. No one can tell you if it's good or not unless they see all this information.

If you have low credit and high DTI, and you don't have much equity then yes, even 8% could be good, you're lucky to even get a loan.

@Daniel Sabato Call and ask. If it sounds like they're taking you for a ride, then get an attorney.

My cousin tried ending his contract and they pushed back, saying that one of the units that they rented out needs to stay with them until the lease is up. Things got a bit messy. 

@Michael Johnson

Congrats on the closing, I wish it was under better circumstances. Definitely call your agent and attorney. Worst case you'll have to open a lawsuit against the seller to try and recoup some costs yet the deck is stacked against you.

Cash for keys will definitely be the best route. You aren't just losing monthly rent, you're also putting at risk $10-20k in damages the tenant could do. DO NOT GIVE THEM ANYTHING UNTIL THEY ARE COMPLETELY MOVED OUT.

Unfortunately, squatters are treated as non-paying tenants and we don't live in Indiana so the process is drawn out here. Thankfully the weather is getting better and the moratorium should be coming to a close.

Consult with your attorney, yet if he's willing to pay the rent you're requesting, you might be better off taking the rent and letting him stay, at least until the moratorium is up. I see 2 scenarios here, if we assume this will end in an eviction regardless.

If he doesn't pay, he's a squatter who's treated as a non-paying tenant. If he does pay, then you collect until you decide to not renew his month-to-month lease. You may have to evict him in the end yet at least that's on your terms, and you recoup some costs during the moratorium (as in lessen the amount of payments you miss because of the eviction process).

Remember, the moratorium will end, yet who knows how long it'll take to make their way through all the evictions. Might be a year, no one knows.

Lastly, keep in mind that this is temporary. It's a great learning experience and over the next 5 years, 10 years, etc. the financial burden this will present is simply a blimp. You still made a great investment. Good luck! 

@Justine Veal A good tenant would prefer owner occupied, as they know any issues will be addressed immediately and the place will be kept up with. "Wait, you mean it's just me and you living here? Nice!"

The noisy, obnoxious tenants you don't want anyway are the ones who prefer non-owner occupied. I mean what the heck are you doing that you need to hide from the owner what you're doing, not just inside your unit, yet outside too? 

When I first bought an investment property (non-owner occupied), I tried beating around the bush yet anyone with some common sense can figure it out. I mean if they really want to, all they have to do is go to the Cook County Treasurer's website and type in the address to pull up the tax records, literally takes 10 seconds.

Those who don't figure it out are the type of people who really honestly just do not care. This is for non-owner occupied.

For owner occupied there's absolutely no hiding it. "Oh I'm the property manager who happens to live at the property" works for 2-3 months yet eventually it's obvious. A property manager comes with a set of keys, maybe some paperwork, for a specific reason. They don't hang out in the back yard and garden.

While you are technically the owner and therefore the property manager by default, from experience, they'll figure it out and then there's an awkward conversation/mention. Ultimately, I think the tenants don't really care, yet we think they do.

Hi N'Dambi.

There's still some actively online yet the in person meetups have pretty much fizzled since COVID. I'm excited for the summer, hoping things open up and people can get together again.

Networking online just doesn't work quite yet.

@John Warren - Any plans as to when you'll do in person again? Or is it still undetermined? I'm guessing the latter yet gotta ask!