All Forum Posts by: Steve Salvini

Great way to start out. If you can find something off market and negotiate a price, you can work backwards with what they want to get after everything, and then roll closing cost in that way. FHA will require that you bring at least 3.5% to closing so there is some calculating you will need to do when structuring the deal.

Good luck!

I love the mentality and couldn't agree more about it is already messed up so what's the worst that happens. There is something to be said about taking garbage and making it gold. 

I appreciated reading this, as like you stated, most people are saying they can find other deals instead of doing this work. I've renovated personal homes before and have yet to find my first true flip so it's nice to hear that doing the"work" yourself is worth it. 

Thanks!

Good article if you haven't seen this one yet. 

https://www.biggerpockets.com/renewsblog/2010/06/30/introduction-to-real-estate-analysis-investing/

I think it depends if you can sell and pay both loans off. If you were able to sell and pay both loans off you would be actually in the positive. Plus, those loans would be out your name allowing you to get a loan and buy something else with positive cash flow. If you sell and it doesn't cover what you owe, then you are really not achieving anything, except selling an asset. 

@Wayne Brooks Thanks Wayne.... the PMI doesn't bother me as much as paying 20-25% on a multi-unit if I stay in an FHA and want to buy something else with a conventional. My question is after I refinance and lets say I only have 85%LTV in my current duplex with a conventional after 8 months from now, can I still use an FHA loan to buy another duplex and use my current conventional loan duplex as a pure rental property? I'm just not sure how a bank is going to view that.

@Christopher Giannino yep would have all intention to occupy the new place. is there any drawback to refinancing? I feel like I'm missing something with doing it. payments are going to be about the same, no life long PMI, no closing cost, less I would owe overall, and would have an option to use FHA again to purchase another 2-4 unit with 3.5% down.

@Wayne Brooks even with only 85% LTV on the duplex I'm currently in?

I'm looking to refinance a duplex that I'm owner occupy out of an FHA loan into a convention loan with 85%LTV. Even at a higher rate my loan payback is less then with an FHA backed loan. If I do this and decide that I want to buy another multi-unit in the future am I able to use an FHA to do this? I like the 3.5% down that an FHA provides.

Thanks for the feedback, looks like I might do a few upgrades before proceeding forward.

My mulit-unit appraised for 184,000 when I purchased it 14 months ago and am curious with the work I have done would it increase it to 200,000.  I ripped out the carpet in one unit that was just terrible and redid the hardwood and redid the hardwood on the first floor unit that was is awful shape.  Also, I redid a LR fireplace wall and ceiling that was painted wallpaper, painted the first floor unit and second floor LR and sunrrom, and fixed a ceiling in the bathroom that was in bad shape.  I'm considering having new windows installed, would this be necessary to get to the 200,000 mark?