All Forum Posts by: Lisa H.

@Stephanie P.

Yes!!!! This is what it feels like. I relate to the pennysaver woman—-and I remember pennysaver!!!! Thanks for responding. I’ll be sure to steer clear away from jerks like the one I was dealing with. 

@Jill F.

Thanks for the advice. Maybe it’s because I’m looking in the 100k price range and they don’t want to loan such little money out. 

@Nick Velez

Yes, he offers these loans. I just think it’s weird his abrupt shift. The first time talking with him he mentioned if I couldn’t get qualified for conventional that there were other paths. So here I am going down these other paths and he’s almost discouraging me because he’s saying I’ll likely never find a deal where the numbers work out. 

I have cash on hand to buy the property outright. But….you know, I don’t want to use MY money. I want to leverage someone else’s. Do you think lenders get upset with this fact at all?!?!? I wouldn’t think so. I just dont know. I’m a newby. 

Has anyone experienced a lender treat you differently after reviewing your financials? I am working with this lender who was so friendly and helpful. I was fist trying to qualify for a conventional but since I can't verify some of my income and my tax returns are a bit of a mess, I'm going down the DSCR loan path. But this lenders attitude shifted. He says I wouldn't have any issues with getting a DSCR loan but "good luck finding any deals that pass the 1%." And he supposedly works with investors.

@Eli Yashar I have reached out to a lender. I’m going to talk with him later today. I’m not sure he knows I want such a small loan amount. The area I’m looking in has many homes under $100k. Does that mean banks don’t give regular home owners loans? 

@Dan H.  why don’t you think they would give me the loan? Too low amount? 

 I think what’s hard is defining my investment criteria.

I am working with a lender. Rates will likely be about 8%. Putting 20% down. 

This might sound foolish but I’m keen on putting this “deal” together for a good learning experience. It’s not a terrible deal.  I wouldn’t be loosing money unless it turns into some crazy lemon house with endless out of the ordinary repairs. 

@Chris Seveney

• The condition is not bad.  Needs cosmetic renovations. Paint, flooring, replace appliances, minor drywall patches, handyman work--and a lot of cleaning. May need a new air conditioner in the future. 

• It's a townhouse so all exterior should be covered by HOA (looking up the CC&R's to confirm).

• I believe it's in a C area.  Is there a map you can get online?  I haven't come across this yet.  I am assuming it's a C area based on the crime map.  Crime map puts it in a C grade BUT it's right on the edge of a A/B area. Its a block from stores/shopping/food. It sits right next to an elementary school. 

• Change for appreciation?  I believe so but not sure entirely.  There is a rental shortage in the area.  Not sure how to find this out. The property has earned $40k in equity in the last 4 years. 

I'm getting my feet wet for the first time in out-of-state investing. I am interested in a property that seems good. I will be buying and holding. If the offer is accepted, I would be purchasing the property for 75% of asking price (value). It passes the 1% rule. Actually it goes to about 1.5%. Cap rate at about 9.5% but the Coc ROI is only 6.39%. I still feel like this is a good deal because I think interest rates are about as high as they will likely go. Of course I could be wrong but I predict in a year or two the rates will have dropped to maybe around 6% and then I could refinance for bigger cash flow. It's also not a huge investment with the purchase price being only 80K. What are your thoughts?