All Forum Posts by: Steven Rogers

Thanks for the response James.

I am in good standing financially, and have liquidable assets to be able to fully pay both loans if needed. I plan to do 25% on the first house, and maybe 15% or so on the second. I get a  better interest rate on the first property if I live there, but I dont expect to be there anywhere near a full year. 

But given I'm in good financial standings, should I worry about bank #2 questioning much regarding not living in the first house a year? Does this happen much?

I'm considering getting a conventional loan on a multi-plex property, with putting 25% down and having it marked as a primary residence loan.

I am planning to possibly buy a nicer single family house for me to live in in a few months, and thus may not occupy the first property for a year.

Should I expect an issues getting the second loan for the property I'll permanently occupy? I've been told that providing a 'letter of explanation' to whomever provides the second mortgage is all I'd need to do. I'd just state that I wanted to live in something nicer. I've heard this is simple and is somewhat common.

Does anyone have any experience doing this, and/or any suggestions/comments?

Thanks!

Yup - it's residential :)

I can understand that the names on the loan is individual -but what about the name(s) that go on the title for the property? Anything else I should consider?

thanks for the responses thus far.

I actually was opting to do the taxes/insurance myself rather than an escrow account. Isnt this better, that way I'm not paying interest on the tax/insurance amount?

Also, I forgot to mention, the rate I have is 4.6% which feels a tad high. Is that reasonable at today's rates?

HI All,

I'm looking into setting up a 50/50 partnership with my partner. One thing I'm not too certain of, is what exactly should be done under the LLC name, vs the individual names?

For example, it seems as though the loan MUST be on the individual names (llc is not listed anywhere). Is this true? What about the name on the property? What about other things?

I'm looking for any advice/tips others may have regarding setting up the partnership. I understand you may not be a lawyer, but still appreciated :)

Hi All,

I'm in the midst of getting a loan on a 3 plex unit with 25% down. While reviewing the loan, it seemed like my net closing costs is quite high - are the fees below all reasonably priced/expected? I'd love to see what others think. This is in Texas by the way.

Thanks

$1500 - Origination fee

$275 - Doc prep fee

$425 - Appraisal Fee

$375 - Closing/Escrow fee

$100 - Lenders title insurance

$200 - Title Endorsements

$1207 - Owners title insurance

$400 - Survey

$120 - mortgage recording change

I had a question regarding forming an LLC for a partnership. My partner and I are located in Texas, and are planning to purchase our first unit together. We wanted to register an LLC for the properties to be registered under, as well as having a way of formalizing our partnership.

My question is, when the property is purchased, is the 'owner' listed the LLC? Or do we somehow leave it under both of our names? Additionally, what about the mortgage? From my understanding the mortgage is actually in our names individually.

Any other things to keep in mind? If it's not obvious, this is our first purchase - we're closing in a few weeks and I wanted to button up the details :) 

Thanks!

Disclaimer: I'm new to real estate investing (this would be my first property) - but I've spent a lot of time reading and researching.

I have a 4 unit MFH under contract, which I'm considering purchasing, and wanted to get a second set of eyeballs to ensure I'm not overlooking anything. For anyone that knows Houston, the property is near Westheimer and BW8, just a bit west.

Purchase price: 150,000

4 units, all filled. Average rent $750/each, this:

Gross monthly income: $3,000

Property in reasonable condition, no repairs needed.

Property Taxes: ~$3500

Monthly expenses - ~$810 - this includes $700/month HOA

Cash flow, with a 30 year mortgage, is ~$1k, which gives a ~40% cash on cash return.

note: the $1k above doesnt account for the 50% rule. It'd be less with the 50% rule if HOA is accounted for.

How does the above sound? A few questions/feedback I'd love to get:

1. Anyone familiar with the area? I live in Houston, but not sure of the specific area

2. What can I expect closing costs to be? (I'm a newbie investor)

3. Anything I should consider?

4. How do people rate the deal?

Thanks

@Joel Owens Thanks for the response. To answer your question - lets say it's a retail shopping center, and I have up to 600,000 cash on hand for downpayment + closing costs, and another 300k or so in reserves? Would that help provide some transparency?

Very helpful information, thank you both.

@Rob Boese Thanks, I asked about this because I hear from people that they went to the bank 'and couldnt get a loan for $x amount' and were only able to get '$y amount' - but these are people who have not found a property and were probing. So I was a bit confused on what they went adn got the loan based on. Would be great to get some light shed here if you or anyone else has any.

@Douglas Dowell Excellent analogy! Since you seem to be experienced in the space, do you maybe have some real-world numbers/examples to share?

Thanks!