All Forum Posts by: Kevin K.

@Geoffrey Conventional loan, 10% down

I've purchased a HUD condo for 76,000. I expected closing costs to be somewhere in the 3-3500 dollar range. I've just been given the HUD addendum listing seller payments and buyer payments, and the total I owe in costs in almost 8%. (6k) I suppose I should have expected more but my realtor told me to "expect to pay in the area of 3-4%" ($3,040) of sale price. Almost 4k of these costs are tied up in "Title services and lender's title insurance." This seems unreasonable to me but it's my first go at this, so I'm not sure. Luckily this is a property I intend to live in so I'm not overly concerned with any data for flipping or profit, just in a bit of shock at how high the amount has risen. Any thoughts?

I placed an offer on a foreclosed HUD property a couple weeks ago. The offer was accepted so I proceeded with my realtor to sign all of the documentation and get everything squared away. After some hiccups with the realtor's broker, he was able to send out the documentation in time to HUD (this past friday).

Sunday evening, I check to see if the listing is still posted on Redfin, and it has resurfaced as a foreclosure, not for sale.  

Anything unusual about this listing? Is this a typical scenario to wait and see, or is there some kind of action I should be taking.  Unsure of typical protocol on HUD properties in this regard.. 

I've come across a condo for a good price that is rentable close to my work. It's a HUD property that I've seen and know it needs some work, but nothing drastic, I'd say 5k at most which I'm comfortable with. I figured I could buy it as owner occupant and start saving for the next purchase while I'm living there, but also don't want to be stuck there for a terribly long time.

Does anyone know the HUD occupancy requirements?  I'm finding time frames online that are varying from 12 months to 36 months, and it's not a property I would want to be locked into living for 36 months. 

thanks a lot for the quick response zack. my price at 20% down is 150k that I can spend which is not a lot for my area. 

Does it make sense to buy a cheap condo with an FHA loan at 3.5% down, and have some cash still left over for the first imvesent property fund so I don't have to empty it completely. My concern is a bank will have issue with a second mortgage taking on all that debt and not having an acceptable DTI

I'm looking to get involved in my first real estate purchase.  I'm not sure which strategy is best and I'm hoping for some advice or maybe a path I hadn't considered.

I also need to purchase a primary residence leaving from the apartment. So my logic is as follows, please tell me what you think if you don't mind. Any tips are welcome.

Option #1: Buy a single family home.  I've placed some offers on really good deals, but have been outbid multiple times thus far.  Finding good deals within budget (I've only got 30k to put down) is rare and I don't have the capital to compete with other bidders.  So the thought would be to buy the house and immediately begin to plan my next house purchase, this seems very time consuming however.

Option #2: Buy a condo.  Provided I can find a cheap condo, I would be able to pay it off sooner than a house most likely and begin to work towards a down payment for a rental property. The lower price point of the condo might also work if I'm able to rent out the condo.

Option #3: Buy a 2-flat: I've taken a look at a few in my area, and only one so far has been economically feasible, but it had a noticeably sloping floor that scared me away from the deal.  The others seem to break even or lose a few dollars per month when factoring for all the vacancies and upkeep. The deals are rare, but they could be found and have half my mortgage paid while building equity.


Option #4: ???

I know the post is long but I need some input from the pros! Thanks for taking the time to read. If you need any other financial info I'd be happy to share anything.

@Michael McCartney

That's a really interesting idea though

I've looked through some of the topics on BP regarding garage rentals.  Most deal with renting them out to 3rd parties not related to housing.  I'm looking to purchase my first duplex now which comes with a detached 2 car garage.  Is it commonplace to offer tenants $50/month to rent a space in the garage? If so with two units how can you be certain another tenant isn't occupying the garage and splitting the rent?

How much should I bank on an extra $100 a month for the 2 spaces, with no driveway, and limited street parking?  Is it something you guys factor into your number when calculating income generation?

Thanks guys.

@Zach Sikes I'd love to get some recommendations if you have some

Hi forum, I've decided to obtain my real estate license in the state of Illinois.  I've checked out a few places but most places tend to lack any online reviews.  Would anyone be able to suggest a program they thought worth every penny and adequately prepared them for the real estate business?