All Forum Posts by: Jonathan J.

Quote from @Ned Carey:

@Jonathan J.
    "Based off some quick calculations yes."

I took a quick look at rents in the area  2000 a month for a house worth $325k~ is not a particulalty good investment. You may be missing a lot of costs of managing a rental in your calculations. 

Where are you see rent prices at $2k? Because I would 100% agree with you that it's not wroth it.

My Buddy's house just rented for $1,895. Needless to say my house is 1000 sq ft larger, has one more bedroom and 2 more bathrooms (1 full, 1 half).

For similar styles homes in my area and zip code I'm seeing rent hovering between $2350-2395. As far as my for my homes value as it sits right now estimating $315,000. Comps that are currently on the market that have start at $390k and shoot up to $515k. New construction is hovering $599k.

Cost that I'm looking at are:

- Property manager cost at 10% of monthly rent

- Landlord insurance

- Maintenance and repairs fund (to include preventatives maintenance/pest control)

I'm not going to pretend to be expert, because I'm not, if I'm forgetting or overlooking some cost pls advise.

Quote from @Scott Johnson:

That's a hard one, brother. While it may be in the realm of hard money based on the equity position at  $350,000 value, it's still cutting it really close and I'm not sure what lender will lend on an owner occupied. 

There's a large amount of work that needs to be done, it seems, so a secondary may be your best bet on that one. If you're doing all that work, what's to keep you from selling it, cashing out (since it's your primary you should have little to no tax burden, and using the funds to buy a rental?

Depending on the location, that may be your best bet.

Not sure I feel comfortable looking to hard money loan without a refinance. The main factor keeping me from a refinance is the higher APRs.

I am looking to do some repairs myself and the help of my carpenter buddy, however anything that requires specific skills (ie windows) would be done by a contractor.

Buying a duplex is SoCal is very cost prohibitive, and I don't intend to stay their longer than3 years.

Quote from @Ned Carey:

@Jonathan J. Why do you want to keep this as a rental? Will this have net positive cash flow, net after all expenses? My guess is no.

why not sell and invest the money in something that might be a better choice. 

Based off some quick calculations yes. 

The reasons to keep, would be home is located in a military town, people are always looking to rent.

When I move, I only expect to SoCal less then 3 years, so mot looking to get into the SoCal market as property prices out there are crazy. 

I'm been a homeowner since 2011, long story short I got way too much house (2500 sq feet, 4 bedrooms [to house a blended family], etc) for my income at the time, and the legal issues I had shorty after closing didn't help either. Needless to say over the years I maintain the house in usable condition, and made any required repairs. However, I never had the budget to update the house with current trends, or fix some wear and tear items (ie flooring, windows, old appliances, etc). 

I got news earlier this years that I would have to relocate to the SoCal for my next position. I was planning on appling for loan when I was 6 months or less from moving to fund the rehab of the house so I can turn it into an investment property.

But like clockwork, as soon as leave the country for a business trip, something breaks. (The last few trips the washer broke, dishwasher, HVAC capacitor). Well got the call yesterday that my AC was not working at all, after a quick inspection by a tech, they found a leak in my evap core, and since the system is older R-22 refrigerant system that been been phased out, I'm now looking at new loan with Ally bank for just over $13K (had two 0% APR choices. 1) 0% and 0 payments for 6 months, or 2) 0% for 18 months and min payment of $325ish due within next billing statement). I chose option 1 so I can paid odd the Ally Loan with the loan or worst case, tap into savings to pay in full before 6 months.

I'm looking at the possibility moving in March or April of new year, meaning I was planning on applying for the loan by Oct23.  

Depending on when this Ally loan reports to the credit reporting agencies, I would now have a new loan on my name that was opened within 30-60 days. From my understanding banks like to use the older FICO models for Home Equity and HELOCs. Should I plan on applying earlier to have a better chance of a approval? Or wait and take action on my original timeline? 

Also I didn't want to touch any savings, just in case I have to put cash towards rehab and to cover housing cost in SoCal until my raise takes effect to cover the differences in housing cost.

Numbers:

Estimate Home Value: $315,000-350,000

Outstanding Principle: $201,000ish

APR : 3.25% ( was variable at the beginning of loan)

Home Build: 2003

Projects I'm looking to complete before rental ready.

- New HVAC

- New windows (current ones are cheap and don't stay open or lock properly)

- Replace flooring (downstairs is carpet and vinyl, upstairs is all carpet)

‐ Update kitchen (counter tops are formica, replace old appliances, paint cabinets)

- Update Master Bath (replace counter top due to cracks, new paint)

- Repair front porch due to small fire (damage some floorboards and railing)

-Trim or cut very large Gumball tree down

- Garage door panels replacement 

- Small siding repairs

- Repair wear and tear on walls and paint the whole interior.

Thank you for the good info. Two out of three Law firms are with 10-15 minutes from.

Looking to begin real estate journey in the Hampton Roads area. Looking for recommendations on Local Title companies that allow assignments of contracts (preferably in the South side i.e.: Chesapeake, Norfolk, VA Beach).

Thanks