All Forum Posts by: Account Closed

Any idea how Union will handle retro permits? 

Here's the scoop: Current owners have been there for decades. 

House is listed w/ 2 baths. 

While under contract OPRA request comes back and doesn't show permits for 1 bath.

Owners claim it was purchased with the bath. 

Since it was so long ago, I cannot find original purchase information. 

Called Assessor asking a "general question" about rooms, and was told the home is listed as 1 bath.

Is it reasonable to ask for a permit for this bath? 

When is something like this considered grandfathered in?  

What penalties or issues do I face if we proceed?

How is Union township building dept in dealing with this type of problem? 

Thanks!

Hello Bigger pockets, 

I'm trying to strategize on how to save for a house and understand my options. However, I'm 4 months away, and every lender I try wants me to run a full application.  I'm wondering if anyone out here can provide some basic guidance in this scenario? 

Stats: Credit Score 830. I own 2 other rental properties, one paid in full, the other with a small cash-out refi attached to it.  My job offers 401k loans for personal home.

Say the house cost $400,000 with taxes around 10,000.

I currently have 35K saved for a down payment, with 4 months left to save further. I can get it to 43K by then.

Several years ago, I borrowed 401K loan for one of my rental properties roof…about $6000 at 4.75%. The cost is 210/mo.

I have the opportunity to pay this loan, and borrow 20,000 for 15 years at 6.5%.The cost is 175/mo.  This easily gets my downpayment to 45K.

Im trying to figure out what is the best option for us:

20K down (5%) + PMI

VS

40K down (9%) by borrowing 20K 401K loan.

VS

40k Cash-Out-Refinance on my rental property. 

Im not fully understanding the pros and cons of each. 

For example, the Cash-Out loan is tax deductible, but comes with larger closing costs. 

The risk is that the properties do not appreciate much and are low cost. I dont know if I want to be in that area for the long haul. 

The 401K loan locks me into the company for 15 years, and needs to be paid if I move. Im not worried about the retirement fund related risks.

Or, I can simply pay the 6k loan, and pay 5% down and the bigger PMI.

Anyone care to help provide numbers, or guidance on this one?

Thanks

*Note, I'm going to assume Cash-Out-Refi rates are now 5.6% or so?

Looking for some advice folks! In short: When is it best to pay a PMI vs taking out a cash-out-refi to meet the 20% downpayment requirement?

--

Renting such an apt/home would be over $3000/mo in our high colo area. 

I'm trying to see if I can squeeze purchasing a home in this time frame. It's going to be unlikely that i'll come up with a full 20% downpayment, but I have about 45,000 saved for down payment.

I have two rental properties, one of which is clear and free of any mortgage.

The first property had a cash-out-refi mortgage for $45,000.

Closing costs were $6223.90. Which resulted in cash to close of $38,776.

The APR was 4.625. Monthly payment $231.36.

Zillow tells me that my PMI would be $237 if I put 5% down on this home (just an example).

https://www.redfin.com/NJ/Bloomfield/34-N-End-Ter-...

20% is $79,800 down payment

5% is $20,000 down payment

Now, I'm trying to understand the pro's and cons of each approach. My initial thoughts:

Pro's for PMI: Allows rental properties to continue to cash-flow. Avoids closing costs, and ongoing interestm for a re-fi.

Pro's for Cash-Out-Refi: Tax deductible mortgage interest. Tenant essentially pays for the mortage.

Con's for Cash-Out-Refi: $6000 closing costs, reduced cash-flow

Con's for PMI: Stuck for the life of the property. Not tax deductible.

If I do decide on the refinance, is it possible for the same lender to do both, and simply roll the cash over to the new property?

Another option is to go for a 2-3 family, but those seem to cost 500-700. However, in this setup, I would be paying my "share" of rent, while hoping for longer-term appreciation. It wont cashflow. However, It would give me 3-4 rental units as a whole. 

Any guidance would be appreciated! 

Our section 8 tenant had a death in the family, and unable to pay this month's tenant portion. As a new investor, I wanted to begin prepping for what to expect going forward. We did issue a letter (reminder) of payment, but nothing else since. I've heard that the tenant can get assistance from HUD to pay their portion but not sure if this is true. Does anyone have general advice here?

@Steve K. That is my next move :) Although im living in NYC temporarily and duplexes are super pricey. We will see! 

Hi guys,

I started my real estate journey by saving a few hundred bucks per month and eventually buying a fixer upper for 18K. This house was rehabbed, rented, then a mortgage taken. Through the use of credit cards and personal loans and retirement funds I was able to do the same again for a second property. Both are now rented and cashflowing. Then I took a reverse mortgage on the first house to pay off debts for the second. Both properties are under my own name with umbrella insurance coverage. I’m now looking to save for the 3rd and eventually cash out refinance the 2nd property to buy the 4th. As the business grows im in search for advice .

This year I plan to own 4 properties in total. Currently I’m a sole prop (because personal CC’s and loans were used, along with personal mortgages). The rates are lower, and just starting off, it’s all I can come up with.

I plan on buying Property 3, and 4 this year through the use of a second mortgage (property 2), and a traditional mortgage for #3.

Generally speaking, what strategy should I take from here in terms of business structure, etc? Id like to ensure that these assets go to a family member should I pass and continue getting income. Obviously, its an answer for a lawyer, but when I approached one 2 years ago, he told me to focus on buying properties then come back once I have some.

Some have suggested getting a LLC and moving the properties to it, however, im worried about the mortgages getting affected some how. If I buy the house under the LLC, the "business"loan rates wont allow me to cash flow.

Looking for general advice, etc.

Note, I have no other assets as I’m a renter myself. All other assets have payable on death clauses. Eventually ill buy a house for myself (in 2018).

Thanks!

Hi guys,

I started my real estate journey by saving a few hundred bucks per month and eventually buying a fixer upper for 18K.  This house was rehabbed, rented, then a mortgage taken. Through the use of credit cards and personal loans and retirement funds I was able to do the same again for a second property. Both are now rented and cashflowing.  Then I took a reverse mortgage on the first house to pay off debts for the second. Both properties are under my own name with umbrella insurance coverage. I’m now looking to save for the 3rd and eventually cash out refinance the 2nd property to buy the 4th. As the business grows im in search for advice .

This year I plan to own 4 properties in total. Currently I’m a sole prop (because personal CC’s and loans were used, along with personal mortgages). The rates are lower, and just starting off, it’s all I can come up with.

I plan on buying Property 3, and 4 this year through the use of a second mortgage (property 2), and a traditional mortgage for #3.

Generally speaking, what strategy should I take from here in terms of business structure, etc? Id like to ensure that these assets go to a family member should I pass and continue getting income. Obviously, its an answer for a lawyer, but when I approached one 2 years ago, he told me to focus on buying properties then come back once I have some.

Some have suggested getting a LLC and moving the properties to it, however, im worried about the mortgages getting affected some how. If I buy the house under the LLC, the "business"loan rates wont allow me to cash flow.

Looking for general advice, etc.

Note, I have no other assets as I’m a renter myself. All other assets have payable on death clauses. Eventually ill buy a house for myself (in 2018).

Thanks! 

Thanks! Ive got the answer 

closing out!