All Forum Posts by: Sharon Ho

I know many leases in the area start July/August with the start of the school year, but lease renewals tend to happen real early (end of fall or early winter) for those wanting to renew for the next school year. But if you're not renting to students, I'd say any season other than winter :)

@Mark Reiland How does appraising as if improved look like? Would I present the appraiser with a list of repairs we plan to make? If usually done after the foreclosure sale, is that period within a week of sale? Month? Or potentially further out? Thanks Mark! 

@Mark Reiland I think you'd be able to offer great insight on this from a unique perspective. :) To my understanding, some buyers won't be able to get appraisals done when they seal the deal. For foreclosures you've appraised, do you usually appraise the house after purchase then? Or do you appraised foreclosures that have been flipped? 

I recently purchased a duplex and am excited to start planning for a second deal. Currently in research mode... My goal is another multifamily. I'm also intrigued by the BRRRR method and plan to learn more about this strategy. I had a chat with someone about purchasing a foreclosure property together in the future and rehabbing it. Does anyone have any experience or insight on purchasing a foreclosure in Iowa City/Coralville area? Thanks in advance! :)

@Ryan Daigle & @Daniel McNulty Thank you so much for your insight! I found this to be very valuable as a new real estate investor starting out! :) Many thanks again~

I'm curious to learn more about personal finance choices that BP members have made in addition to owning real estate. As you build your wealth, what are your "must have" numbers or "must do's" in life? Many recommend maxing out retirement options first before reallocating money into other pockets. Examples-

1. - Max out Roth IRA (currently $6k max)
2. - Max out company 401k matching (or the equivalent of 401k) 
3. - Contribute to regular IRA (up to $13.5k)
4. - Pay off all debts (except mortgage) 

What are some personal finance tips you always give to others and why?

@John Warren "The FHA product is good, but the fees and PMI kill a lot of the benefits of the loan." This was exactly my thought. I'm not sure how long I plan to hold, but I'm hoping for as long as possible! 

@Tanvir Sattar Yes, the 0% down was a huge relief, especially during current times. I'd feel better having those funds tucked away for emergencies. Plus, lots of people are saying great deals coming in the next few months... :D

Thank you both for your comments!! 

Ask seller's agent for - list of recent updates, rent rolls, current leases

Look at - layout of the house (does it work long-term), storage space, plumbing (look under sinks and around toilets for water damage), signs of settling and framing issues, slope of landscaping, roof and gutters, washer/dryer hook-up

Hello! I'm new to real estate and planning to purchase a duplex to owner occupy as a first home purchase. I'm currently talking with lenders to get an idea of the loan options available to me and have narrowed it down to two. Hoping to get some insight from more experienced real estate investors. I intend to buy/hold, but never know what the future may hold. Let's assume the property is $300k. I've made the numbers as accurate as I could. 

1: FHA: 3.5% down, 2.8% 30 year fixed, $205 PMI, $16k funds to close, $2015 monthly payments

There is an option for me to "buy up" my rate if I need help with closing costs. I can buy up to a max of 3.5%, giving me around $8k to use for closing costs, if needed. I won't need $8k.

2: ARM: 0% down, 3.5% 10 ARM (amortized over 30 years), $0 PMI, $0 funds to close, $1980 monthly payments

This is divided into 2 mortgage payments - $270k at 3.5% and $30k at 4%. When it comes time to refinance ARM loan, caps are 2/2/6 - 2% the first year over the start rate; 2% every year thereafter to a max of 6% over the start rate. I would refinance to a fixed-rate loan.

My situation - I currently have the funds needed to close (~$16k) with the FHA loan, but I won't have much left over for emergencies. One unit currently has a signed lease until next year, covering the majority of the monthly payments. I anticipate finding roommates to cover the rest and more. Once I move out, the two units will generate a solid monthly cash flow (after all expenses, capex, vacancy, etc.) for both loan options (~$100 more with FHA). ARM cash-on-cash return is much higher given the 0% down. If I go with ARM, I will have a healthy reserves fund starting out and cash available for a down payment for the next property (~1 year later).

@Gavin Kruse thanks Gavin!! I will sign up for the next meeting!!