All Forum Posts by: Kristi Harmon

What should I know and do before making a private/hard money lending deal with a borrower? How to reduce risks that I would get my money back if the deal goes wrong? Should I get an attorney and how much involvement I need from him/her? Tips, risks, and processes?

I have 2 single-family homes that i rent.

What are the current Utah laws concerning emotional support animals? Are there same laws for someone who is renting out a single-family home vs. apartment complex?

I've been contacted by someone who is interested in renting my single family house and she has a cat who is an emotional support animal. She says that she has a letter from ESA. I posted on my ad that i don't rent to people cats, but in this case, do i even get a choice to say no?  Can I charge pet deposit or pet rent with emotional support animals (or is it pretty much same like with service animals)? Who or how am I going to pay for the damages when she moves out and the carpet, pad and floorboards need to be replaced because it is soaked with cat urine?

I'm trying to hire a general contractor for my renovation loan project, which is a small project (installing carpets, appliances, water heater, light fixtures and bath fixtures and few extra small items). One of the contractors added 20% contractor's fee in addition to all the supplies and labor. Is that standard here in Utah right now? Same fees for new construction and small reno projects?  I'm first time hiring a GC and I don't know what I probably should pay for this project and to know if i'm getting overcharged or not. 

I'm buying an old house that has unpleasant smells. All the carpets are ripped out and the old wood subfloors are exposed (i suspect that is where the majority of the smell comes from). I wonder if I should use odor sealing paint, cleaner or lay something on the floor before installing carpets and vinyl flooring? I will be priming the walls as well with kiltz odor eliminating primer. Let me know what would be a good solution!

I think the easiest way to start is to find a house that you could move into for a year. During that time you fix it up and then you rent it. You will get lower interest rate and your downpayment will be 3.5-5%. 

1. Save some money--have around $15000 in savings

2. Find a lender and get pre-approved

3. Get an agent or you can buy houses on homie or redfin using their agents.

4. Start looking for houses. I would look for something that you can add value to (by updating flooring, kitchen, bathrooms, new paint, add an extra bathroom or bedroom etc.). However, I would make sure it is habitable, so you could move into it. 

5. Make sure the numbers make sense and you would actually make some money when you start renting it.

5. Put in offers. Your agent can be very helpful telling you what the house is actually worth in current condition and what the ARV would be. Be fast with your offers--good deals come on the market on one day and they will probably be under contract the next day.

P.S. If you can afford 20% down, you can get an investment property and then you don't have to move into it, plus by putting that much down, your monthly mortgage payments will be much lower. However, if it needs repairs, you have to be fast so you are not paying two mortgages at the same time.

I'm in a process right now trying to find another house to buy in Utah County and in Washington County. I have been putting in a lot of offers, but so far we have been overbid or the sellers have taken all cash offers. Tomorrow I will find out if I will get a foreclosed property or if I have to keep looking. It takes a lot of work to find a house here in Utah, but it is exciting at the same time as well.

Good luck!

That is right: Mountain America CU is doing 10% and 15% loans. You do have to pay 2.3% to MACU at closing with 10% down loan and 1.5% with 15% loan. The interest rates are also slightly better with 15% down loan. 

Which bank or lender are you using that lets you put only 3.5% down? So far we have been putting 5% down if we move in and 20% down for the investment properties. Just recently we found a bank that does 10% down on investment properties.

Need some references for General Contractors in Utah Valley! 

Currently, I have a few smaller projects on a couple of houses: carpeting/tiling floors, painting walls that contain LED paint, installing A/C and heating system, installing light fixtures, installing appliances, making sure electrical wiring is safe, installing recessed lighting, insulating/waterproofing medium size room in the basement. One house that I'm trying to buy with a construction loan might have settling issues (it has affected a section in the floor and crack in the exterior wall). I will probably need someone who could be available in a month.

Nice--good to know!