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All Forum Posts by: Nathan Buss

Nathan Buss has started 5 posts and replied 10 times.

Post: Misinformation in ads

Nathan BussPosted
  • Columbia, IL
  • Posts 10
  • Votes 2

I don't really have a question more of just starting a discussion that brings some sense of reality on how real estate agents posts ads. I have been looking at a property that just seemed golden for the past couple months. The price was right, it met all the "rules" and every picture of this property just looked pristine and beautiful. It finally went down in price 5,000 dollars and I just had to bite even though its a duplex and I am looking for a quad. Heres where things get pretty crazy. In the ad on trulia it states "This is a great cash flowing investment property. All the work has been done!" I'm getting pretty excited about this property and I am immediately let down with an initial response after an inquiry to the real estate agent that states "The property does need some work. are you open to that?" All sorts of things are running through my head. Is this guy really for real? He is supposed to be a professional real estate agent and blatantly contradicts himself from the ad vs. what he has said in the email. What gives? Is this a real estate tactic to get people to bite on properties or am I just making a bigger deal out of this than it actually is and has anyone else had similar misleading situations? 

Post: New PMI Rate for FHA loans

Nathan BussPosted
  • Columbia, IL
  • Posts 10
  • Votes 2

Hey Tom, I am not 100% sure on this but I think existing mortgages will be locked in with the higher rate. Check with a FHA mortgage lender.

Post: New PMI Rate for FHA loans

Nathan BussPosted
  • Columbia, IL
  • Posts 10
  • Votes 2

Hi all,

For those who have not seen the news on this FHA is reducing the PMI rate from 1.35 to 0.85%! This is a significant savings and could mean the difference from cash flowing and not.

Post: Saint Louis Agent

Nathan BussPosted
  • Columbia, IL
  • Posts 10
  • Votes 2

Hi Peter. Thanks for reaching out. I haven't purchased any properties yet and I am looking for an agent who is wanting help find a 4 family multi property in the Saint Louis area to purchase within the next year. 

Post: Saint Louis Agent

Nathan BussPosted
  • Columbia, IL
  • Posts 10
  • Votes 2

Hi, Just looking to connect with a agent in Saint Louis who owns and is knowledgable on investment properties. 

Thanks,

Nathan

Post: FHA Loans refinance

Nathan BussPosted
  • Columbia, IL
  • Posts 10
  • Votes 2

My question has been answered but for those who may be interested in this question I will say that the answer is yes it is treated as if you then had 20% in equity. 

Post: FHA Loans refinance

Nathan BussPosted
  • Columbia, IL
  • Posts 10
  • Votes 2

Ok say you bought a property using and FHA loan with 3.5% down. You must owner occupy for a year and after that year you plan on refinancing the loan into a conventional mortgage in order to free up the opportunity to purchase another property using a FHA loan(only allowed one FHA loan at a time). During the year that you live there from mortgage payments made and appreciation via rehab, inflation, and demand you have built up to a 20% equity status in the property(after doing some research I have found that generally a lender will not refinance an FHA loan into a conventional loan until you have 20% equity). The question is does the fact that the property has increased 20% in equity from other means besides mortgage payments would this still qualify as the 20%? This may be so obvious that I am over thinking it but who knows this might be something that would be beneficial to know as you pyramid up using a combination of FHA and conventional loans.

Post: First potential property.

Nathan BussPosted
  • Columbia, IL
  • Posts 10
  • Votes 2

Kyle- Thanks for responding! Due diligence still needs to be done the structure, roof, plumbing, and hvac along with any other possible future capital expenses. These will certainly be looked at for a more in depth analysis and I will report the findings. The other hesitations I have are location. The property is located in an area of town I do not frequent however; this could just be an irrational fear.

Elizabeth- Thanks for the motivation and the reminder to be flexible in analyzing the deals outside the “rules”.

Nathan- Ahh, yes vacancy does need to be factored in. This reminded me to ask the current owner or PM about the historical vacancy rate. I will definitely take on the responsibility of mow as the property does not have too large of a yard. Copies of leases and normal market rent rates are factors I have not considered and will need to probe further on. Thank you for covering on missed factors that could have an impact on the deal. I will certainly gather this information and report findings.

Post: First potential property.

Nathan BussPosted
  • Columbia, IL
  • Posts 10
  • Votes 2

Thanks for responding Chris.

The seller provided a rental verification form that provided the following information:

Unit #1- 500$

Unit #2- 475

Unit #3- 525

Unit #4- 500

Expenses recorded on the rental verification form include

Real estate taxes: 890/yr

Hazard and Liability insurance: 900/yr

Sewer: 886/yr

Water: 1284/yr

Gas: tenant pays

Electric: tenant pays

Maintenance and repairs: 1000/yr

Management: 10% or 2400 a year

Expenses break down to 7360/yr or 613 a month.

Thanks again, hope this helps!

Post: First potential property.

Nathan BussPosted
  • Columbia, IL
  • Posts 10
  • Votes 2

Hello, 

I am pretty new to this whole thing and do not currently have any properties however, I have read and learned about the analysis of deals on biggerpockets but would like some input to make sure I am viewing this deal correctly. Any help would be appreciated!

Firstly the type of investment I am talking about is a 4 family unit with recent updates including: flooring, fresh pain, updated electric panels, tuck-pointing, insulated windows, and general maintance items. The seller is asking 129900. Rents for 2000 total. Monthly expenses including PM is 613. Obviously meets the 50% rule but does not meet the 2% rule. This being my first potential property I do not have the necessary means to put 20% down so would be using an FHA loan. This brings the mortgage to about 700 with a 4547 down payment. Obviously I would have to make one of the units my primary resident for a year but for simplicities sake with that aside it is 2000 in total rent-613 for expenses-700 for mortgage=687 positive cashflow. If I am leaving out important or vital numbers please let me know and I will provide this ASAP.

Thanks again for any help!

Nathan