All Forum Posts by: Shaun Sullivan

@Marquell Jones disregard if you've already done this, but if your plan is to sell within a few years, do a break-even calculation to make sure the refi is worthwhile.  Not sure what your current loan looks like, but if the only goal of the refi is a lower rate, that lower rate won't benefit you if you don't hold it long enough to recoup the costs of the refi, not to mention the time spent doing it.

I know when calculating DTI for a 5/1 ARM loan on a primary residence, they add 2% to the rate. When trying to get a subsequent loan for a rental property, would they just use the actual PITI from the primary home loan, or would it still be the PITI assuming 2% higher rate?

Also, are ARM offerings & qualification standards pretty much the same for rental properties as primary home loans?

Not looking for a discussion on the pros & cons of whether to use fixed or ARMs, just hoping to learn how lenders actually treat them.

Thanks in advance for any input.

@Russell Brazil  ah, just needed to google the word "warrantable" to learn that it's a FNMA set of standards.  Got it.  I sent Michael an email, so I'll try to get to that one... and I'll keep an eye on the events forum for the Gaithersburg meetup.  Thanks again.

Thanks @Russell Brazil.

What makes the Ft Detrich area stuff hard to finance?

Thoughts on the Ballenger Creek market in general as they continue developing Westview South and the Jefferson Tech Park? I just sold my TH in Ballenger Crossing this past summer to move into SFH, so I know most of Ballenger Creek doesn't have good rent/price ratios, but it seems that little area of Cimarron/Conestoga/etc might be decent... not sure if you're familiar with it and whether you think it could benefit especially as they develop further south along Rt 85. There's a listing on Cimarron that currently has tenants and with a bit of negotiating might be able to get some positive cashflow.

Also, are there any meetups coming up in this area?  Is it just the Hagerstown & Gaithersburg ones within a half hour of Frederick?

@Russell Brazil @Mike Webb @JR T. @Trey Williams

Looking for areas to invest around Frederick, and came across this thread with lots of helpful info.  Can any of you provide thoughts on:

1)  Fredericktowne Village (not the Golden Mile mall area... the area NE of downtown, Stratford Dr, etc)

2)  Country Side (off Rt 85 just north of English Muffin Way)

3)  Old Farm (across Ft Detrick from Amber Meadows)

Thanks for any input.

Thanks for all your input here @Russell Brazil.  Just browsing through discussions on here about the Frederick and surrounding areas, I've seen your posts all over them.  Looking forward to continuing to gain from your knowledge as I try to start investing in this area.

@Vince S. Are you familiar with Country Side (off 85), Fredericktowne Village, or Old Farm (across from Ft Detrick). Trying to figure out what communities I should be looking in if trying to get in without doing a big rehab but still have positive cash flow. There are some current listing that are interesting in those areas... certainly not huge instant equity plays, but around the 1% rule. Seems I'll need a bit more revenue out of anything within city limits to account for the extra taxes, and need to figure out exactly what the HOA fees cover.

Also, I'm wondering if my maintenance/capex estimate can be a bit lower on TH and condos since there's less to break/wear than a SFH (ie, fewer windows, less in the way of sidewalks/driveway/yard, no roof cost if it's a condo where the HOA covers it, etc).

Thanks @Brandon Smith.  Since you're out here like me, not too close to Frederick or Hagerstown, if you have a minute I'd be interested to get your perspective on my location inquiry in this other thread:

https://www.biggerpockets.com/forums/563/topics/403135-location-searching---downtown-vs-suburb-vs-rural

@Account Closed Thanks for the advice. I'd love to have property in Middletown. Actually, our ideal spot for buying a house this past year was the area between Middletown & Burkittsville... but we couldn't afford the house and acreage we wanted there, so headed 15 minutes west over the mountain. As for investing there, seems long past the time when one could find something that would rent for 1% or more of FMV... would have to get in with lots of equity through a big rehab or something.

might want to check your math on that.  I'm happy the rate decrease has been suspended, but you're way understating the impact on a $417K loan... $87/month.