All Forum Posts by: Robert Jensen

Does anyone here have insight on purchasing a rental property in Italy? Mainly location. I have been looking on the outskirts of Rome and it was recommended by an Italian agent that I look towards Abruzzo area for summer rentals. As far as my research, looking at airbnb listings and rental ads, it would not be hard to at least make the 1% rule in either location. 

Also to note, my mother has Italian citizenship through her parents so I could avoid the 11% vat and instead pay 4% which is a reason I am considering this. 

Any input greatly appreciated.

I am looking to purchase a second property while using the appreciation on my existing property as a down payment(30%). The property I am looking at is a duplex with long term tenants. I am currently with quicken loans and was told they could not use the tenants rent as income for a loan. 

Are there any recommendations for a lender that would lend based on existing rental income? I am in the Bay Area if that matters. 

Thanks

So I spoke with the chief director at the permit center in Vallejo. He said maybe they could work with me and use the valuation they gave me for all my permits. Which would actually be about right if I was to hire the work out. However, I was suppose to hear back about this yesterday. 

Which leads to my next question. What are my rights regarding this? Can you take the permit center to court if you feel you are unjustly being overcharged? Or if they are poking around your house fishing for things to write you up for? I know there was recently a court case in Oakland that now allows Inspectors to be taken to court statewide. Not sure if this would also include the valuation. I wouldn't hesitate to go to court if needed. 

Currently starting my brr journey and still learning. Main goal is to get to six rental properties as fast as possible. At the moment I am at the first r in brr on my first purchase. The house will soon be completely renovated so I am looking for ways to use the increased equity as a down payment for a duplex rental property. I will be looking at a minimum of $100k in equity to be used as the 20% on the duplex. 

I also just talked to the bank about refinancing(they called me) and they want to send an appraiser out to refinance on the new value of the house, which will remove the PMI and lower my monthly payment. I only put 3% down on this property and the banker said the equity could be used to essentially cover more, removing the PMI. My main concern though is that when I want to borrow on that equity I will not be able to because it will have been used towards the house to lower my payments? Am I wrong about this? Will refinancing have any effect on the amount I can borrow in six months towards my second BRR?

Thanks as usual, 

Robert

I thin its too late to do it at my own discretion. They already know what I'm up to. Wish I  knew ahead of time. I would of done things much differently. e.g. permitting the stove move before redoing the cabinets, etc. And it would have been legal. It's a game I wish I did not have to play. 

Their city site is down and they are not giving me any resources. It seems highly corrupt to me to base it on the cost of materials, which are all over the map. Basing it on the average cost of materials and labor is straight up morally wrong. It should be based on the amount of work the inspector has to do. Which could easily be done within an hour, even under 15m if the guy knows what he is doing. All he has to do is look and maybe take out the tape measure. 

I filed plans for a kitchen remodel in Vallejo. I was just told the estimate for my kitchen project to be $1000, which I find high considering it essentially just moving the stove 8ft and installing two outlets. They included market rate for the kitchen cabinets despite the fact that I built them myself. Said they used the average kitchen remodel cost of $15000 to come up with the estimate. I tried to get the amount down by saying I was building the cabinets myself but they say it does not matter...

Issue I also have is I did a bathroom renovation when first moving in since I had no bathroom. I also replace all the supply lines to pex and redid the drains. Total cost to me was maybe $800. I'm now worried when they come for the kitchen remodel that they are going to value all the work I did at a high amount and then make me pay them several thousand. 

I am a first time home buyer and find all this extremely un-ethical. Especially if they say my plumbing work values at $20,000 which they will probably do. This is straight up corruption. 

So just wondering if I am over reacting, if this is normal in other counties, and if anyone has dealt with Vallejo and their permit process? 

Peace,

Rookie BRR

My main gripe is being told I'm approved when I'm not. 

First its preapproval which is basically the same as cc pre approval. It means absolutely nothing. Then Im told Im APPROVED by Underwriting! - with conditions. Conditions are simply a couple of LOE that I send in 5m. Then Im told in a later email it will go to a processor then back to underwriting for FINAL approval. 

Why tell me its approved at all. I nearly gave my 30 days notice when I was told I was approved the second time. The reality is I still may be denied. They know I'm a first time home buyer...

If the computer saw it as a potential "monthly liability" it could have then asked me the appropriate question instantly after it received all the docs. 'Are you on a lease agreement?' Yes 'Is it month to month?' Yes --moves on to next question. 

So far all the underwriter has asked is; what are the two $1500 deposits for and what is the $4500 a month payment for. We have not even reached what should be the important questions; Is it month to month, (if No) Are you 'jointly and sever-ably liable'? 'How long is your lease?'. I'm guessing these questions will start to come in a week before the closing date (weeks after the initial question was asked). Raising the level of 'annoying' in the process. 

I don't think humans are going to stand a chance. Unfortunately, because there will be implications. As long as they make humans available when needed though, it should be a much smoother process. 

"If the underwriting was fully computerized and automated and had robots doing it.....youd be denied for this loan instead of having the opportunity to write those letters of explanations for a human to look over."

I do not think a robot would have had these conditions. It would have been able to see on my loan app that my monthly rent is $1500. The $4500 check to *** Real Estate every month(going back 5 months) would have to be total rent to my landlord, along with the two deposits of $1500 having to be my roomates. Since together it equals to a $1500 a month rent payment. The probability of it being anything else is zero. Since nothing else could calculate to a $1500 rent payment. All the other conditions were uploads (e.g. insurance quote, proof of home course, etc.). 

However, I do agree that a human is needed for certain instances. We do need someone available. 

@Alexander Felice 

Thanks for the advice! - "do better deals"... slowly will get there. 

"...also your comment that anyone can do it if they have the training..."

Just to clear, was not saying this. Saying the opposite, that only certain people are capable of doing it and that it should possibly require a bachelors degree in underwriting or at least an associates. Currently, it seems there is no stringent job requirement (anyone can do it).