All Forum Posts by: David Duong

Thanks Ryan. It's nice to know that at least some small or regional banks will allow 15%. The 5% difference can to slightly improving the property and closing costs.

I'll shop around and keep inquiring. I would imagine the rate is a bit higher if they accept 15% vs. 20%, but I guess that's the price we pay.

Thanks for starting the post. Also, Anthony, thanks for specifically sharing about Texas since I'm from Texas and have relied on a PM; however, thinking of doing it myself and at least I know where to turn to as a starting point (TAA).

Hi -

Has anyone has recent success in purchasing an investment property where you obtain two loans -- one for 80% LTF and the other for 10%, and you put 10% down yourself?

Just wondering if the above scenario is still available to finance properties.

Looking at a 3rd rental and placing 20% down will hurt.

Thanks.

Thanks everyone. This is what I love about BP; everyone gives their honest opinion whether the poster wants to hear it or not. Will pass and look in my backyard (Dallas).

@George, I do like your quote "treat your tenants well. They're buying you a building."

Hi everyone, sorry for my delay in responding.

@Joel, monthly rent is around $1,400. The more I think about it, the more incline to walk away. I'm trying to convince myself that if I purchase the property, I'm gaining instant equity, as well as a possible small net cash flow. I ran the numbers again and it looks like net is around $150 per month. The comps around the area is $130 to $135K, so a part of me says go for it and other part says wait for the next train.

Thanks for the idea of the wrap around loan, but he wants nothing to do with the property or to be part of it any longer.

@Ed, thank you for your opinion. Like you, I also have a spouse and a kid. My full-time keeps me really occupied and so I am concerned about out of city rental property. Your thoughts keep my optimism in check.

@Jeff, it's worth around $130 to $135K in comparable comps. If I purchase at $120K is it worth my time and money. Still stewing the thought of the property.

How best to make this work: Subject 2B; conventional mortgage; owner finance, etc.?

A friend of mine works full-time and has 2 rental properties. He’s almost an absentee landlord; he’s tired of being a landlord and is possibly looking at selling his properties.

He’s offered to sell me one of his properties on what he owes (he’s motivated seller, and he wants out). I reside in Dallas, Texas and the property is in Houston, Texas (a 3 ½ hour drive).

It’s a two story 4 bedroom house built in 2005; neighborhood is o.k. He purchased the property 6 years ago at $150K. He’s offering to sell it to me for what he owes left on his mortgage, which is $120K. He stated that he doesn’t want to bring anything to the closing table.

I can get a conventional loan for it, but I’m a little reluctant to put 20% down. Also, although I’ll hire a property management company to manage the property, I’m a little reluctant since it’s a out of city property. I grew in Houston, so I do know the area. Also, I do trust my friend very much.

How can I make this work without going through conventional? Also, I know a lot of BP members have rental properties out of state and they make it work, but I do have reservations even though a professional management company will be hired. .

Can BP members provide thoughts or suggestions please? Finally, let’s assume if I had to go conventional financing at 5% 30 year term, the cash flow is around net $200 per month.

Thanks!

Hi -

Does anyone have ideas or suggestions? I purchased a rental property and had the whole AC unit replaced (ducts were not replaced, however). All rooms receive cold air except the master bedroom. The master receives little to no air. My AC guy went up to the attic and did a cursory review; he stated that did not see that any of the AC ducts were pinched. I suspect, however, if everyone room is receiving cold air except for the master bedroom, one of the air ducts feeding the mater must be pinched somewhere, blocked, has holes in it, or it became lose from the main duct. I also read on-line that may be the damper is shut somewhere (not sure what that means, however).

I'll call you to discuss, but I'm hoping you know someone that’s good in checking AC ducts that I can call, talk to, and use. Let me know if you think it might be something else. Thanks.

Any help is appreciated. Thanks.

There was a short sell I was looking at in Arlington, Tx. On 12/4/10, listing agent listed the house for 89,000. On 12/9, the original LP dropped to $75,000. Made an offer for $80,000 and LA stated that seller when with another offer. Then on 1/4/11, house was listed again with a LP of $92,000.

Did the asset manager or note investor disagree with the original LP and drop in price, and require the LA to raise the LP to $92,000? Any ideas -- confused... Thanks.

What an awesome post and answers. Thanks everyone! So much easier learing from BP than reading a book!

Carter,

You noted get a loan officer you trust. In your opinion (or anyone else please chime in), do you think loan officers are better to work with than mortgage brokers? Thanks.