All Forum Posts by: Mike D.

Haha glad I could help tad! And thank you for the info

Thanks for the reply David. It is a full 203k and she is a specialist.

When you get a pre approval and the bank runs a credit check, how much does it negatively affect your credit score?

Sorry for the formatting. I tried to make it easier to read but it obviously didn't work.

I am looking into purchasing my first property, an owner occupied duplex. I got pre-approved with Wells Fargo and I was given this "Approximate Loan Cost Illustration". Being my first purchase, I don't have anything to reference. Is this normal or should I be shopping around? It is a 203k loan and they quoted me at 4%.

ORIGINATION CHARGE 2,952.54
CREDIT REPORT(S) 11.77
APPRAISAL(S) 685.00
FLOOD LIFE OF LOAN FEE 19.00
TAX SERVICE FEE- FHA 80.00
CONSULTANT FEE-RENO FHA 700.00
TITLE INS-LENDER COVERAGE 25.00
TITLE INS-OWNERS COVERAGE 1,000.00
ENDORSEMENT TO TITLE-ALL 100.00
CLOSING/ESCROW/SETTLEMENT 1,145.00
RECORDING FEE - DEED 140.00
RECORDING FEE - MRTG/DOT 260.00
STATE TAX STAMP - DEED 868.00
SURVEY 750.00
PEST INSPECTION 95.00
COURIER/MSNGR-3RD PARTY 100.00
FHA UPFRONT MIP 3,124.91

Estimated closing costs amount to just over $12,000. Purchase price for the duplex is around $180,000. Removing the upfront mortgage insurance premiums(3,124) drops the closing costs to around 9k or 5% of purchase price. Is this typical?

Your tenants will not be hiring help to clean your apartment. The condition of their car is probably representative of the condition your unit will be left in.

Mike,

Most people on this site factor in all units in situations like this to evaluate the deals potential despite the fact that you will be occupying one of the units . So 3,100*.50 = 1,550 available for debt service. Based on your numbers and the generally accepted 50% rule, the true cashflow(fully rented) is 333/month.

1,550 - 1,217 = 333 fully rented cashflow

Most people on this site shoot for 100/unit

How far below market value is unit #4?

Are you saying you have enough to cover a 20% down payment on a 95k house? If i'm understanding you correctly you have roughly 20k to work with.

I'm also from the central jersey area and I've found that the taxes on single families pretty much kill any cashflow, but as you get into some two or three family homes the numbers are a little better.

Look up Chris Masons. He posts about multi-families in north Jersey. Have you thought about purchasing a multi-family in living in one of the units?

Does anyone have a recommendation for a lawyer in Monmouth County, NJ?

That's a nice looking house for a warzone

http://tax1.co.monmouth.nj.us/cgi-bin/prc6.cgi?menu=index&ms_user=glou&passwd=data&district=0801&mode=11

I don't know about that specific area, but Newark as a whole can be a rough area.