All Forum Posts by: Jasmine Claye

Thanks for that info Jon.

I actually used a loan of 55K @ 6% interest to get the PI, as I initially considered 55K the purchase price.

What are the monthly legal duties that would be needed?

Using your formula, do you factor in taxes, insurance, expenses? Is that why you divide rent by 2?

what is considered a good return on a rental investment?

I am considering a deal but not sure if the numbers are decent to even bother.

Purchase price: $50K

Yearly rental income: 15K

Yearly HOA: $3K (all landscaping, HVAC & exterior maintenance included)

Yearly Taxes: $700

Yearly Insurance: $450

Yearly PI: $3960

Yearly Avg expenses: $1.5K.

Not sure how to calculate the vacancy.

Rental Income - HOA - Taxes - Insurance - PI - Expenses - Vacany Allowance? = 5390

5390/12 = 450 per mnth CF

What am I leaving out?

I plan on using 2 loans to purchase, as one loan will be an equity loan from another property, which I will use as a down payment.

What is a good percentage for determining cash on cash investment?

Is it common for banks to allow 2 different loans on a single property?

I have equity in one property that I would like to use towards the down payment on another property.

Meaning I would have the equity loan plus another loan to buy the second property.

Just had very high hopes, but I pretty much knew I would have to put $ down. I plan to use the equity in my condo as a down payment.

I do prefer to find a duplex w/o the HOA fees. Just hope it doesn't seem impossible.

Sydney - I do not have skype, sorry . However, can u please give me the info I am missing in evaluating the deal?

Thanks a lot guys!

hello,

I am interested in purchasing my first rental property which is a duplex. I believe I have a decent chance of obtaining a loan however I would like a better idea as to whether it is possible and what to expect.

The asking price is 70K.

Both sides currently rented at 537/mnth. Mkt rent is 630.

I would like to buy at hopefully no more than 60K.

I do not want to put anything down (not sure if this really is possible but I hope so). If I need to put anything down, I could do $2000 cash. Or takw out another loan for thw down ppayment.

I have a 754 credit scrore.

I have 1200 in debt but I do not have mortgage or rent to pay.

Gross monthly income around 2.5K.

I own a condo free & clear which currently values around 28K.

Before I apply for any financing, I would like info on:

Does anyone have an idea on if I may obtain financing based on these factors?

What is the benefit of telling financial institutions I want to purchase an investment property vs a primary residence. With a duplex, could I even convince them that I will reside on 1 side & rent the other? Even if I really don't plan to. If I don't, I'm pretty sure financing is a lot more expensive for an investment property.

Is it common for duplexes to have HOA fees?

Is there any way I can determine term options on a loan before being pre-approved? Meaning, if I only want a loan for 60K, what are the chances of me being able to get a 30 yr. Term?

All responses are welcome. Thanks in advance.

No one watches the show??

What do you guys think about the Bravo TV show "Million Dollar Listing"?

For the most part, agents would you say the show is an accurate perception of the life of a licensed agent? Would you say the show could persuade someone who was on the fence to get licensed, to actually go for it?

Seriously, how do you find homes that are NOT on MLS? If you do not have MLS access, how is one supposed to know if the property is or is not on MLS?

But with lease to own options, the renter/buyer does not have a bank up front, correct? They have a contract stating that they will lease with the option to buy, in a period of 2-3 yrs. So, after the lease is over, and the buyers uses their option to purchase, then the buyer seeks financing from the bank, and the bank seeks an apprasial for comps.

OR

Is it because the renter/buyer and seller agree to a sales price up front, is the agreed on sales price based on the current comps and not a sales price that the seller thinks it will be after that time period, as he/she sees where the economy is heading?

Please help me understand this much, and thanks in advance for any info.

Well said, makes a lot of sense. Thanks so much for explaining.

Well since I am finding houses that don't have "hot" area recent sales for flips, would lease to own options work for these homes? I found a few investors that do these with sellers, so I figure this would be the best thing since the market is not so hot for quick flips.