All Forum Posts by: Lynne Smith

@James Mercure did you end up getting any properties at auction?

Okay thanks i will have to find out. The property just hit the MLS 2 days ago. I'm a little baffled why it is priced so low compared to the comps..I was hoping it is because you can't view the inside but I guess it could be the tenants are difficult.

@Frank Patalano

Would love your feedback on this house I'm interested in. Have never owned investment property before. I live in a big development and there is a townhouse around the corner I am interested in. It's a bank owned foreclosure and already tenant occupied. The strange thing is the listing says no interior access is allowed. If the bank owns it, why can't I see the property? The list price is excellent, well below comps. I'd wonder if it was in horrible condition, but the place is good enough that it's livible and the tenant is paying 1775 per month, which is right on par with similar townhouses. Without access I am guessing I have to pay cash. I have the savings to do it and then could do delayed financing I guess. But why can't I see the property if the bank owns it?

Property is an attached SFD (townhouse/pud)

List price 138,000

Condition = unknown, currently occupied by tenant, no access allowed

Gross rent is 1775 per month

I'm guessing (?) it will be a cash only deal since there is no access to the property. Wouldn't be able to get an appraisal. I think once I close I could do delayed financing.

Neighborhood is B/B+

Other homes similar square footage and bedroom and bathroom count have sold for 185k and 193k in the past year. Both in good condition with the 193k being updated and in excellent condition

agree. I'm an underwriter. Last bank I worked for only charges $99 at closing and that's assuming you get to closing. If someone was declined or withdrew we didn't charge a penny, even if we already paid for their appraisal and credit report and flood search etc. One caveat - since a heloc has a variable rate, your qualifying payment will be determined with the current rate PLUS a few points of cushion which will inflate your DTI. This makes sense since the lender needs to understand if you can afford obligations should the rate go up. Depending on your income this might be fine. Heloc provides flexibility, take the money when you need it. Alternatively, you can also get a FIXED he loan. In that case, we use the current rate to determine your DTI since the rate won't change. The downside is that you will get a check for the full amount financed and will start being charged interest right away. Long story short, heloc is better for "I'll need money but I'm not sure when". But the heloc will give you a higher DTI.

Ooh really? I'm looking to buy my first rental property and looking for a turnkey. Is there a turnkey company you recommend in that area?