All Forum Posts by: Logan Garnett

This is my first time getting a property under contract and it looks like I will have to walk away from the property. I wanted to see if I am making the right decision.

The address is 8926 Aber Trail Ct in Houston Texas, it is a 3 bed 2 bath, 1716 sqft., and we got it under contract at 278,000. In the excel file attached I show my estimated rehab costs and holding costs. It would be a live in flip and I would self perform everything except for the countertops over a year. Once under contract the inspection was performed. The inspection found the foundation was settling on the front side of the house, the HVAC is 13 years old, and the roof would likely need to be replaced in 2-5 years. We received a quote of 6,900 to repair the foundation, the average HVAC replacement costs 9,000, and received roof estimates around 12,000. These three items would be performed by a contractor. The seller is only willing to lower the purchase price an additional 10,000 and offer 550 to put towards a home warranty. To me the ARV that my agent is told me seems a bit high also. I'm looking forward to your feedback.

Thanks,
Logan

Yeah, I bank with Bank of America so that quote was from them. Yesterday Guild Mortgage quoted me 2.6% interest on an FHA loan with 3.5% down.

This bank also suggested using a conventional loan program they were offering which required only 3% down at a 2.2% interest rate. I wasn't aware of conventional loans going below 5% down. Because of this I've mostly looked into FHA loans. This sounds like an offer that's too good to be true. Could there be anything I'm missing?

Anybody have some insight on current 30 year FHA interest rates? My credit is in the 770's and I was quoted 3.5%. I had heard they were below 3% right now but wanted to get other people's opinion.