All Forum Posts by: Ryan Husser

Hi Kristopher! 

Yes, your plan would make sense and it is a great strategy if you want to rent out your old place after you move. I would recommend having your new home under contract first before advertising your old place. You don't want to be in a situation where you have a tenant lined up, but nowhere for yourself to live. Sites like Zillow, Apartments.com and even Facebook Marketplace are great places to advertise your home. Just make sure the move-in date for your renter is after you close and move out date for your current home. 

Hopefully this helps! 

Hi Young! 

I am usually a little more conservative for maintenance and capital expenses. Normally I'll set aside 7% of gross rents per month on repairs and 8% of gross rents per month on cap. ex. Depending on the age of the property and how recently it has been renovated you can probably adjust these numbers slightly lower. So in your case you could probably get away with 4-5% for each since everything is newer. Hopefully this helps!  

Hi Bret! 

The reason most lenders won't consider it is because it does not meet the Fannie Mae or Freddie Mac federal guidelines. Most big banks will sell the loan to one of these agencies. For 1099 income they usually need a 2 year history documented on your tax returns and then they average it out over those 24 months. 

Your best bet would be to look at smaller credit unions or banks who would have more flexible loan guidelines. These types of banks don't sell their loans to Fannie or Freddie and would keep them on their own balance sheet. This allows you to get an approved loan with more 'non-traditional' income. Hopefully this helps and good luck!  

Hi Colton! 

Usually this would be a city by city decision, so I would check with your local municipality. That being said more often than not, cities do require an HOA to be part of a new development for permits to be issued. This is because common areas such as parks or roads are maintained by the HOA and not the city, thus saving them money. Hopefully this helps!

Hi Kenny! 

A good place to start would be the county assessor website. Usually they will have the breakdown of the land value as well as the assessed tax value. This will at least give you a baseline and you can check out comps. of nearby properties. Hopefully this helps! 

Hi Jessica! 

I don't know your situation, however the rates and borrowing costs would be much much less if you got a traditional mortgage compared to a personal loan. Cheaper loan = more cashflow and profit, so it is just something to keep in mind before you leave your company. 

That being said, you will need to close and sign on the property BEFORE leaving your job. Lenders will verify that you are still working at your company up until signing day. So if you leave before signing there is a good chance that could blowup the deal and you would lose the property. 

Run the numbers both ways and see how it shakes out for you, but 2 months isn't much time. Good luck! 

Hi Jose! 

It can depend from area to area, but it could be that high for a variety of reasons. The lender should've provided you a copy of the 'Closing Disclosure' which details all the loan fees and charges. If you are escrowing property taxes and insurance they will collect a few months worth upfront. My guess is this might be a good amount of those closing costs you are seeing. Let me know if that clears things up or if you have more detail on breakdown of the fees! 

Hi Sam! 

Congrats on your first deal and flip! That is super exciting. I would look at a local insurance brokers as they can shop around different carriers for you. 

What you will likely need while it is under construction would be a builders risk insurance policy. This will protect materials and also offer liability coverage while this property is a work zone. This would be a more expensive than a traditional homeowners dwelling policy, but I would recommend having it just in case. 

Once the property is complete, you can get a regular dwelling policy which will provide coverage until the property is sold. I don't know of any insurance brokers in your area, but I would start with Google and go from there. 

Hopefully this helps! 
 

@Roberto Joya Interesting, normally I've never heard that the downpayment reserves need to be 50/50. If getting money from other relatives ask your lender for a gift letter. You and the gifter will need to fill it out, but it is fairly common on the lender side. 

And you would be able to use and IRA as reserves, usually if it is in stocks or equities they can only use about 70% or so of the value since it is not liquid cash. Hopefully this helps!

Hi John! 

A very weird situation, I like your thought process however you way could have major tax implications for her with the buying & selling back. Also I am not a qualified tax person, so please consult a CPA or someone who is more qualified in this subject. 

Would it be possible to put her on the deed, pay cash for the property and then do a delayed financing cash-out refi? This might be cleaner from a tax perspective and then you could still close on time without extending the close date. Some banks might have a waiting period after closing before you can refi, so I would check that out first but it would still be better than losing the deal all together. Hopefully this helps!