All Forum Posts by: Maurice Mugabo

Thanks everyone @Thomas S., no I haven't read that book, but I think I have it at home, it is on my read-list for sure, I am going to get on it.

Thank you all. 

@Steven Loveless, thanks for the reply, helpful... To your question #1, not right away, currently hands are tight with the time, I would have to wait at least 2-2.5 years for my kidos to grow up a little more. Thanks.

Thanks @Ross Denman for your response, helpful point of view. Yes, the appreciation, although I did not want to mention it since it is pure speculation, but yes, the area seems to be going up steadily, with a projected growth 6.2% next year, and seems to have been that way for a while (including the bounce back time or course). Thanks for the advice, private lending I haven't looked into it and I wouldn't feel comfortable as a newbie... 

Hi BiggerPoketers, I am thinking of moving my family to a bigger residence, on the other hand, I have been on bigger pocket for a while and my goal is to get the knowledge and

get ready to be a landlord. I am thinking of taking this opportunity and start by renting my current home instead of selling it. Here is the situation:

- Currently owns a town home 3 bed 2.5 bath, 1,677 sqft, year built 2008.

- it is worth $245-250K.

- Mortgage balance $177K.

- FHA 30 year fixed, rate at 3.75%.

- Monthly payment $1,224: Includes Mortgage&Interest, Taxes&Insurance, and $80/month PMI that will be taken off within the next 12 months.

- Definitily A-type neibourhood with 10/10 schools all around.

- There is also a high HOA, $170/month.

If I decide to rent it out, the expected rent in the area is $1650-$1700, it is in a pretty good shape and no upgrades needed, hard wood floor, granite counter top, it's all there, I don't expect heavy maintenance in the neat future.

Let me know what you think, is renting it a good idea? With the numbers, there is nothing much left as positive cash flow, but on one side I think it might be a good idea to sell it

and in the near future start looking on the other side of town for properties that are in areas with many renters and look for better cash on cash return, on the other side, I currently have a very

young family (2 very young babies), can't really find enough time for a more aged property that will need time for maintenance/finding contractors etc... So I am considering this to be my safe/quite entry into the business.

Thank you.....

Hello Fellow REI Enthusiasts, There is a townhouse complex I know of, it's one of the most desirable neighborhoods of the city, one unit is currently pending after less than 20 days on the market with the price the seller asked for... However there another unit which is on auction.com being foreclosed in a couple of days from now, bids starting at 135K for a home valued at 238K plus...My question is why would that happen? I am thinking, why doesn't the owner put it up for sale and pay the bank and cash the remaining 100K+ before the unit is put up for foreclosure at the court house? Can anybody think of any reason this would happen? It's a good time to sell and there is no any for sale units that would make you think may be he/she couldn't sell on time.... Thank you.

@Sean Grapevine

Thank you for your input. So you mean those 2 loans can be put in front of one lender at the same time, that actually would be good coz you wouldn't have to wait for the first FHA to clear out on the credit history in order to be able to get a new home. But one thing though, are you saying the credit wont be hit if you do both loans at the same time, or you mean the credit will be hit anyway but since I would have both of my loans done I wouldn't be worrying about anything (since I got what I wanted:).

For the lender, I talked to one on the phone and got a quote, but I haven't started the process coz I need to dig deeper for what is possible and also check that lender's services out. Just shopping I mean. There are many things to be lined up for me, first is, am checking my Home owner association, if I remember correctly the law, the community must be limiting the houses that are rented, need to check on this first.

Thank you all

@Brian CallanThank you for your explanation, that helps. That might actually be a good idea coz the PMI I have currently should be taken off next year 2017 anyway, so no worries about that. But the reason I wanted a new FHA for a residence is to be able to put less down, alternative to this I guess would be to keep the FHA and go out to look for 5% down conventional for a new residence if I can find it.

Thanks

Hello Fellow REI Enthusiasts, I have a simple question for you. If I refi my current FHA residential town house into a conventional loan, how soon can I get into a new FHA for residence? My goal is to keep my 3bd - 2.5baths town house and rent it out, and buy a new (a little bigger) SFH with FHA to live in. What does the rule book says? Is it right away, meaning after closing the refi I can start shopping or there is a time to wait? I live in ATL GA.. Thank you.

Thanks @Pyrrha Rivers

@Robert Cornoyer, @Pyrrha Rivers, you are welcome...yes this is what was coming to my mind for most of the properties that I looked at, so I said let me ask...great responses, thank you all... Another thing is, where does Zillow get those rents estimate? They always seem to be high, am I right? Where to go for good information about rent in any given area? Thank you...