All Forum Posts by: Steve Pickenpaugh

We just bought a duplex in Gregg county Tx which we will owner occupy for at least first year. We currently have the homestead exemtion on our single family residence that we will convert into a rental. On the form it asks what percentage of the property is income which would be 50% on a duplex but my wife works from home full time. Would this affect how much the exemption is? We bought March 20th which misses the Jan 1st ownership deadline but in further questions it appears we could potentially claim it if the previous own didn't claim it that prior year. Which he didn't. Or does anyone think it would be more beneficial to leave it on the single family the rest of this year until it would expire because of renting it at some point in the future. Thanks in advance!

@Greg Scott thanks for the reply. The numbers barely work but what concerns me is the $510 rent in identical buildings at the end of the street. From what I've read it's very difficult to stay out of slumlord category and make needed repairs if you're only collecting $510 a unit? Median rents in this area are low $800 range.

@Nick Dunin good morning. Yes, it seems everything on TammyLynn is up for sale? A million dollars worth of duplexes in addition to the quads. The selling prices aren't too bad but my issue is with rent. The other quads at the end of the street rent for $510. With plywood at $94 a sheet that puts them in slumlord territory if anything requires significant repairs? I in fact lived in a duplex around the corner on Nikki Dr several years ago so am well aware that you would have to basically buy up the entire block to "improve " the rents. Similar quads on Green st in Hallsville rent for $750, quite a difference.

I know restaurants took a pretty hard hit during the pandemic so makes sense if Whataburger guy needs some cash injection.

Rents seem to have held stable and have been paid inspite of moratoriums?

I've been looking to house hack since 2019 in East Texas. Began by educating myself and joining a local REI. Then covid hit and everything kinda paused. I watched the local market all through 2020 and almost nothing came on market. Now within the last 10 days at least 15 small multifamily units have listed for sale. At least 3 appear to be selling their portfolio. So now I'm gun shy. Are they just selling because the market is high and they're capturing appreciation or are they rats jumping off a sinking ship? I'm still new and a little stuck in annalisis paralysis but that's how I function. If I have a tree to chop down in three hours I'll spend the first two sharpening my axe. I will buy realestate but I want to avoid the obvious blunders. What do you guys think?

@Daniel B. Thanks for the info. I'll edit my post, forgot to mention I had contacted them about a HELOC but since my divorce 5 years ago I technically already have a fefi on this mortgage and they said I can't get a HELOC because of Texas law.

Hi guys hoping to get some feedback on an offer from TIAA for a cash out refi on my residence. It looks expensive, especially closing costs. I'm trying to position myself to have as much cash on hand as possible in the near future in order to purchase buy and hold rentals. Specifically house hacking a duplex or quad and renting out my residence. Both loans are conventional so no FHA to deal with. If rents don't crash ,my residence would basically break even after the re-fi and higher mortgage payment. So would consider selling depending on market and value. Some questions I have are : do you think values are going to tank and I should eat the expense to capture my equity now or should I just work with the capitol I have now ? Approx. $20k. Will banks tighten up lending so much I won't be able to get a loan anyway? My credit score 808 so shouldn't be an issue? Should I wait to see if interest rates will go down more or it's low enough now , do it? I currently still have 3 months cash reserves for my personal bills after this pandemic crap hit the fan. My wages have currently been cut by%50(auto mechanic) but wife's not affected .No credit card balances or other "bad debit" other than 2 auto payments...

Thanks in advance

Unfortunately the document has a confidentiality notice so I won't link actual doc. Here are the numbers:

Loan Amount :$132,000  (I currently owe $102,605 on mortgage)

Interest rate 3.85%      (current mortgage 4.625%)

Monthly P&I : $620.71

Estimated escrow :$377  ( may actually be lower, paying $349 now)

Estimated monthly payment $998 (currently paying $894)

Estimated closing costs $10,555  (includes $6226 in loan costs, + $4330 in other costs)

Estimated cash to close $18,840 (cash out to me)

Closing cost details :Origination charges $2,000                       

              .687% of loan amount (points)  $907    

          Document review fee to attorney $100       

                      Lender origination charge $995     

* costs I cannot shop for Total  $1,469  appraisal fee, title endorsement etc.

*costs I can shop for Total  $2,754  survey fee$550, lenders title insurance$1,429,Title settlement fee $775

and some miscellaneous taxes and transfer fees...

@John Underwood , will try that. Thanks

Hi all. I'm currently using some cheapo yi home security cameras that are connected to the internet through my cable provider with a Netgear modem/Linksy router combo. I am looking at turning off the cable internet and was wondering what experiences you've had or what you guys would recommend as far as a wifi hot spot or other options for connectivity?

Thanks for any suggestions, stay healthy my friends!

@Dennis Byrne, who did you get your HELOC through? I'm about halfway through application with TIIAA Bank.

Preapproved for a traditional loan but can't reach my loan officer. Not sure if she's sick, they froze all new mortgages or they're flooded with small businesses rescue loans right now.

Planning to house hack a "plex " and keep current SFH and turn it into a rental. Other than looking at my mortgage to make sure the bank doesn't have a "must be owner occupied " clause , and getting rental insurance what else should I look out for ? In your experience do banks normally balk at doing this as long as you're upfront with them beforehand?