All Forum Posts by: Mike Redick

Tried to look everything up, but couldn't find everything. If I remember correctly, they covered the actual closing costs but I did have to cover the taxes, appraisal fee, and a notary for the final signing. The taxes were only $305 so not a big deal really.

One thing I did just notice while looking everything up is there is an annual fee of $99 unless you pay that much in interest that year. So that's a little annoying but if you're paying it down over time it won't really be an issue.

What kind of mixed reviews? They've been pretty good for me, some of their processes are archaic (phone calls instead of emails, etc.) 

The one minor issue I had is they insisted on a "drive by" appraisal where someone just looks at it from the outside, and that came back with a lower valuation than I thought... but you can request a real appraisal after that if you're sure the value is higher.

M&T won't do a HELOC on an investment property, but other lenders will. I've got two HELOCs on an investment property through PenFed Credit Union but you can try other banks/credit unions too.

That said, the risk with a HELOC is they are variable rate interest. M&T lets you lock the rate once, but I'm not sure if other lenders do. So if rates start going up (which they will eventually) the interest rate could become a problem.

There's a couple threads on here from about 2 years ago asking for PM recommendations, however a lot of the people in those threads stated they couldn't find a good company. Of the three companies I did sift out of those threads one's pricing was high and the other two didn't reply to me which seems like a bad sign.

I'm hoping things have changed, as I'm in need of a new property manager!

Does anyone have a recommendation for a good property management company in the Buffalo/WNY area?

Finally got an answer on this and it isn't an issue. :)

I was just filling out their online application... they have a question asking if you have lived or plan to live in  the house though. When I checked No it said they couldn't do the loan... have you looked into that? I was thinking of just checking yes then explaining when I was talking to the actual loan officer...

But then you're not BRRRRing, you're BRRHRing! ;)

I was just wondering this myself actually, thus finding this post, and I did a little math. Note that math isn't my strong suit, so please do your own instead of believing me!

That said, if you do a refinance you have closing costs. Looking at the refinance for one of my properties I'd pay $6k in closing costs to do the refinance, then all the extra mortgage interest.

I found PenFed Credit Union will give a HELOC on investment property with a rate of 6%. If I take out 20% that way, and pay the Repayment Period Payment ($222 rather than $100) right from the beginning (as opposed to the interest only payment) I'd pay $6,600 in interest.

So, I'm thinking that's the way to go. I'll probably keep an eye on  this thread though in case anyone has better points...

I keep seeing references to you making up numbers, then getting the Zillow estimates. Look up how to evaluate properties and deals and start doing the real math. For instance you're just comparing the mortgage (including taxes and insurance hopefully) to your expected rent, but what about repairs? Turnover? A simple rule of thumb is that 40% of your gross will go to expenses. It's a high estimate, but you can certainly hit that with a bad year. I had a unit spend an entire year either unoccupied or with a tenant who didn't pay, and left utilities in my name so I had to pay those bills plus eviction costs!

If your cash flow is negative can you still afford those extra/unexpected expenses?

You keep asking if it isn't better to spend $1k/month towards equity rather than waste it on rent, but isn't it better yet to get $1k/month in profit? 

It sounds like you're discounting finding a better deal due to lack of confidence. Really think about that, there's a lot of range between a house in perfect condition and something that needs a full rehab. Maybe a house just needs some paint and a new roof, for instance and you can get a good deal on that. Or buy a little further outside the city. 

Basically, I think you should do a lot more research, and math, before you buy anything. 

You said you make $70k (which is awesome for your age!) For comparison, I make $93k and I don't even look at houses over $80k. So that $300k house your looking at... 

 I would think that depends on what's actually in the lease right? 

Ok, thanks everyone. Asked the PM to talk to the tenants and the charity, and requested a copy of the lease for now.