All Forum Posts by: Michael Wentzel

@Felix Bird

You are correct. "Buying on the MLS" generally means that they are buying properties that are listed by realtors on the local MLS, which means they are most often listed on zillow, trulia, realtor.com, etc. If they not buying from the MLS, they are usually buying from wholesalers whose deals are not on the MLS or doing some sort of direct marketing to find deals (letters, postcards, phone calls, door knocking).

Mike

@Austin Suddreth

Generally speaking, you can purchase a home with low down payment, owner-occupied mortgage and move into it. If you move out of it in the future and turn it into a rental you can keep that mortgage on the property. You should ask your lender about the details. But as long as the mortgage is still being paid every month, I have never heard of a bank forcing some one to refinance the loan into a non-owner occupied loan/ mortgage.

And from what I read above, you are still living in the property, so I think you could go ahead with the refinance. If you move out some time in the future and it becomes a rental, the same scenario as above would apply.

Mike

@Marcella Brown  

You might need to add some details to this thread so we can understand what you're trying to do. After the refinance, it looks like you have negative cash-flow. Some investors might do that in a market where they anticipate a ton of appreciation. In the current market, I would say that is probably risky.

A couple other questions...

1) $500 in loan origination fees on $189,000 loan seems low to me. Also, if you can get 3.5% on a loan for a rental property, that is amazing. If it is owner occupied, that is probably possible. As a rental property (non-owner occupied), the interest rate will probably be higher.

2) Also a $5000 renovation to create $70,000 in value on the ARV seems unrealistic to me unless you are purchasing the property way under market value for some reason.

That's just a few points I can get from taking a quick look at the analysis. Maybe some others will add their insight. If you explain some of what you're trying to do, that might help as well.

Mike

@Chris Jones

We continue to be involved in Pueblo and are doing well in the market. I have some good contacts I can give you if you're serious about getting into the market. I don't want you to waste their time. I will send you PM.

Mike

@Carlin Randolph

I am not sure how it works in New York. In Colorado, we normally close with a Title Company and they make sure the deed of trust is recorded.

Mike

Thank you for the input. One of my private lenders is a Colorado attorney. So he drew up the note and deed of trust. We close with a Title company 95% of the time and the deed of trust is always recorded with the county. So I think we are okay on that side.

Mike

@Erica McFarland

Thank you for the quick reply. I found them mentioned in a few other forums about Mansfield. They seems to be the go to property management company in the market.

Mike

Thank you for the replies. I have never heard about an assignment of contract on an apartment complex and it seems that it is a bit rare. We will proceed with caution and see what comes of it. 

Mike

Hello BP,

We currently own rentals in Pueblo (CO), Akron and Cleveland. We are considering a purchase in Mansfield, Ohio and would love to chat with Realtors, property managers and/ or contractors who are involved in the community. Is there anyone out there that can share the good, the bad and the ugly about Mansfield with me?

Mike

@Michael R.

In Ohio we ended up using a promissory note along with a mortgage. In Colorado, we usually use a promissory note with a deed of trust. In either state we usually do 10% APR paid in monthly payments until we refinance the property into a commercial bank loan.

Mike