All Forum Posts by: Reno Che

Does anyone have experience investing in Dansville NY rental market? I see properties there listed in the 75-100k range and was wondering what the market is like? And what people are getting for rents etc, any help is appreciated, thank you!

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Originally posted by @Frank Hinck:

@Reno Che

If you have a balloon payment then say the purchase price now is $150k, in 7 years you’ve paid it down to $110k. In 7 years the balloon of $110k is due. The bank appraises the property and you can get a loan with the bank for the $110k to pay off the original loan. Because you have $40k in equity / about 25% equity, many banks will let you use that equity as your down payment, some mortgage origination fees may apply.

Oh sweet I didn’t know that, thank you so much for the information that helps a ton!

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Originally posted by @Frank Hinck:

@Reno Che

You set the purchase price now, buy the home at that value with the owner financing and the down payment. When the time to refinance comes, assuming you use traditional financing then a bank will order an appraisal for the new value.

At the end when I want to purchase you say that I would refinance. Is this because the owner still holds the mortgage so I am refinancing to a conventional loan. So I would still pay the bank 15% down at the end and open a mortgage with them correct? Idk if that is a dumb question lol.

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My friend is selling their property, its a townhouse rental. It will be an off market deal and I was considering doing seller financing because then I wont need to put 15-20% down as i would from a bank. I am trying to out figure the best way to structure the deal. I have never done this before and I am looking for guidance on how it works. I was thinking I can give them a small down payment 5-10k then do a 7 year term at 6% and have the balloon payment due then. I am wondering how to value the property if I reach the end of the 7 year window, any advice would be greatly appreciated. Also is it easy to secure financing in situations like this from a bank or credit union.

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Originally posted by @Kevin Bennett:

Hey Reno,

Shed dormers are definitely the best way to maximize space on a cape style home. We've done a couple of them nearby you in Fairfield County, CT. They are a significant investment (>$20k) when you add up all the different trades that need to come in and out. I would definitely recommend hiring a contractor who has done this specific project before. Getting the finer details right such as roof slope, flashing, and overall aesthetic takes some forethought.

As far as the beams go, removing spray foam is not easy. Are these decorative beams that you are referring to or more structural? It sounds like your roof is sprayed with spray foam. You should not remove the spray foam from these as that is your insulation layer for your roof.

The numbers are something you'll have to run to see if it is a worthwhile investment given the additional costs of renovation. Yes, the space will increase for the shed dormer, but if you plan on renting it the costs may not make financial sense.

Let me know if you have any questions and I'd be happy to help.

Kevin

Thanks for the advice! I will have to get some estimates on adding a dormer to see if the numbers make sense for a rental. It may be something I add later if I sell the house. Also the beams are structural I really just want to add space to the attic I attached a picture if you have any thoughts or ideas on how to make it bigger

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I have a 3bd 2 bath cape cod house. The top floor is a 1 bd 1 bath, I was thinking about adding a shed dormer to create more room due to the sloped walls. I didn't know if it would bring a good ROI because eventually I want to rent out the place. I just wanted some thoughts on this renovation. My other thought was taking down the walls and having exposed beams but the beams are sprayed with foam insulation so if anyone has ideas on what to do for that.

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Originally posted by @Dennis Callaghan:

Pretty sure UR has a Facebook group to post on. I've had success on Craigslist and Zillow.

Thank you so much!

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Originally posted by @Martin Grizzanti:

Great area---they will rent quick.

Thanks for the tip! I was thinking rent by the room would be best for this area due to its proximity to strong, highland and U of R campus. Looking for 600-700 a bedroom is my goal. Where would be the best place to list my rooms you think?

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Originally posted by @Dennis Callaghan:

I think anything above 600 a room is too much personally but you could try and yes college students like all inclusive, they don't have to chase down roommates for RG&E and water bills. Another thing you can try which they do in other college towns but not in Rochester too much is charge by the semester. (2 (5) month semesters) which you could then get away with charging prob close to 700. Never tried myself with by semester but always an option

Thats good advice, thanks so much. I remember when I was in college at Alfred State we paid by the semester. That would be a great option too thanks for pointing that out! I remember in my small town we paid 400$ a month or 2000$ a semester no utilities included. Our landlord made a killing to say the least because houses there can be 30-50k

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All Forum Posts by: Reno Che

Reno Che has started 5 posts and replied 15 times.

Post: Sylacauga Alabama Rental market

Post: Dansville, NY rental market

Post: Seller financing balloon payment, need help structuring deal

Post: Seller financing balloon payment, need help structuring deal

Post: Seller financing balloon payment, need help structuring deal

Post: Shed dormer or not attic conversion

Post: Shed dormer or not attic conversion

Post: Highland Park Rochester NY

Post: Highland Park Rochester NY

Post: Highland Park Rochester NY