All Forum Posts by: Jesse T.

While there is the hassle of living in unit during renovations, it also lowers your risk.  As you point out lowering your housing costs about $500/month.

How much will renovations cost?  Will you have funds to cover it?  Even if you have cash you should have a placeholder for a monthly equivalent in monthly costs.

I think a lot of wholesalers would be better off getting licensed.  It isn't a huge barrier, but it means you learn a minimum about Real Estate.  While individual deals have more profit as a wholesaler - there is the potential to be involved profitably in a lot more deals with a license.

It generally means selling on the MLS(Multiple Listing Service) usually with an agent. A lot of flipping models involve getting a discount by buying a property that hasn't been listed on the MLS. Note just because a deal is a non-MLS deal, doesn't mean it is great for the buyer or conversely that an MLS property is overpriced.

Which side of the situation are you on?  In either case it is likely worth paying to get some legal advice.

I think the combination of 2, 4 and 6 is going to be hard to meet.  In general Maryland will probably get you closer to DC for the same price.  One thing to watch for with condos is the price might look good, but the condo fee is essential the same as financing 100K(or even more).

I generally would side with the not renting crowd.

It sounds like the best case would be 12K gross.  How does the fit in the overall deal?

How did the price on the property compare with a vacant lot?

Wow that is a crazy story.  Glad it worked out well.

If the house is clearlyw worth 200k or more, selling makes a lot of sense.  If the house is pretty thin on equity and the loss is narrow it is a less clear cut situation.

Just a non-owner occupied mortgage.  Typical the rate is higher than owner occupied and the down payment requirement is usually 25% vs. 20%. 

One option might be to make an offer of 2 or 3K more for a financed offer vs. HML.

I am not very familiar with HML, but the underwriting fee seems steep for the loan size. It is essentially another 3.6% in points. You could easily end up paying 20% in interest for year of using the HML. It could be close to 30% annualized if you refinance in less than 6 months.

Why are you using HML vs. just starting of with an investment loan?

The rent/price ratio does look good.  One thing about a high ratio of rentals is it does tend to limit appreciation potential.