All Forum Posts by: Sean Han

Situation: 2 fam investment property purchased with non-conforming commercial loan, 30yrs fixed @ 5.6% with prepayment penalty (5%-1yr til 5th year being 1%) on Mar 2021. LLC under wife's name as a sole proprietor.

Plan: Buy the property under my name as w-2 investor with hopefully with higher appraisal (Fully rented with 9%CAP, did some upgrades).

Questions: Is it worth the journey? I deal with the pre-payment penalty, but my math says it is worth it long-run.

@Garreton Smith Congratulations! You are a brave man! I wish for more great deals in near future. How was your experience with the municipality? I heard Albany can be tough in getting permits and work done on time.

@Justin Roland I am an investor from New Jersey, looking for your recommendation on reliable local contractors in Albany region. I appreciate your help!

@Paul Paleologos Hey Paul, I am an investor from New Jersey looking for deals in Albany and Troy area. I would love to connect with you to discuss investing.

@Dalyn Hazell

You need to prove that you have a tenant in place by showing a singed lease and possibly rental income statements. The lender will consider 75% of the rental as your income and add it to your income calculation. Some lenders may require minimum 2 years of rental history.

Objectives:

To purchase a 4 units multi-family property as an owner occupant primary residence with FHA loan with 3.5% down, and convert my current residence as a rental property.

Current property: Single family 3 beds, 1 1/2 baths. 

Currently FHA loan, purchased in September 2019, monthly payment $2614. I am in the process of refinancing to conventional loan, expected to close in two weeks: New expected monthly payment = $2404, Expected rental income = $2500

Target property: 4 Units multi-family. 

Unit #1 2beds, 1bath, currently rented at $1650

Unit #2 2beds, 1bath, currently rented at $1600 

Unit #3 1beds, 1bath, currently rented at $1400

Unit #4 2beds, 1bath, currently rented at $1550

I am planning on residing in the unit #3, making the total rental income from the remaining 3 units at $4800. 

Considering vacancy, applying 25% off, projected income will be $3600.

Listed Price $540,000, Yearly Property Taxes: $16,500

Finances:

Current Income:

$82,975.52 yearly, /12 months = $6914.63 monthly.

Currently Expenses, showing in DTI:

Mortgage: $2404 (after the refinance)
Credit card debt: $14,000 in one card, monthly payment $140


Savings: $80,000 (In my wife's account)Checking: $15000 (My account)


Latest FICO: 700


I appreciate your input!