All Forum Posts by: Matt Romano

I did shop around.  Probably not as much as I would have liked.  However, I am comfortable with my current financing, and am looking forward to exploring more options on my next purchase.  My current lending seems about typical / not far off.  There will ALWAYS be a "better rate" out there somewhere, I get it,  Thanks for all the replies though!

Thank you @Russell Brazil for the response.  So basically the appraised amount doesn't necessarily even reflect the TRUE value of the home, but more so that its at least worth what the bank is lending me / what I'm paying for it.  aka: The property was listed for $240k, I have it under contract right now for $252k, and it appraised for $253k.  

Have a 2-family under contract that is scheduled to close next week! Super excited to get started as this is my first purchase, and by no means anything close to my last. I will be house hacking my way towards financial freedom! :) Anyway, I got the property appraised about a week ago (with the results this past week).  And, the appraisal came back "perfect", according to both my agent and lender.  I didn't know what to expect as far as the $ and the anticipation was killing me, especially because I had to outbid by $12k over asking price to lock this one in.  I was pleased to see how detailed and in depth the appraiser went to determine the value they come up with.  But I just found it ironic that the property appraised for exactly $1,000 more than what I have it under contract for. I asked both my agent (very professional, and investor herself), and the lender (also very investor friendly) why this was, and they both said that it's because it means that it is at LEAST worth the amount I'll be borrowing / amount I have it under contract for. Apparently I wouldn't know if it was even worth significantly more than what I'm paying. Maybe this varies between who you finance with and who they send out>? But I would love to hear your thoughts about this! Thanks in advance

-Matt

That is interesting Michael Lucero I'm wondering if that has to do partly with the fact that it is a condo, so HOA is responsible for the entire exterior and their own insurance on the buildings? Thus making your premium much simpler in terms of what's covered!

Thank you @Roger Lee  anxious to see what the contractor quotes for all this on Monday. Will keep posted! 

thank you @Lydia S. for your input! Makes much more sense that way! 

Thank you @Charlie Matos for the peace of mind. So you're saying once I move out in about 2 years my insurance premium should be reduced significantly? Owner occupied compared to fully rented out. 

Thank you @Elisa Uribe for taking the time to respond.  My realtor has done a great job thus far and is always right on top of what needs to be done.  I consider her to be extremely professional.  I just also feel like she's really pushing hard the meet the closing date next week, where I'm obviously more concerned with my due diligence being done properly before we close, so that there are no regrets.  I was certainly at the home inspection on Monday, along with both my agent and the sellers agent.  The home inspector made up a very nice, organized and detailed report, I understand everything from his end.  I am mainly looking for opinions from experienced investors whom have dealt with these things many times in the past.  There's definitely some things that need to be addressed before closing.  So credit from the seller is gonna have to be worked in.  Thanks again :)

To material deficiency, or to not material deficiency. That is the big question.  But really thats just the subject title.  I'm pretty sure I have a decent understanding of what is and whats not considered to be material deficiencies. So I had a home inspection done on my first purchase ever. And I am just going to bullet point everything here that was noted with some type of recommendation by the inspector: 

-repair / seal walkway / (cracked concrete)

-cracked retaining wall

-some cracks in foundation (house was built in 1930)

-few areas of rot around window trim***

-1 piece of vinyl siding missing

-garage structure very questionable, including roof, and signs of previous (maybe even current) pest activity***

-front gutter brackets not under shingles like they should be*** 

-crack in chimney

-some broken basement windows

-doors throughout the house that don't close / latch as they should 

-2 visible signs of knob and tube wiring 

-lack of support to beam in basement*** 

-cast iron water pipes in basement rotted (should be replaced with PVC)***

-some leaky faucets throughout 

May seem like a lot, but honestly I didn't think it was too bad of a list considering the age of the house. I starred (***) the things that I would consider to be most important and hope to get a price reduction so I can address said issues. This is going to be my first purchase (owner occupied house hack), and its currently under contract.  Closing date is supposed to be next Friday, but I honestly feel that its super rushed to meet that.  I am having a contractor get in there on Monday afternoon to quote me repair of at least the items I starred.  But I guess my question for you veterans is: how do you usually deal with contingencies. Obviously I feel like I'm being picker than most because I will be living there myself, and I want my first investment property to be a sound one with as little headaches as possible (surprise surprise, right?). But how far do you usually go with addressing issues that come back from home inspection report,  Would love ANY and ALL feedback.  Thank you so much in advance!

-Matt

Will be closing soon on my first house hack :) Decided to do do things a bit differently than the norm by going in with 20% on a conventional loan (to avoid PMI), and to put me at a better equity position to borrow against sooner. Current purchase and sales agreement price is $252,000. I'm locked in at a 30 year fixed rate of 4.625%. This seems pretty typical for a conventional 30yr fixed mortgage, does it not? I was told by the lender that no matter how much you put in on an FHA loan, you'd still have to pay mortgage insurance. Hence one reason I went conventional. Any other pros / cons to using this method assuming you have a comfortable cash position to support it? (FHA vs Conventional). Would love to hear all your thoughts about the matter! Thanks in advance

-Matt