All Forum Posts by: Matthew Leal

@Dustin Allen forgot to tag you on my first response 

No utilities on the property currently, I would have to bring in electric from the road. I highly doubt there is sewer, water or gas. I am assuming it would have to be wells and septics. 

So I have the opportunity to purchase 140 acres of land in Brandon, VT from my uncle, 30 minutes from Killington Mountain Ski Resort. I like the idea of possibly subdividing the land into separate lots and sell them off to make a return on my investment. Would contacting the building department and discussing this idea with them be the first course of action? What other due diligence should I be doing to make sure this deal makes sense?

@Christian Decker I am curious, are you finding it difficult to re-lease these spaces? 

I think your biggest risk is being able to pay the terms of the loan until you can refinance back into a traditional mortgage. Like Sarah mentioned you need to calculate these costs into the deal. I think the bigger concerns would be making sure my rehab budget and timeline are sound. Underestimating theses can spell disaster as they are going to affect your carrying costs. Always build in contingencies when rehabbing because we all know construction takes longer and costs more than you originally think.

@sam 

@Sam Malhi so I just went through the cash our refi process myself on my primary residence but I do not own it outright. Most lenders will lend 75%-80% of the homes ARV. So I would borrow whatever you can afford to make payments on and you can use the funds as you see fit, the lender will ask you what you are using the funds for as well.

That being said when you are doing this just make sure that your mortgage payment from the refi and the mortgage payment on the new property do not put you over the DTI ratio that banks will lend to just because it might be hard to get a mortgage on the next property. Having a rental agreement in place on you primary usually is helpful to have so the bank sees that you will have income coming in and you are not paying two mortgages outright and they will factor that in when you are going for your 2nd loan.

@Paul Defngin Credit score is decent, I believe it is around 740

@Elise Marquette posted the breakdown of closing costs

@Eric Johnson 27 year because I thought it made sense to stick with the same years on my loan instead of going "backward".