All Forum Posts by: Liam Cordray

hey everyone I'm looking for an architect in the queens NY area. Has anyone here worked with one before?

thank you

liam

when you draw on the HELOC say 10k is that 10k locked into the interest rate at the time of drawing? or is it an adjustable rate over the time needed to pay it back?

I've ran the numbers and looked at my finances. including the added expenses of owning the property on top of the loan payment. I can afford any of these options. But I'm going to go with 35k down 15yr. It laves me with cash for the remodel and a manageable debt so if I don't flip it and I'm here for another 8yr I could have it paid off by then.

thank you

the value of the home now is around 400k as-is. ARV is 600k range

Okay thank you. If I could ask one more question. The HELOC would be for 150k that's a very realistic number for the amount of work needed.

or

I put 0 down payment and owe 170k in a mortgage.

both loans are in the same interest rate range 2-3%. both would be on the home. so it comes down to what kind of loan I want to pay on. are their any benefits to one loan vs the other.  basically witch loan would you rather owe on?  

thank both of you for your time

thank you for the reply!

the problem I'm foreseeing is getting the HELOC and then the remo. goes over budget for any unknown reason. then I would have to go back to the bank with zero cash in hand and be at their mercy so to say for the funds.

liam    

thank you Mr.Weaver for your reply.

 My future plans are to live in the home for at lest the next 3 years. At that point I my be selling the home and rolling the money to another property. Once I finish this remodel the remaining funds will be going towards an income property. so I fully agree with you on option #1.  Your proposed option 2 would leave most of my cash in my pocket but would also give me the highest payment and this property is an expense. so I don't think I want to have that big of a liability. If I was to rent it to cover the payment that I would agree with this option.    

#3  my dad would get his 170k and have zero ties to the property. The only effect on him would be filing a tax form to avoid any fed gift tax. basicly the bank is willing to finace 100% of the loan because their will be a lot of equity in the property from the start. this would also give me a better tax bias. I'm leaning toward this option but not completely sold

hi, I'm new here and looking for some insight and advise

 I'm looking for some advise on how I should finance the perches of my parents home. here's some back round info. My parents are selling there home and moving away. They know I've been looking to buy in the area so they offered it to me, At a price bellow market valve. According to local real estate agents the home should appraise at almost 400k in it correct condition. My dad wants 170k, I've informed him of the value and that's what he wants. The home is currently livable but will need at lest 100k worth of improvements to bring it back to life. So here's my options as I see them.

1) pay cash for the house. then I would need a loan for the repairs

2) put 20% down on a 15-30 yr mortgage. this should leave me with more then enough to pay cash for the repairs. I can then take the equity out of the home if I so chose latter on

3)Do a gift of equity where I finance 100% of the cost of the home (170k) only coming out of pocket for the closing fees. the bank is willing to do this at the same rate over any term of 15-30 yrs

looking for your advise and the thinking behind it

thank you

liam