All Forum Posts by: Meera Lakhavani

@Frank Naujokas @Tom Shallcross @John Warren Can someone please send me the lease as well? Thank in advance! mlakhavani at gmail . com

@James Mudd thanks for sharing the insight about FHA PMI. It will go away if you refinance out of an FHA loan though, correct? Perhaps when you have 20% equity?

@Account Closed Any idea if something similar would be possible in Chicago? I am hoping to do 10% down for an owner occupied triplex that exceeds FHA limits. I know that 10% down on SFH or condo is no big deal but things get stickier with multifamily purchases.

Thanks for sharing @Elliot Rudmann! I signed and am circulating to my network.

@Account Closed thanks for your fantastic work documenting the happenings in the city. My architect mentioned you by name when describing the pro ADU ordinance that he expects to pass this summer.

@Brian Morrison thanks for the recommendation! I just contacted Justin at Pratt Landscaping. 

@Brie Schmidt which company did you end up going with? Why do you choose snow removal companies over making a tenant responsible? I think I could pay less by getting a tenant to do the work but I suppose that introduces liability and reliability issues. What are your thoughts?

Hi BP friends!

Does anyone know if you are allowed to change your purchase price with an FHA mortgage before closing?

My closing date is 10 days from now, underwriting is not complete, and the attorney review period has not ended. My appraisal came back for $11k over my purchase price. I was hoping to increase the purchase price to the appraised value and request a $11k credit for repairs. This does not exceed the maximum rules for FHA credits. My attorney is willing to request it as long as it is possible from a lending perspective. My lender is looking into it but I was hoping to get some clarity from you guys as well!

Thanks in advance,

Meera

An update for anyone interested:

I managed to convince the wholesalers to agree to my FHA financing. It was a lot of back and forth because they wanted to keep my earnest money if financing fell through etc. Ultimately after analyzing the deal with some fellow investors I realized it wasn't as great of an opportunity as I originally thought, so I backed out. Now I am under contract for a 4 flat in a great neighborhood! It is turn key and cash flows nicely. I am happy with my decision.

Thanks again to everyone for the advice and input! 

@Travis Sperr I am glad to hear you have had success with 203k streamline! How long did it take you to close? I am trying to do a 30 day close and am not sure if that will be possible with a renovation loan. I know 203k standard can take 60+ days.

Thanks in advance!

@Lumi Ispas thanks for the insight! I will be sure to look out for licenses and experience.

Thanks also to @Connor O'Brien and everyone else that provided input. An update is that the deal is NOT FHA compatible because of the high estimated rehab costs.

I spoke to the 203k consultant on the phone, sent specs of the property and some rehab drawings -- at $55-$70 per square foot for the gut, the rehab will cost about $211k without even touching the exterior. This puts me way above FHA limits for a duplex with a $310k purchase price.

I am very happy that I learned this before putting up consultant fees and earnest money. It looks like the HomeReady loan may work though and they have higher loan limits.

@Connor O'Brien thank you so much for the insight! It is great to meet another Chicagoan doing 203k — I just sent you an invite to connect, would love to stay in touch!

That is helpful to know that you didn’t have trouble getting financing but the timeline was extended. Which lender did you use? Did they set your expectations that it would be a 90 day close? My lender (specializes in 203k at Guarenteed Rate) is saying that if we hustle she can close it in 40 days. But as @Lumi Ispas mentioned I will be sure to have an extension opportunity in the contract.

Thank you also for the consultant recommendation! How long did it take him to determine if the rehab was feasible? My understanding is that one of by biggest risks right now is the 203k consultant saying that this gut cannot be done for 150-180k. I have requested a 10 day inspection period to get the consultant to do this evaluation (as my lender recommended) but they countered with 5 days. I am in communication with the consultant my lender recommended to see if this is feasible for him. It might be very unrealistic though as @Account Closed mentioned.

I have ample cash to close, so my lender said that the only other things that can kill the deal are rehab costs being too high, ARV appraisal being too low, and rents not being high enough. I of course have validated these numbers and am not worried about anything except the rehab quote from the consultant. Is there anything else you think I should look out for or due diligence I should do?

Thanks in advance!