All Forum Posts by: Steve Salvini

I'm currently looking a 3,000sf single family home that was once a multi-unit and zoned R2 (2 unit) but also had an apartment in the attic, which I would need a variance to convert back to a third unit.  The first floor is move in ready and the second floor and top floor still have the kitchens, as well as plumbing for the bathrooms (second floor bath is complete).  It's more then I would like to spend but my thought is to purchase as a conventional single family, live on the second floor, rent the bottom unit immediately, and work on figuring out the top floor and rehabbing it.  This is a hard area to find multi-units and especially three units as they are sold immediately. 

Questions:

How hard and what is the cost to have separate heating, electrical, and water on each floor for utility purpose?  Would/should I do this?

Since its a single family now and zoned R2, can I just convert back to a 2 unit with no issues from the municipality?

Will converting it back to multi after I purchase as a single family going to affect the loan?

Would all the units require two entries?

Thanks!

I'm looking to purchase a Multi-Unit, preferable a four-unit using an FHA and want to hear about some creative ways to find one. I currently have a duplex and emailed people renting to see if they were interested in selling when I purchased my current place. I know the MLS is an option but I really like buying off market for obvious reasons.

@Christian Bors I agree not letting it get to me but at the same time it was more expensive because it was a duplex with rentals.  I disagree with the value but oh well it is what it is.  Hard to just let it go when it blew up the refinance since it appraised for exactly what I paid after I put about 10 grand into it and this was a year and a half ago.

@Deanna McCormick it was assigned through the lender, yes.

The appraisers credential are fine, in fact she has no prior complaints, but that does not justify not doing the job correctly.

I've spoken to the Account Executive as well as the Loan originator and they both agree with me that this is unacceptable and are also working on a refund.  The AE also had there internal appraiser look at it and they noticed errors also and were surprised by the errors.  Again, just the fact alone they missed the SF on the first report that decreased the value by 3000.  I have an email out to the appraisal company now to see if there is something that can be done.

I recently went for a refinance on my current duplex and like many people ran into issues with a low appraisal. Despite the fact that we went back with more comparable they were reluctant to use it even though it was on my same street and sold within weeks of my appraisal. They stated that it was "superior" to mine and would not make an adjustment for it.  I'm ok with them saying my place is worth is what it is, and not much I can do about that.  My big issue and one that has me really fired up and trying to get a refund on the appraisal, is that after two attempts and them stating they fixed wrong info on the report in a email, the report is still incorrect.  They have my room count incorrect, they don't have boxes marked with porches, decks, fences and don't have appliances marked in the report.  I know that I'm really scrutinizing this report but it makes me question the credibility of the actual report when I'm seeing errors on things that should be so easy to catch, what am I not seeing that could be wrong.  They had the SF wrong in the first report and we pointed it out and it increased the value by 3,000. 

Is there anything I can do to get a refund and am I just being a little to picky about this?  Everyone I have been dealing with the actual mortgage company has stated that this is not right and I have every right to be angry and want a refund.  I take this with a grain of salt considering they are the ones that are actually loosing out on the deal.

This is why I love real estate! Love trying to figure out creative ways to buy more. 

@Ross Denman - that's is a very good point.  I didn't think of that.  personal loan and refinance after? private lender? I guess even if I did 50 and moved the numbers on the other side. 

Current situation:
I recently found a duplex that is side by side that is deeded individually that I would like to buy and live in one side. I currently have an FHA financed duplex that I've been in for about a year and a half and was planning on refinancing out of until I found this. I would need to kill the refinance process and keep my current place in an FHA.

My thought:
Since they are on two separate deeds, I could structure my deal that I buy the investment side for let's say 20 grand since I would have to put 20% down. Then I would buy the side I would live in with a conventional loan with 5% for let's say 80 grand since he is looking for a hundred total. Is this a realistic option? The only drawback would be if the higher side doesn't appraise high enough right (I think it will appraise though)?  

Goal:
Trying to buy the new place with as little down as possible. 

Thanks in advance on any advice on this one. 

I recently sent a mailer and have been getting calls for commercial properties and vacant lots, which neither are what I'm looking for.  Is there something I can do with these leads?

@CJ Witmer that's awesome congratulations! I just started emailing, and calling people on CL who were renting what I wanted since the area I'm in is so competitive and the market was pretty dry. I worked on the place I bought for 6 months before I just threw a number out at her and she was willing to sell. I'm pretty handy so I convinced her to let me make all the repairs it needed after the FHA inspection to sweeten the pot on both ends of the deal (scraping paint and repainting is pretty easy) . Not a cash flowing machine but will be a positive cash flow with good CoC return when I do move.