All Forum Posts by: Marty Gold
Marty Gold has started 17 posts and replied 59 times.
Post: What, other than Comps, is used to price a home?
- Carlisle, PA
- Posts 59
- Votes 1
A propery in Lancaster county PA is listed for $184,999 and is being rented through June 2018. This home was purchased as a rental in 2005 for $126,500.
Other than finding comps (i cannot find 3 within a mile that have the same bed/bath components with similar square feet), what other factors are used to learn the fair price and thus make a fair offer? Seeing as how the national home market isn't much higher today than it was in the summer of 2005, and that the last owner hasn't made any significant upgrades or improvements, I was shocked to see the 50% jump in price. I'm new so maybe I'm not looking at this correctly, but isn't it odd to think the market is 50% higher today than a year before the peak of the bubble?
Would anyone use this info as a factor in making an offer or am i best to ignore it and only look for comps?
Any info on doing research to make a fair assessment and thus make a fair offer would be greatly appreciated
Post: PA Law Question - Security Deposit
- Carlisle, PA
- Posts 59
- Votes 1
thank you very much.
You were extremely helpful!!
Post: Is it worth shopping for rates?
- Carlisle, PA
- Posts 59
- Votes 1
Originally posted by @Andrew Johnson:
@Marty Gold I always shop for rates between banks. When it comes to residential I've found pretty much everyone is within 1/8th - 1/4 point. There's also nit-picky details around when you specifically lock that can also make a tiny difference. None of this really amounts to much of a change in your monthly payment but I'd definitely try and find what seems to be the best rate + term combination for you. You can ask about things like origination costs, appraisal costs, etc. but it's all pretty close across the board. My basic guidance would be to ask a few banks. It can't hurt. Just know that the rate is only part of the equation, just because a rate is 1/8th of a point cheaper doesn't mean the loan itself is cheaper.
Thank you. Other than shopping rates, do you suggest any other items I should shop for or price our at each bank - things that may not be fixed such as closing costs?
Thanks
Post: Is it worth shopping for rates?
- Carlisle, PA
- Posts 59
- Votes 1
Originally posted by @Tony Nguyen:
@Marty Gold Check out my answer to this persons post it'll shed light on how you can creatively get into your first investment property as a first-time homebuyer. Hope this helps.
https://www.biggerpockets.com/forums/49/topics/430704-2-4-unit-mortgage-loan
Thank you
Post: Any advice for a deal which fails the 2% rule?
- Carlisle, PA
- Posts 59
- Votes 1
Originally posted by @Joe Villeneuve:
Originally posted by @Marty Gold:
How can I know some numbers though? Not all costs are fixed and thus, must I not take an educated guess or approximate some costs?
If you can direct me as to how I can get you more solid numbers, I will do that and edit my OP. This is my first rental purchase and I'm not familiar with all the specific details yet.
Thank you
Most of what you are looking for can be found in the sellers records. Get them from the seller.
ARV = Sold Comps in the immediate area, same size property.
Must these comps be rentals?
Thank you
Post: Any advice for a deal which fails the 2% rule?
- Carlisle, PA
- Posts 59
- Votes 1
How can I know some numbers though? Not all costs are fixed and thus, must I not take an educated guess or approximate some costs?
If you can direct me as to how I can get you more solid numbers, I will do that and edit my OP. This is my first rental purchase and I'm not familiar with all the specific details yet.
Thank you
Post: PA Law Question - Security Deposit
- Carlisle, PA
- Posts 59
- Votes 1
The PA law reads, "
"Escrow Funds Limited:
(a) No landlord may require a sum in excess of two months' rent to be deposited in escrow for the payment of damages to the leasehold premises and/or default in rent thereof during the first year of any lease.
(b) During the second and subsequent years of the lease or during any renewal of the original lease the amount required to be deposited may not exceed one month's rent."
Can anyone explain (b) to be please? If someone rents using a 1 year lease and I charge a 2 month security deposit, is (b) saying I must return 1 month (half in this case) if that same person renews the lease for a second year? Or is (b) saying on that renewal lease that I may charge an additional security deposit of 1 month's rent, above the 2 month's deposit which I already am holding?
Thank you
Post: Any advice for a deal which fails the 2% rule?
- Carlisle, PA
- Posts 59
- Votes 1
Post: Any advice for a deal which fails the 2% rule?
- Carlisle, PA
- Posts 59
- Votes 1
Originally posted by @Joe Villeneuve:
2% and 1% are numbers that are best used to describe milk...not real estate. Don't tell me they are rules of thumb. It takes less time to actually analyze a deal/market with actual numbers than "guesses". Using these % (any analytical %'s actually) assume all properties are equal...which they are not.
Using these "shortcuts", and rationalizing their use as being "rules of thumb", is just being lazy.
Thanks joe.
Would you mind looking at my numbers above and offer your opinion on the math?
Thank you
Post: What do you do with CapEx money?
- Carlisle, PA
- Posts 59
- Votes 1
I am searching for my first rental and know it's important to save CapEx money each month for big problems that eventually arise.
But what do people do with this money? Stock market is likely too risky and bonds aren't liquid enough. Do you just leave it in a savings account earning next to nothing for years or maybe decades until one day you need a new roof?
Thanks