All Forum Posts by: Matthew McMenamin

@Nicholas Earls @Dan Maciejewski I'm throwing in a sub-question here because I am in a similar situation. Would lenders look at Nicholas' situation differently if he purchased a property outright in cash, and then went to put debt on it? It seems like a much different conversation if you approach a lender asking for a 70% LTV loan on an asset you already own and you're willing to put up 6 months debt service reserves.

Thanks for the responses guys. I think it should be no problem at all. @Josh C. I would be curious to see the Pike listing. Mine is totally off-market, but probably pretty similar to the Pike one. It's in the neighborhood immediately to the west of Eagle Creek Golf Club, so right on the border but not in Pike. 

@Warren Swede Yes, it's a stormwater/ man made retention pond. It's a part of the subdivision. It's large and not a part of the property I am looking at. The backyard backs up to it. Sort of halfway between a pond and a lake... If I want to do anything about it, a fence would probably be the way to go. Maybe it's a non-factor and I don't need to worry about it.

@Bjorn Ahlblad It's an off market deal that I may be able to get under market value, so the rent numbers would make sense. I am also looking at it as a potential flip, which I am leaning more towards. It seems kind of high-end for a rental property, however large suburban rentals are popular these days. 

Is the liability of "waterfront" property worth it for long-term SF rentals? I'm looking at a house in Indianapolis that has one of those suburban-type ponds in the backyard, so we're not talking about swimmable lakefront property. I would imagine some renters with kids would not want to rent somewhere that has an open body of water where their kids might get injured/drown. It provides a nice view off the back porch, but I'm wondering if I should just steer clear of the risk. 

I'm hoping to start a discussion on the best methods to approach San Diego foreclosures and/or pre-forclosures. I think there could be great opportunity in approaching distressed/motivated sellers who want to get out of their condos. This substantially limits risk as there is probably nothing wrong "inside the walls." Any renovations will probably be limited strictly to cosmetic refreshes. 

So, how do I find these properties? I found Propstream to be somewhat inaccurate in other markets. Should I go straight to the county assessor? Approach owners directly who have substantial tax liens on their property?

Wow, I totally missed that this loan program puts up 97% of the money for renovation. I assumed @Drew Stroud was coming out of pocket $60,000 for renovation. This is pretty great.

Interesting. I'm assuming, based on the loan program name, the property needs to be in disrepair. They want buyers putting money towards fixing properties up.

I'm by no means an expert or a flipper, but one problem I see is that your ARV is roughly equal to what you will spend. As a hypothetical example, its ideal when you spend 100k all in, and then refi with your new ARV equal to 135k. You would have earned 35k. Having said that, if you're just living there and your tenant is taking out a big chunk of your monthly expenses/mortgage, the deal doesn't have to be perfect. Its a good neighborhood that will probably appreciate long term. I'm interested to see what some of the more experienced BP members have to say.

Hey Drew, is the loan dependent on you living there? Just curious, never heard of that lending program. Do you plan to refi once this whole thing stabilizes?

Thanks @Krystal Maldonado and @Floyd Fajardo. 

My current bid from Cornerstone Home Inspection is $390 for a duplex. $50 extra for termite inspection. $125 extra for radon inspection. 

They say their inspectors have construction backgrounds and follow ASCE protocol. They do around 500 inspections a month. So I guess the quality is there, but price is a bit hefty. I feel like termite inspection should just be a part of a regular inspection.

Does anyone have a recommendation for a great inspector? Someone with a construction background is always a plus.