All Forum Posts by: Linda Osborn

Just to make sure....if you are "getting a good deal", are you saying you are buying the building for less than it would appraise for now? You don't necessarily have to pay 20% down to not pay PMI; if (amount financed/appraised value) is <80% you don't have to pay PMI. So if purchase price is $85k, and it appraises at $100k, you just have to put $5k down and you still won't have to pay PMI.

Deleting this post as it is a repeat of the ones before and after (for some reason, my previous edits did not take?!)

Thanks Howard. That's exactly where I was going. If the home will be owner occupied, you may be able to get an FHA 203 (k) loan, which be a FHA Rehab loan. In the interest of full disclosure, I have never used one, but I do know there are mortgage companies in Austin that will not only loan on these properties, but will do the rehab for you. That way they protect their interest (the property), and you can focus on getting a good price on an "as is" property.

Your description of what the seller will and will not do is disturbing. Fixing or replacing screens should be relatively easy; there are many places that make them custom at a reasonable price. Are you comfortable that the mold is localized to that area only? Agreed, if they have to rip out sub-floor and remove/treat mold, they should replace the whole floor. I agree with Justin, but it sounds like you are concerned the property with not appraise without the repairs. Is that the case? Are you planning on living in one of the units or would it be non owner occupied?

Hi Ryan,

Welcome to BP! This is a great place to learn about investing and get your questions answered!

I agree with most of being said, and Austin IS a tough market overall. But there ARE areas in Austin where you can still find good deals if you look in the right places. We've found some good deals in both older neighborhoods and newer ones. For example, there has been quite a bit of  new home building in Austin...to the point where many builders were/are having trouble selling their homes. My broker (who is a great outside the box thinker herself) created her own great deals and bought 2 brand new north Austin buy & hold  SF investment homes last December. In addition, even as Austin grows, some of the outlying neighborhoods still have great deals while benefiting from the high rents and high demand in Austin proper.