All Forum Posts by: Jeff Laniado

Thanks. To answer some of the questions above. This is with a lender from Florida because that's where the duplex is. I've called around and gotten a handful of more quotes.

It does seem like there are lenders that will allow for 20% down payment but with 2 points in fees. Those fees are 40% of the out-of-pocket savings and I obviously don't get the equity that I would if I just put down the extra 5%. 

So at this point I'm leaning towards the 25% down option to avoid points/fees or way higher rates. Currently at 4.375% for 30 year fixed with 25% down. I know I've had some lenders reach out to me from seeing this post, if anyone can beat this feel free to reach out!

I'm pre-approved for 25% and I'm okay with doing that if that's what's required, but would also like to limit my cash down if possible. I will try calling some local banks. Thanks everyone 

@Russell Brazil gotcha. And no way around that I suppose? I guess hard money would be an option but obviously higher rates

I’m under contract on a duplex in Florida and the lender I spoke with is requiring 25% down because it’s an investment property.

They said this would be the case with most if not all lenders.

Is that right? I’d like to only put down the 20% but not sure if 25% is going to be my minimum.

For context, I’m a highly qualified borrower (high w2 income, credit score over 800)

Hey BP'ers,

7 years ago I bought a co-op apartment in NJ and it was my primary residence for several years before I moved out. I've been renting it out for the last 4 years and it's been a great investment for cash flow.

Bought in 2014: $58,000

Current 2021 Value: $105,000

Monthly Rent: $1,200

Monthly expenses: $350

About 4 years ago, I paid off the rest of my mortgage but now that I'm doing more BRRR investing I'd like to tap into this equity. The issue is that I can't find any lenders to take a loan out on the property (because it's a co-op and an investment property). I've tried a bunch of different banks but wondering if anyone has ideas. Is my $105,000 in equity just stuck here? 

If so, is it worth selling this to get the cash out despite the great cash flow?

Hey Benjamin, makes sense. Didn't account for the higher interest rate and the management costs. Appreciate the feedback. What number do you think this property would make sense? $200,000?

Hoping to get some feedback on a property that I'm considering offering

I've dipped my toes into RE investing (currently renting a prior primary residence) but I've been a victim of analysis paralysis for years and want to do more.

I found an off-market deal in Tampa, FL through a wholesaler (I currently live in NJ) which I think is a growing market. My sister lives in Tampa so I'm there a few times per year and have a network.

SFH

$237,000

Taxes: $2,400

Currently rented for $1,500 / mo

The property is in good shape. The interior is very good, windows are 10 years old and roof is 8 years old.

I made 2 offers, one in cash ($212k) and one with financing ($235k), they've countered at $237k with financing.

It doesn't meet the 1% rule but it would cash flow right away with the current tenant. I could let the tenant renew in August or I could try AirBNB rental and probably make it more lucrative (but obviously more work).

Part of me is thinking it's a great lower risk opportunity to get started and I can put 20% down which I can comfortably afford and will cash flow right away. It's a growing market that I'd buy and hold in. It doesn't need much work.

The other side of me is reading about the eviction moratorium and thinking the market is going to burst and thinking I should stay on the sidelines.

Is this a good first foray into investing?

Are these good numbers for Tampa area?

First time poster, long time lurker.

Quick recap:

I bought a studio co-op apartment 5 years ago in the NYC area for $58,000. I got a mortgage on it (I was 22) and paid off the mortgage 2 years ago, it's not worth about $100,000. It's been my primary residence from then up until next week.

I've since got married and quadrupled my income but my wife and I are not sure where we want to live in 5 years, so we've decided to a rent a 2 bedroom apartment in the area for a year to have flexibility.

I plan to rent out my studio for $1,200 a month (taxes and fees are $400/month so great cash flow).

I also have about $100k sitting in a savings account that I would like to put into another rental property, most likely a 2 family home in the NJ area. Looking at duplexes in my targeted area at $250k, with rents that total approximately $2,500 / month.

Would it be silly to put $50k down and get a conventional 20% mortgage on the property while I have so much equity in my studio?

I've heard people here refer to "buying cash flow", is that what I'm doing here and why is that not a good idea?

Any feedback or suggestions would be greatly appreciated!