All Forum Posts by: Jonathan Bombaci

Yeah that's my first question, did you use a real estate agent? Hopefully you had your own buyers agent and didn't rely on the one you meet at the open house. Did you have a lawyer involved in drafting the purchase and sale agreement (P&S)? It's all going to come down to the sales contract. Your agent and lawyer should have put a financing contingency into the offer and P&S or explained the risks involved by not having it. If the financing contingency is there, and no one screwed up those dates, you should be able to get it back. If it isn't you should complain very loudly to whoever worked on the P&S. If you had a team in place for the deal someone should have picked this up and covered you. If you lone wolfed the deal and this was missed they can definitely keep the deposit.

Kenneth Corb - KSC Contractors in Waltham - He was referred to me by a fellow agent Anthony Bianchino you can tell him you were referred by him. Goodluck!

Kenneth Corb - KSC Contractors in Waltham -  He was referred to me by a fellow agent Anthony Bianchino you can tell him you were referred by him. Goodluck!

 Yeah most banks want written permission or he can call them and give them permission to talk to you. Either should work.

Inspections cost $$. I’d do the du-diligence, talk to the bank and see if the deal makes sense. Then get it under contract with an inspection contingency. Once you have it under contract pay for the inspection. You wouldn’t want to pay for an inspection then have him change his mind or realize the deal doesn’t work financially. 

Seems a bit tight, and that's assuming the $800 includes taxes and insurance. If you could get the rent up to $1300 you'd have a shot. If you can make a master bedroom in the basement maybe with a 1/2 bath for $5-10k or find space for a 3rd bedroom on the main level it could cashflow. You could try to scoop it up, clean it out, refinish the cabinets and throw it up on MLS. If ARV is $140k then throw it up at $135k and hope for the best. You could pocket $15-$20k before taxes which you could use in your next deal. But you'd have to see if it's worth the risk/effort.

Sounds like the conversation went well which is awesome. Helping people out of a tight situation is why we get into this and I hope it works out for everyone. Just make sure at the end of the day you’re getting paid for your time and effort on everydeal.

Rule #1 don’t lose money

Rule #2 see rule #1

Ask to talk to their current landlord to verify there have not been any issues. if they pay the $600 late every month if are behind then that’s not a tenant you want. 

If you plan to live in it fha loan will let you buy for 3.5% down and depending on your market you maybe able to have the sellers pay you’re closing costs. If you’re looking as an investment property and do not plan to live in it then most institutions want 20% - 25% down payment. You’d need seller financing or something creative to reduce the downpayment beneath those ratios. 

Best of luck!

Yup I do this with first time home buyers on FHA loans all the time. Must be 4 or less units and one unit must be delivered vacant.

Hey kris we’re in du-diligence period which is why I’m asking if we should go through with the deal. 

As stated before the 1% rule is just a rule of thumb. In my market I need a 2% -3% rule for it to make sense due  to higher property taxes and heating cost. If you like the property you need to run the numbers and see if it makes sense. 

At a high level, if $1200 -$1500 is the market rent then I think the price is just to high. 

At $720k if you put 5% down you’re looking at at least $4500 probably closer to $5000 a month for mortgage, taxes and insurance. If you rent 3 apartments for $1500 each and have no vacancies, no repairs, and every tenant pad on time forever (which is I mpossible).. then that’s $4500 a month in rent. So to live One unit you’d have to pay about $500 a month to cover the gap. But then you’ll have to come out if pocket to pay water, sewer, house electric,  and do the landscaping and maintenance yourself.

So basically the best case scenario is you give the bank $40,000 (5% down payment) so you can pay $1500 month to live in an apartment (which is market rent) while exposing yourself to a lot of liability, work, and potential to lose some money. And that’s pie in the sky absolute best case scenario.

Love the idea and househackimg is an awesome way to get started or to grow a portfolio. Just be patient and make sure to find the right property.