All Forum Posts by: Shivam Patel

@David Da Silva

I purchased a 3br 2a in boonton,nj for 315k last September using fha but because of my DTI ratio. They made me put down like 10%. Im houshacking but once I move out I should be cashflowing 300$/mo, but If I can figure out the rules and regulations, I could potentially cashflow $800/moif I can create another bedroom. If I choose to get it to 20% I'll have to put down my savings to get it there, but might not have enough for the fees for refinancing. And if I do refinance will I lose my 2.3% interest rate or will I keep it? I've never done this before and I don't want to lose out on my interest rate.

@David Da Silva

That's a fantastic idea! But I would need 20% LTV to refinance?

@David Da Silva

Interesting. Maybe I'll sell my property in north jersey, recouperate the cash, and buy a better deal then.

@David Da Silva

I thought you can't use fha after your first deal?

I have tenants at my property and turns out the ovens broken. I checked it out, and found that the glass panel was held by a piece of tape when the last owner sold it to me. I called and ordered a new oven and they were going to install the new oven, but said they couldn't because there's no gas safety valve. Then they proceeded to take the oven back and charged me for delivery (10%) and now I have to fix that before ordering a new oven. Is it easy to install this, plumbers cost a ton of money, I've already dished out too much into the property.Im from boonton, nj. Or know of how I can get this done cheap.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $315,000
Cash invested: $40,000

I am currently househacking this 3br 2ba house, and will make upgrades until selling it after 2 years or 1031 exchange into a multifamily in philadelphia or outside philadelphia.

What made you interested in investing in this type of deal?

The house itself is under market value, and will appreciate overtime. I also noticed the investment opportunity in the land. Walking distance to Walmart, corner house, access to fire hydrant (lower insurance), as well as the township contract to renovate the downtown which is minutes away.

How did you find this deal and how did you negotiate it?

I found the deal through zillow, and negotiated the seller to take the offer hours upon submission on zillow before reaching openhouse date. Seller agreed.

How did you finance this deal?

I put 10% down, and a FHA loan for $289,000. My closing costs were $10,000.

How did you add value to the deal?

Househacking and slow renovation by added new hardwood floors, paint, and redoing the kitchen + bathroom layout for open concept. This is still in progress.

What was the outcome?

Outcome is still upcoming. Stay tuned.

Lessons learned? Challenges?

Always check if the appliances are intact, and also check if electrical is all working fine.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Alex Houser, great agent, and Andrew Wubbenhurst as my real estate attorney, both were fantastic.

@Michael Noto

The seller said they don't have proof of it but they did treat the property. I think I'll treat it every year just in case.

@Michael thatch.

Thanks! I guess you're right. Worry when I have a reason to worry, no point of it now.

Yeah, Just hope everything works out! Thanks nick!

@Nick Robinson

I'll finish my masters in next fall. My salary should dramatically increase. I can't buy a fourplex right now due to shortage of funds and my debt to income ratio won't get me approved at the moment because of student loans. I was going to focus on paying some of the student loans down this year to decrease the bad debt. Once my rental income shows on my tax return I can show that I have more income which I can leverage. I'm also managing the property myself so I might get overwhelmed a bit. Im currently doing full time masters, full time w2 job in Philadelphia which is 100miles away(I'm crazy I know haha). Work is 2 hr drive 1 way. Finding time to study and keep up with the masters while dealing with tenants is crazy rn. I figured even if I get the fourplex rn, managing it will be a pain rn until I get switch my job to something closer or finish my masters faster. Trying to get the job rn is tough haha, but when I do, I'll get some sleep back, and have more time to stuff. In which case I'll figure out funding. You guys think I should be worrying about the age of the house/termite thing.