All Forum Posts by: Ken Seveur

Looking for recommendation on good dscr lender to close fast on marthas Vineyard.  Must use airdna to run rental comps. 

Thanks 🙏🏾

I just purchased a tenant-occupied home via Ashland Auctions in Baltimore, MD. Purchase process went fine, no issues. Listing said tenant is on-time, but on month-to-moth lease. I figured not a problem. Prior to purchase, I reviewed current lease which was signed in 2019 for 1 yr and month-to-month thereafter. I thought no problem. After settlement,  my property manager speaks with tenant and turns out she just signed a new lease in March 2022! The house was sold in bad faith with seller knowing a new lease was signed, but failed to disclose that information. What options/recourse do I have at this point? Keeping this house, as is, is not within the plan at all. 

 I was told it last rented for $1200 section 8. It is listed for a bit more. I was being overly conservative. But at $1200/month with 4% vacancy, 4% maint., 4% cap x, $50 ins., and $158 taxes, net cashflow is $192 while mortgaged at 5% down and 5% interest. 

 I was being very conservative on the monthly rent. It last rented section 8 for $1200/month. But my question for today is how does refinancing yo a bank loan work in this case. 

 You lost me, sorry

@HarjeetBhatti thanks for the information. To clarify, if I'm making installments loans to a seller and there is an outstanding balance: 

within 12 months from that deal I can refinance that loan with a bank and:

Beyond 12 month from making that deal: I can do a cash out refinance based on the loan to value? Is this correct?

Also, whichever refinance option I choose, would I then have to make an additional down payment with a bank? 

What's up BP fam. I've found a potential seller interested in seller financing (contract for deed) through a title company. It's a fully rehabbed EOG townhouse asking $65k. What I'n thinking to offer is $4k down and $700/mo until paid in full. Market is around $850-$950 per mo. Assume we agree to terms. Fast forward, when/how could I go about refinancing to a  bank mortgage? Would I have to again pay 25-30% down? Would the rental income help me get approved for that loan? Would a balloon payment go to the seller directly from the bank? How soon after I settle on contract for deed with seller can I then refinance that property? Any insight on this would be greatly appreciated. 

Thanks in advance!

If my name is on the title along with my wife will it hurt my chances on future home loans, i.i. FHA or Conventional? My wife is solely on the mortgage since she makes good income. Should I remove my name off the title first before financing a house on my own? We are geographically separated and the new home will be my primary residence.

@Joshua Martin I'm curious if the bank calculated potential rental income from the other units as part of your debt/income ratio?

FHA 203k loans build in rehab costs so you're almost sure to have some equity with ARV. This should work with distressed 203k approved properties. A good realtor should be able to help you locate and analyze these properties.