All Forum Posts by: Nelson J Castillo

I'm in the process of buying my first home and have run into a few bumps. I'm hoping to get some feedback regarding the situation. I submitted an offer on a property and it was accepted. I'm using a conventional loan @ 5% down and am due to close on the house in 1 month. However, the current owner has a tenant in the property with a lease through April 2016. I have been advised by my title agent that if I were to go through with the closing, I would be signing some untruthful documents regarding it being my primary residence since there is currently a tenant. The current tenants are very dirty people. The house is a complete mess inside due to their uncleanliness. I also noticed that they had pets that seemed to be malnourished and their kids had scratches on their faces. Knowing this, I asked the owner's realtor if they could possibly end the lease this month or the following month (with me extending the closing an extra 30 days). The realtor basically told me that she has 30 people waiting to see the property, which I doubt since it was so difficult to see the property with the current tenants (they are barely ever home). She said to send a termination to her if we didnt want to move forward. I am at an impasse. Thoughts?

Nelson J Castillo

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Congrats Michael! Happy to hear about this.

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Originally posted by @Carlos Rovira:

Just thought I'd share a big win to inspire other investors:

I recently purchased a 3 unit triplex in Hialeah, Florida for $270,000. It was below market value for that area and I bought it under rented at $2,600/mo. The landlord had owned it since the 50s and hadn't raised rents in years, giving me some leverage to negotiate a lower price.

I bought it with a 75% LTV commercial mortgage at 4.6% with a 25 Yr Amortization. Total money down was about $67,500 (closing costs were close to nothing since I have a hookup at a Title Company).

One month after closing, I raised rents on all units. 2 out of the 3 tenants moved out and I had new tenants within 24 hours. When all is said and done, the rents were $3,550/mo.

Here is the breakdown of our return:

Rent: $3,550/mo

Taxes: $458/mo

Insurance: $475/mo

Mortgage Payment: $1,139.98/mo

Monthly Cash Flow is: $1,427.02

Cash On Cash Return = ($1,427.02 * 12) / $67,500 = 25% as opposed to 8% with the previous rents in place

I wish I could find 2 or 3 of these deals per year!

This is excellent news! Great job Carlos

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Welcome @A Victor !!!

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Good luck Anna. You will be fine and your hard work will pay off.

Nelson

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Thanks for the input Travis. I will speak to the mortgage officer.

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Hello all,

I would like to make an offer on a house that I want to be my primary residence. I know that this particular house requires roughly 15k worth of repairs. I would be putting down 5%. I'm wondering if it is smart to take out a personal loan to make these repairs since I dont have that kind of cash to fix the place. I am aware of the FHA 203k option, however I want to know if taking out a personal loan should be an option here. Any input is greatly appreciated.

Thanks!

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Hi there. I'm also a newbie from the Miami area. Welcome!

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Thank you for the advice Paul! I will definitely look into some of these options.

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All Forum Posts by: Nelson J Castillo

Nelson J Castillo has started 5 posts and replied 22 times.

Post: Miami / S. Florida Meet Up

Post: Buying first property process

Post: My first House

Post: 8% Cap Rate to 23% Cap Rate in 30 Days - Miami, Florida

Post: New member from Miami, Fl

Post: New Beginnings - Positive Banter Needed

Post: Personal Loan

Post: Personal Loan

Post: Newbie from Miami, FL

Post: Newbie in Miami, FL