All Forum Posts by: Sara Finley

Hello! My husband and I have 4 properties including our primary residence.  However - my husband is actually the "owner" on all of the homes. My name is not on any loan or mortgage.  I was wondering if I could use some sort of "first time homebuyers" mortgage or credit to buy an investment property?  Or is that only for primary residences?

Anyone have any experience with this?

Thanks!

Sara

@Joe Splitrock  I didn't think of it that way... thanks for the head's up!  This is why i posted the question in the first place...

Hello!  This is my second post as a newbie and looking for some advice.

We currently have 3 rental properties (closed on the last one in June).  Things are going well but I don't have enough capital right now to do another deal.

I found a Bank-Owned Property listed at $37,000, which i know is worth at least 70 to 80k.

Our previous private lender (aka father-in-law) is not interested in a 4th deal at this time.

3 Bed 1.5 Bath, off street parking, Rents range from $1200 to $1300/month.

I am looking at HML (eeeewww I know) and am wondering if there is a way i can get the full deal covered by the loan (w/little or no cash out of pocket) because of the loan to ARV ratio. If I am reading things right - I could borrow 40K (which is only 50% ARV)? Or am i totally calculating that wrong. Property needs less than $5,000 in rehab, paint carpets, etc.

Orrrr... should i take it easy and build up some capital and wait for another deal?  

Thanks

Sara

Thanks @Bettina F.!  That's a great idea!!!

Done!

Thanks guys! I really appreciate the honest answers! I am going to keep it the same . :)

Hello - We just purchased our third rental property and have listed it. We have met and vetted 3 potential renters ... after the amount of interest we received I am feeling like I listed the property too low. Would it be unethical to tell the renters the situation and if they would be willing to pay $100 more a month? I think I know the right answer I just don't know if there is anything legal about the situation or if I would just scare them all away. Thanks for your responses. Sara

Hi @Karen Young!  We have used this flooring in 2 of our rentals and in our kitchen at our own house.  The day after installing in our kitchen we had a party and the kids decided to have a water balloon fight. There was no damage at all to the floor. We also have a tenant with 4 small dogs (long story) and after two years that floor looks brand new as well.

http://www.homedepot.com/p/TrafficMASTER-Lakeshore...

They have many colors but we prefer the one above. My husband easily installed it himself. Let me know if you have any questions.

I don't have much experience with carpet I'm sorry!

@James Mc Ree Thanks again! I am going to wait until we close on this latest property to approach him.  He currently has most of his money in 1 - 2% bonds - so this would be a much better proposition. 

@Zachary Corum  Thanks for sharing your strategy - I am looking forward to getting into something like that in the future! and thanks for the links.... I have some reading to do!

@Steve Babiak That was another question I had -- how do you determine the actual property value to ask for the loan against?  IE - how do I calculate property value accurately?

@Chris K. I believe the LTV is 75% - and the origination charges include $1200 in "points" to lower the interest rate. They did not offer any loans w/out points included.

@Steven Gillmer Good luck!

Hi @James Mc Ree! Oops about the headers, they are RATE , APR, POINTS, PAYMENT

Thank you so much for the wonderful advice... I didn't even think of that. Refinancing with him would make so much more sense and would be so much cheaper.  The tough part will be convincing him - but if I have everything laid out so he understands it, I might be able to make that happen!  Yay!

@Zachary Corum - I was looking at Heloc rates today but I was having a hard time understanding the difference between that and the cash-out refinance (or the benefits/negatives to each). Everything seems so complicated at first I guess I have some more reading to do. Thank you for the suggestion!

@Steve Babiak Thank you as well!! I was wanting to pay him back since he does have limited capital (with our third property it will be the last).  I will look in to the Equity Line of Credit - sounds like that might work out as well.