All Forum Posts by: Louise A.

@Lou Ruggieri

As Jared mentioned, once you're borrowing on a 5+ unit property, you're into commercial financing and you get no benefit from living in it.  In Indy our property taxes on commercial property are 2% of value and 1% of value if you're living in it.  Check the rules in your area.  

Commercial loans are much worse than residential loans.  Standard terms on smaller deals are 5 year fixed rate, and a 20 year amortization.  Residential loans are fixed and at a 30 year am.  

I like your thinking though.  I moved to larger multi family for exactly the same reason you're considering it.  Just make sure to take into account the loan terms on larger properties.  

@Nate Hammond

Sorry for the delayed response - just saw your question about why I stay out of the dark green.  The dark green areas on that Trulia heat map contain areas of town that only investors with a lot of knowledge about running properties in D areas should buy in.  In Indy many of those areas have vacant houses next to properties you might be considering.  I wouldn't live beside a boarded up house, and the people I want to rent to don't want to either.  There are some good streets in dark green areas too, but as a starting point, its safer to stay out of them.   

@Mark M.

Hey Mark - can you add me to your list as well?  Not clear whether the meeting is at 6:30 or 6 on March 1?  

@Joseph Leonard

Hey!  Unless the rules have changed again, you can have up to 10 mortgages, not 4.  There are cash reserve requirements on mortgages 5-10.  Also, if you're married, you can have 10 in your name and 10 in your wife's name.  I'll PM you my lender and you can find out the requirements from him.  

@Chris Lombardi

Hey!  I don't have an experience in NJ, but am hacking in Indianapolis.  I think both of your ideas are viable - both buying in a better area (more expensive house/more equity) and paying rent to live in your property, or buying in a lower cost area and having better cash flow.  In these types of questions, there isn't a right and wrong answer, its really personal preference.  I lean towards spending more for better areas, but that does affect your potential cash flow.  Don't be discouraged by the lack of good deals.  Our markets are super hot at the moment and its hard for everyone to find property.  Be persistent! 

@Nate Hammond

Hey all - try this link:

https://www.trulia.com/local/irvington-indianapoli...

For out of towners, I'd recommend staying out of the dark green areas.  

@Josh Schneider

Hey!  Have you run the numbers on your current property to make sure that it will break even or even make you money?  In IN, property taxes are 2% of value when you aren't living in the property.  For one house, you might be able to manage yourself from Indy.  That decision might depend on how much money you're making on the property. 

I'm a musician here in Indy.  Hope to meet you sometime....

@Nir Levy

Hey!  Welcome to BP!  It would be great to see you at our local RE meetups if you can make it.  INREIA, CIREIA and the Alpine meetups are my personal favorites!  

@Account Closed

It would be great if you could house hack that 4 unit!  Sounds perfect.

Start calling lenders.  You need to find a lender who is investor friendly and has guidelines that will allow you to do what you want to do.  You will be surprised by the variety of answers you get to the same questions put to different lenders.  

For example, when I was first buying, every lender I spoke to told me that rents needed to be on my tax returns for at least a year before they could offset my debt and improve my debt to income ratio.  I just kept calling until I found somebody who would use the current leases to improve my income BEFORE those rents hit my tax returns.  Don't give up!  Dial until you get the answer you want....  

@Joseph Calvano

Don't be tempted by condos! My main beef is that you don't control the property. The HOA board does. I don't think anyone in the thread mentioned the rental cap? Is there one? If there isn't the board can institute one anytime and you could lose your right to rent. The board can choose to special assess at any time and raise HOA dues at any time. My first property was a condo and I sat on the board and we voted to put a $120K roof on the property. 19 units. That's a bill. And I could rent it, so I sold for a loss. I may be biased!