All Forum Posts by: Account Closed

I think many of the top tier markets are cooling.  I have seen rent and sale price decline in Aspen, CO and the best streets of Charleston, SC.

Anyone?

Hi guys:

I am in the process of doing a 1031 and am looking at HM/PM to make up the difference between the property I'm selling and ones in the area I'm looking at purchasing.  

I'm preapproved for a conventional mortgage but I want to explore HM/PM to be able to make a stronger offer.  This would be my first HM/PM loan.

What should I look for when I begin speaking with lenders?  Are there any valid certifications in this area of lending (for HM)?  Are there any red flags that signify someone that I should not work with in your experience?  

And are there terms that I should be paying attention to besides interest rate, points, other origination fees, loan length, extension clauses and prepayment penalty?

Any and all information/advice would be appreciated.

What a wonderful thing you're doing!  STL is not my market but I'm sure some new investor and charity will greatly benefit.

@Rhianna Raslan

The duplex on Grady?  Yes, that's a much better location.  However just to let you know, the UVA rental core north of the rotunda is mostly west of 14th st and south of Preston ave.  The other UVA rental areas are Lewis Mtn ($$) and JPA down to the split at Fontaine and west to Stadium rd.

So the duplex is in a gentrifying area with many houses being improved but I would not presume that it would be a student rental, if that's what you are looking for.  The traditional numbers wouldn't work (1%, etc) but mine never do in Charlottesville when they are newly purchased.

Personally I keep my eye out for student rentals (as does everybody else and their uncle) and SFH in the best two school districts in the city.

Welcome to Bigger Pockets Rhianna!

I am familiar with the property you are looking at.  If you know the area well, then you probably already know this but just to make sure- this property is located in a D area complex and is the only spot in Charlottesville that I know of that often has "leasing special" and "1st month free" signs out front.  

So, I would budget higher than normal damage between renters and higher vacancy than normal.  Given the overall very low vacancy rate in Charlottesville right now, I would be concerned that the renters are avoiding this complex and the vacancy rate is much higher than the rest of the city.  I would try to get the complex manager to give you a vacancy rate number, if possible.

Regarding a loan vs cash, though there are a few, many lenders will not do loans below $50k.  The mortgage origination costs will be a higher percentage of the purchase price and is worth looking into.  With that said, personally I use loans whenever possible and plan to continue to do so while rates remain low.

Another Cozy.co user here.  Free for ACH rent collection and easy to direct your own url to their application for credit and background check.

A family member used PayPal for a rental- their first and were hit pretty hard by a scam artist.  Payments made, then called back.  No mechanism to stop partial payments, which interrupt the eviction process.  Add the 2.9% fee on top of that.  

I use PayPal for my small business to collect some payments and it's great for that.  But not for rent collection!

Welcome from a UVA grad!  

To each their own but reading the latest market report-

https://www.charlottesvillesolutions.com/category/...

Charlottesville real estate is very hot at the moment.  3.3 months supply, 12 average DOM and new bandit signs put up and removed almost daily in the city.

I own RE here and it's a great place to be but personally, I think it's a terrible time in the local market cycle to be shopping.  I'm looking farther afield right now for purchases and waiting a few years to come back to Charlottesville for buys.