All Forum Posts by: Matt Devincenzo

As far as I know pets aren't a protected class so I see no reason why you can't tell them that is why you're terminating. I also see no reason you have to tell them you're terminating, so I say go ahead and do it whichever way makes you most comfortable.

I don't know that there will be too much weirdness, I'd understand if my LL told me I needed to go by some date and appreciate the extra time. Then again I'm not a typical tenant I guess since I also own rental property, so maybe other LLs here can give some advice.

Tim as a vet I've looked into the VA loans also, one thing to make sure is that you can keep it in place after PCS. I know when I was looking if you converted to a rental you had to pay off the VA with a refi, unless you could show certain hardships. I have heard that recently the criteria has relaxed and you can do more like you would with any other owner occupied loan where as long as you live there the minimum time, it's no problem to move Jason Minnich can probably help with that more.

In regards to your question about the 50%. The 50% rule "of thumb" doesn't directly have to do with cash flow it has to do with expenses(which indirectly do affect cash flow).

It says that historically it has been found that throughout the life of the property you WILL spend approximately 50% of the rent on expenses. Everything from property taxes to insurance to legal fees to repairs and vacancy are lumped into that 50% number.

Now that means that what is left is available for your PI payment and cashflow. So if you are absolutely ok with 0 cashflow then as long as your mortgage (principal and interest portion) is less than half the total rent amount you'll be ok.

Real quick math for me shows that you're right at about 0 cashflow with your PP and rent amount shown, so based on your stated goal looks like you might be just fine.

Savannah Leigh I think J Scott is looking at this from another angle, and it's something I've done myself.

I have a GC that will pull all my permits for about $500, I also have a handyman that does good work, and actually was recommended by the GC when I was in a rehab bind. So my handyman does all the repairs for MUCH less than the GC would charge for the job.

So now I can always get my work permitted and completed legally for much less than a GC would charge to do the whole project himself.

So I think what J was suggesting is find a GC to pull a permit for you, then you can use your guys because "the GC" is hiring subs. If anyone asks tell them you burned out doing it yourself so you got a GC in there to get it done. All true statements, just you happen to be coordinating everything.

Sorry I just realized we kind of hijacked your thread @joel owens

Do you know that the seller has a mortgage currently? I've sold 2 properties on OF that I bought cash, so no underlying mortgage to worry about for my buyers.

If he does then you are looking at a specific type of OF called "subject to" or "sub2", search both of those terms up in the top right to learn about it.

The biggest concern there is the possibility of the bank "calling the note" which means they've decided to accelerate the loan and you now have to pay the full amount off or they foreclose.

The other concern is the seller not making the bank payment and letting the property foreclose while taking your money. The easiest solution for that is to have the notd serviced by a third party. You would pay the servicer they would send the mortgage payment to the bank and the seller's portion to him. Keeps everybody honest and prevents people from getting sticky fingers.

Jordan there are a lot of different ways to structure owner financing, so you really won't be able to get better answers until you(and we) know more.

The terms will be up to the person giving the financing, and what they're looking to get out of the deal. That being said the purchase price, down payment, term, interest, balloon (if there is one) and prepayment are all up for negotiation.

You won't own the note, the seller of the property will. He will essentially will be trading the property to you in exchange for holding a loan (note) that you are required to pay. If you stop then he would foreclose and take back the property just like any other lender would.

If you were to purchase the note from the owner you would now own the debt that you owe on your property...It would be like buying the mortgage to your house from the bank...I'm a little confused as to what you want to do there

I doubt any insurance company would cover it. The reason being it is considered normal wear and tear, not damage covered by insurance.

If for some reason you could put a claim in for it, they may also depreciate the claim value by the remaining service life. So if your roof should last 20 years and you're at year 15 they will probably only give you 25% of the cost.

And remember a claim will still have your deductible to pay, and will likely raise your rates so the benefit quickly is gone.

Haha, see I love the labor part. If I could get paid what I make now to dig ditches or throw on a roof outside all day I'd be perfectly happy to do it.

Congrats Ryan Becerra!!

You better copyright that "Human Equity" line, cuz Bill Gulley is retired now and it sounds like you might have given him a "guru" idea to market when he's not fishing haha.

Congrats Page Huyette, especially on getting the Mr. on board!! That in itself is priceless, that's a great start to a team, knowing exactly what your rehab numbers are and not wondering if your contractor will blow your rehab budget later.

As a cash flow investment I'd definitely say it's a no-go.

You would be looking at a purely appreciation play, I personally don't have an issue with that it's not my cup of tea though. I would prefer to sell and use the equity to invest in a true cash flowing rental.

Look around here at the 50% "rule of thumb" if you do decide to ren. Understand that you will be putting money into that property while you rent it, and that you will be in a negative position as far as DTI goes when you try to qualify for any additional loans.