All Forum Posts by: Steven Booty

Thanks!

I found a single-family house that works as an investment property but I'm pretty sure the owner has an upside down mortgage on his hands and likely no equity in the house. His asking price is too high for it to be a good deal.

Are there any strategies I can take in this situation? (besides moving on)

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $270,000
Cash invested: $14,000

Live-in two unit

I'm bidding on a house that is a 2-family that has a 2 bedroom on the second floor, and a huge one bedroom on the first floor. The basement is part of a mother/daughter setup with a full bathroom and kitchenette. There is a 'bedroom' there too. (Quotes because it doesn't qualify due to lack of egress window)

I'm 99% sure the basement was finished without permits. I could possibly change the 'bedroom' into a bedroom. However I don't know if I the kitchen and/or bathroom is something that could bite me in the behind down the road.

What does BP think? Have you encountered something similar before? 

Thanks!

@Mark Scarola,

I think staying local is preferable. Though, that depends on what you mean by local. I'm open to looking more south, however much of the multi-family properties are in Philly and Atlantic City suburbs which are too far for me.

I've been looking for a 2-4 unit since this March. I'm not aware of my local REI; how can I find that? Does BP have a section for that?

My current REI strategy is to find a 2-4 unit property. However inventory is low with many decent properties being out of my price range (~$350k +/-) or in need of serious repair (foundation issues, etc.)

I'm thinking about getting into a flip/BRRRR strategy since there seems to be no shortage of single family homes in need of updating/repair in my area (Monmouth County, NJ).

Some facts on me:

- Currently renting, but I'm not on the lease so I could leave whenever

- Full time job

- I have no primary residence yet, so I'd use a FHA or other owner-occupied loan

Should I stick it out and keep looking for a good multi? Should I get my feet wet with contractors and single family homes? What does BP think I should do?

Thanks!

Lately I've been walking through houses that have strange (by modern buildings) heating arrangments. One house had only a firebox in the kitchen while the 2nd floor bedrooms had nothing. I just offered on a duplex that has one boiler and only has a radiator in one bedroom in each unit (units are 1st floor and 2nd floor). Radiators are also in other rooms, too. It's just the one bedroom in each unit lacking a radiator.

Is this something that you usually do something about or is it typical to see how the current set up works out?

Thanks!

Oh yes! That's the very important detail I neglected to mention! 

I've found a few of these myself, though few are willing to lend on duplexes like I want to buy. For example, TD Bank offers mortgages at 3% down, lender paid PMI. I found that Investors Bank offers a program with 5% down no PMI on a duplex (but no larger). Does anyone know of any other lenders that offer similar programs?

Thanks!