All Forum Posts by: Ken Seveur

I would add that I don't know the lender overlays, but you may be able to refinance the home into a conventional loan( perhaps with as little as 5% equity I'm not sure). Then you will be free to purchase again using FHA.

@Arionnys Honorio Welcome to the BP fam! I'm a newbie as well and also researching FHA heavily as of late since I currently own a home backed by FHA/HUD. Based on the numbers you provided and what we know about FHA: You are expected to provide at least 3.5% down payment. So for $290k, they will only loan you 96.5% and you come up with the remaining 3.5% at closing. Then there is mortgage insurance that you will have to pay monthly since you are financing more than 80%. The good news is that you might be able to find a fixer-upper that qualifies for 203k financing. This way you can finance the depreciated home and the rehab costs into one loan. Then you may be able to find property for $290k, I don't know the BX market. Also what you can try is find a lender to give you conventional loan with 5% down so you don't have to deal with federally backed loan limits. One more idea I just heard regarding FHA multifamily property, lenders will count potential income from other units into your debt/income ratio. So finding occupied/vacant multifamily may help you get financed for a higher amount. Also, if you have a partner you might try a "non-occupant co-borrower" that may help you get financed. There's a wealth of information online and youtube, just make sure the sources are as current as possible. Good Luck!

@OzzySirimsi thanks for the welcome confirmation. Im gaining a bit more confidence everyday by analyzing properties, listening to the podcasts, and asking questions 

@NedCarey thanks for the insight and suggestions. I know you post often and like many other investors who post on this forum have a great deal of credibility. Thanks

@OlaDantis thanks for the reply. Would you mind drilling down a bit your thoughts on hands on management? Do you mean in terms of the neighborhood/tenants, wear and tear? Or in terms of section 8?

Thanks @Ericg. I' not perusing this deal. I just wanted a bit of education on what makes a "good deal" at least from wholesaler. 

Thanks for the reply Nabeel. 90K was a rough hack based on a few other homes for sale in the neighborhood between 70-110 and completely unofficial. My main concern however, was just to get a general consensus on what questions to ask as to ascertain whether or not this is "generally" a good deal. I felt the same as you regarding if there is actually a tenant and that tenant actually wants to stay and they are actually paying 1300/mo. At that price/visual inspection on photos it looks like a great deal to my untrained eye.

In Baltimore MD

Hello BP fam. this is my first post as I'm a certified newbie. I'm learning how to evaluate deals and wanted a bit of help from the community. I'm not worried about "losing a deal" as I'm a couple months away from having finances available to deal. The property is located here: http://www.baltimorewholesalehouses.com/?cat=46&su... On the surface it is fully renovated, occupied lessee, neighborhood is not good, but not the worst, great positive cash flow, asking price is around 40% of market value (I'm figuring 90k). What am I missing here?  

Do you all believe this is a good buy/hold deal?

What questions would you ask if you're unsure?

Why is this priced as such?

Just to be clear, I'm not soliciting a deal or partnership, or financing, or anything. I'm just wanting some insight on a listing such as this one.

Thanks alot.