All Forum Posts by: Pillar Jane Lagrito

One of the properties I'm interested in has 4 bed/2 bath in the listing, while public records (BS&A website) says its 3bed / 1/2 bath. I was assuming they added a bedroom or turned an area of their existing home into a bedroom without a permit. So if the actual number of beds and baths is different from what records say, I was wondering if it's going to create a problem when securing the rental certificate.

0 Votes

Warren, Michigan

Hi all! I've been searching for investment properties in Warren/Eastpointe area of Michigan and have cme across some propertirs, which I beloeve, may have unpermitted addtions (bathroom or bedrooms). How does that affect the application for the certificate of occupancy or rental certificates? Will you not get certified because of these issues? I'm assuming the additions are unpermitted since tax records are different from listing info. Thanks in advance!

0 Votes

Warren, Michigan

Quote from @Joe Villeneuve:

Quote from @Sergey A. Petrov:

It is not free money if you are paying 3.5% interest on it… a cash offer does give you an advantage but it is not always the winning offer (especially if you are low balling). there are other ways of structuring a “cash offer” as well especially if you plan on using additional equity in an existing property… look up bridge loans as one example

If all properties in question have positive CF, then it is in fact free money since the rest of the total cost, the mortgage payments, is paid for by the tenant...not the owner. The only thing that is a cost to the owner is the cash they spend. If you pay all cash, you may think your cash flow is better due to no mortgage payment, but it's an illusion. That added CF is just recovering your cost, much like the smaller CF is recovering your cost, but your cost when you pay only 20% DP is 5 times less than paying full price (all cash). Unless the cash flow from an all cash buy is 5 times what it would be buying with just a 20% DP, you're losing money with an all cash deal.

Thanks for bringing clarity to this. Run the numbers and all cash only makes 3x as much as 20%dp.

0 Votes

Warren, Michigan

Quote from @Theresa Harris:

If you plan on buying more rentals, get a mortgage. You have less money invested and can use your money to make it go further. Nothing wrong with buying with cash initially to get a lower price and then get a mortgage.

Thanks Theresa, thats what we were thinking, buy in cash to hopefully get a ower price and refi later.. but with the way the market is going, we're kind of hesitant as home prices may go down soon.. Also, needed feedback on any pros and cons of both options.

0 Votes

Warren, Michigan

Quote from @Sergey A. Petrov:

It sounds like you not buying with cash. You are buying with the borrowed proceeds from the refinance. What is the interest rate on that? Can you get a better rate with a traditional mortgage on the new property? If you can buy 3 with currently borrowed funds, how many can you buy if you used those funds as a 20-25% downpayment towards new acquisitions?

Its refid from our 1st rental which is cashflowing really well, so its basically free money now. Refi rate on that one is 3.5%, so having a mortgage now would have higher interest. We can probably buy 3 for 20% down. Asking the question coz i'm thinkibg we might be able to lowball some offers due to having a cash transaction, then refinacing it to buy 2nd, and 3rd

1 Vote

Warren, Michigan

Me and my husband have refi'd our house for the purpose of reinvesting the cashed out money from the refi. We are looking into buying our second rental, and first out of state investment. With the current trends right now, where interest rates are high, and the market is unstable, would you advice buying a house in cash or using a mortgage? If we buy in cash, we plan to lowball and do cash out refinance when the rates get better, and use the money again to buy another house.. But if we buy with a mortgage, we can probably get 3 houses with the cash we have on hand.

0 Votes

Warren, Michigan

All Forum Posts by: Pillar Jane Lagrito

Pillar Jane Lagrito has started 2 posts and replied 7 times.

Post: Rental Certifications in Warren Mi

Post: Rental Certifications in Warren Mi

Post: Rental Certifications in Warren Mi

Post: Buy cash or use Mortgage??

Post: Buy cash or use Mortgage??

Post: Buy cash or use Mortgage??

Post: Buy cash or use Mortgage??