All Forum Posts by: Michael Valenzuela

The newer duplex gets $1800/month and the older one gets $1300/month(but can be raised to at least $1500). The loan terms for the newer duplex is 5.25%+2pts for 30years and the older one is 4.5%+1.5pts for 30 years. 

I have a question for the BP community about a couple duplexes. I am torn between 2 duplexes. Duplex 1 is older(1960), less expensive(155k), and able to put 25% down. Duplex 2 is a newer build(2009), more expensive(189K), but we can only afford 20% down.(which I have a lender lined up). We would like to have a newer built duplex that seems to be built with the landlord in mind with durable finishes and whatnot. The only problem is that with the 20%, comes a higher interest rate which affects the overall cashflow. What does the community think? The COC return is about the same for both duplexes.

@Will Mejia I would just make an amendment and make sure the tenants understand what’s going to happen.

Of course it is okay. The sooner you can line up a tenant the less vacancy rate you have. That way as soon as the renovation is done, they can move in.

I am unfamiliar with the habitability laws in Texas and I have been searching and reading all the rules/laws and can’t find an answer. Is providing heat and ac a requirement on a rental property? Currently the house has no central heat or ac and I want to make sure I am able to rent the house.

I am under contract to buy these 2 SFH that are currently being rented out. Had the inspections done and nothing major came back. We planned on going in and spending 10-15k to bring property up to par. The appraiser is saying the property is C6, which is not eligible for conventional mortgage. Any advice on how to proceed? Again, the property is being leased currently.

@Jose Vazquez nice find! How did you like your realtor? We are looking in getting a couple properties in moline as well.

@Michael Penn just remember that it all depends on the underwriters and what the lender will allow as far as LTV. And there has to be room for closing costs into the new loan so don't forget about that.

My wife and I are looking for investment properties for next year. What we are trying to calculate are closing costs. Since closing costs are similar no matter the loan. Wouldn’t it make more sense to buy a 4-plex with 1 closing instead of 4 separate closings and the associated costs? Looking for input.

So the bank actually denied the loan based on the lack of comps within the area. We have  a backup property we are looking at just in case this happened.