All Forum Posts by: Matt Nico

@Jimmy Lieu

Jimmy, if you need a hand in buying something in Central Fl, feel free to shoot me a message. I have a handful of contacts i can call, and i see a few good MLS homes you could target.

-Matt

@Dave S.

I was told properties need to be 2 years old pulling income before its counted. So you need 2 years taxes for a lot of lenders to negate a rental property. Im still learning this process but it kind of stinks. The banks ive talked to treat assets like cash flowing rentals like liabilities.

-Matt

@Brian Gerlach

I found this to be the opposite. I have 3 cash flowing properties and when i went to get the 4th i was told my DTI is too high. They are saying i need 2 years of rental income history before its counted. This makes it impossible to scale with this particular lender.

-Matt

 Hi Carrie,

Sounds like a cool deal. Is there a specific reason why you would want to flip it? As an alternative scenario you could turn that detached garage into an ADU. I wish we had a lot of properties with detached garages in the Orlando area, but sadly we do not.

-Matt

 Hey Lawrence,

2 things for you really fast:

1. When your negotiating deals, at the end of the negotiation when you feel you have gotten the seller down to the lowest price they will go, ask them to throw in a home warranty. Its usually like $700 in my area, and it protects you for the first year from any major things like the fridge, pool pump, or air conditioner breaking.

2. Strongly suggest at first you learn how to do things yourself. It saves money (which isn't the point but is still nice), but you also learn to see from a contractors perspective. At least do small tasks like paint. I learned a lot from a youtube channel. look up "Home Renovision DIY". You will find a middle aged canadian guy who is a great teacher.

Hope this helps,

-Matt

I have been looking for a Real estate meetup as well Jorge. I would want to attend, but am probably a few hours from you. I live right near Disney World. 

-Matt

Hey Saul,

If the interest rate is that high and it is an FHA, I would look to refinance immediately. Refi into a conventional loan. This will remove the PMI, Private mortgage insurance. This should lower the monthly payments by $120 or so I would guess. Then you can get a better interest rate. I got a 3.625% a few weeks ago on a refi. That should lower the payment another $125 or so.

If your family wants a cash out refi, then they can borrow up to 80% of what the home is worth. This creates a new 1st mortgage and will increase your payment amount every month. If you want to pull it out using a HELOC, then it creates a 2nd mortgage for up to the $104,000 I showed below. This had to be paid back a bit quicker though.

380,000 x .8 = 304,000.       304,000 - 200,000 = $104,000.

So you can pull out $104,000

Hope this helps,

-Matt

Jean,

Could I have your mortgage contact info? I am located in Orlando FL and can always use a good mortgage professional that is investor friendly.

Thanks,

Matt

David,

I am a landlord, and I actually have nest thermostats in all of my properties, and I have access to them.

My properties are house hacks, so I set the temperature that the tenants want it at. An added bonus of the nest is that it senses when your AC unit is not working properly or when the filter needs to be changed. I'm not sure why your landlord would want this information if you are responsible for utilities though. I would just be up front with him and ask.

-Matt

 Hey John,

There has been a huge drop off in the Tourism area in Orlando, but that doesn't mean that people are moving out of the state, and its pretty obvious its temporary. I don't airBNB any of my rentals so I don't have any tenants that are tourists anyway. For m personally, I have not really been affected. And this whole black swan COVID thing will pass, and things should start getting back to normal by August or so.

I do property management as well, and what I can tell you is that I have lowered all of my tenants rents slightly while this whole COVID thing has happened. I did it to try to help my tenants out a bit, and they were very happy that I even cared about them at all.

Lenders are a bit more difficult in todays market, but I am talking to a handful of local ones in the Central Florida area who seem very confident good loan programs with good loan terms will be coming back soon. The conversations I had were from a week and a half ago also, so its possible they already are.

Happy Housing,

-Matt