All Forum Posts by: Riley Blake

Anyone know the pros and cons of basement OSB wood subflooring and pros and cons of a concrete subfloor?

I’m looking at a house in Minnesota that has OSB wood subfloor in the basement. I haven’t heard of many houses like that and wondering what problems I might run into down the road. Concrete to me sounds like the much better alternative. I’m wondering if anyone has ever backed out of a deal because the basement didn’t have concrete flooring.

- Riley

How does it typically work if you want to get a loan with the rehab costs built in? Say I want to buy a house for $240k and put 10k in repairs into it. I've heard of a loan called FHA 203k, is the equity needed still 3.5% similar to the normal FHA (i.e. 240,000 * .035 = 8,400), and what are the requirements for this loan? I've heard there can be a lot of hurdles to jump through to get approved for this type of loan. If anyone has any more information on the FHA 203k loan they would like to share, feel free to message me or reply to this thread. Thanks, Riley Blake

@Eric Veronica I’m looking at an FHA loan to utilize the BRRRR strategy, lower down payment, worse terms, but I would eventually be refinancing out of the loan to have more favorable terms with a conventIonal loan.

Hi,

Do people usually pay closing costs out of pocket or is it typically wrapped into the loan? I'm looking to obtain an FHA loan for my first owner-occupied duplex. Also, I've heard FHA requires PMI. Is .5%-1% of the loan a good rule of thumb for estimating PMI?

Riley Blake

@Daniel Kurkowski Thanks for your input! Do you have any experience in small multi-family investing? Is it hard to find a duplex in the Twin Cities area that will have steady cash flow? 

@Jordan Moorhead I'm looking for a small multi-family place, such as a duplex, for my first owner-occupied rental property. Do smaller multi-families typically get valued based on NOI/Cap Rate or is that typically reserved for larger apartment complexes? I'm just beginning my real estate journey and was going through some property analysis and was just curious about cap rates in the area.

Hi,

I'm trying to determine the cap rate in my area. I could look at sales comps, but are there other resources that I can utilize to find this percentage, or is it best to talk with local realtors to find out? I'm looking in the Twin Cities, MN area.

- Riley Blake

What if you don't intend to sell the property, but just move out to keep it as a rental property?

Hi,

If I understand correctly, you have to live in the house for one year to qualify for an FHA loan. However, if you intend to move out after the one year do you have to refinance the loan or is that only if you move out during that first year?

-Riley Blake

Hi, 

Is it worth it to go through a mortgage broker on my first deal? I would like to obtain an FHA loan to purchase a duplex to house hack, but I'm unsure whether or not I should go through an intermediary between the lender and myself. How does a mortgage broker earn their commissions? Would the borrower be the one paying the broker?

- Riley Blake