All Forum Posts by: Maggie Gasner

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Don't assume the lenders are looking into FHA for you. Do your due diligence and don't give up. https://apply.fha.com/myhomefha/?PPCID=106&CID=&gclid=CNamvPnk9sUCFYgAaQod5SMAVg

Have you tried credit unions? Do you have the down payment (20%)? What about a FHA loan since you are occupying half?

@Chris Heeren.  I am interested- just sent you an e-mail!

Thanks for the feedback! The P&I is assuming 30 year fixed at 5% and I also factored in part of the down payment that we are utilizing a HELOC for. Both sides are in fact occupied by owner- from what my agent tells me, it's a parent/child situation and no (or minimum) rent is charged.

Asking price of remodeled duplex: $159,900.  I'm assuming we can get the property for around $150,000 (been on the market over a month).   It is a 2 bed/2 bath unit (x2) on quiet dead-end street with attached garage on each side and large lawn.  Can I get some input on our numbers?

P&I = $814/month

Taxes = $280/month

Insurance = $100/month

Total expenses = $1,194/month

Projected rental income of $800 per unit = $1,600 total per month (all utilities paid by tenants)

Projected profit of $406 per month (minus any repairs).  We will be managing this duplex ourselves to save that expense and gain some experience.  Even with $200 per month in maintenance (which I doubt, it has been completely renovated), we're over the $100 per door threshold.  

Issue I'm having is that it is currently owner-occupied so no rental history.  We have excellent credit and down payment but it's obviously a risk buying without current tenants and I am wondering if we'll run into trouble with getting the loan because of this.

Thoughts? 

Jeff, we are definitely not looking to buy in Evansville...for that very reason! :) And you're exactly right- most of Madison's suburbs are bedroom communities.

The duplex we are looking at is listed for $159K.  2 bed/2 bath each side with large yard and attached garage.  Newly renovated.  Our break even looks to be about $1100-1200/month.  We're expecting to rent for around $800/month each unit.  

The older multi units that I was referring to were in Janesville and quite a bit cheaper ($110-120k). However, it has been determined that we'd prefer to stay out of that neighborhood and stay away from super old homes, especially for our first.

This is so helpful, I appreciate it all very much.  

If I look on Craigslist and can literally find only ONE rental available in the city we are looking, is that a good thing or a bad thing?  I take it as there is a high demand but maybe I'm wrong.  It's a relatively small town but I know there are people looking to rent everywhere.  Where can I find info on rental prices if there aren't any listed for rent?  

Thanks a lot!  So you wouldn't be scared away from the fact that the newer option isn't currently rented? I think it's a great place that could be easily rented out.  My husband is more risk adverse and worries that we need to find 2 new tenants right away and don't have rental history for the property.