All Forum Posts by: Rob Na

There's a pretty slim chance anyone will lend you $100k without a sizable asset to promise as collateral. This is especially true if you've never had a debt this large before. You may be able to get a mortgage and use a much smaller LOC but that also depends on you credit. You can use a hard money lender after you learn the risks involved.

The best thing you can do as far as figuring out what you'll qualify for is to find a mortgage broker and tell them your situation. If you know your FICO score they can give you a lot of info based on that but its not guaranteed until they pull your credit.

Keep reading this board and you'll learn a lot!

So here I am thinking I found a pretty good deal on a REO condo that I can rehab and sell under market without many issues.

Turns out, after talking to my mortgage broker, that the property is not on Fannie Mae's list of warranted properties and therefor demands a 10-20% down payment with rates in the 6's for an ARM and 8's for a 30 Fixed.

If its this much trouble to purchase the property for me, then I don't think its a great investment as far as trying to resell it.

Can anyone shed some light on this for me? Do all lenders look at warranted/unwarranted status? Will it be tough to sell because of this quality?

I have been lurking here for a while however this is my first post and I decided to follow it up with a question for all you hard core PMs.

I found a neighborhood that is relatively close to home for my first rental purchase. I have been keeping tabs on it for a couple of weeks now to see who rents and for how much. I watch what is for sale and what has sold, for how much.

The homes are close together and not much more than 1000sq ft. Most are either 3/2s or 2/1s. It looks like 90% of them are in poor shape and have noticeable wood rot from the street along with a platter of other items that scream unmaintained. Just about every house has the standard toys/bikes strewn across the yard. Some even have a lovely landscape of broken trash bags. If you're lucky, the backyard will have grass. If you're unlucky, you're stuck with dirt and some cars.

I looked at a HUD home (attached) that was in poor shape. It needs many WDO repairs. The rear french doors were broken in with a brick and it looks like all the sheetrock has been vandalized. Were they looking for copper? I do not know why they would put holes between every stud!! I'm not interested in this house for that price, there is no way it would flow after all the work it needs; I'm just using this as an example of the hood.

The weird thing is, this is probably the only neighborhood (100 homes) that is like this. Every other one has nice $200k+ homes. I drive by places that are $400k+ just a few miles down the road. They are building a new subdivision of 50 or so homes right down the street. They are still clearing out all the trees (sad) so no telling what type of homes. This is out in the burbs and close to the local schools.

When I drove through today, I did so slowly and with a pen/paper. I must've written down 10 places either FSBO or MLS listed. It was 9:30am and most of the driveways had cars. Dont these people work? I'm going to call on all 10 of them this afternoon looking for a distressed seller. All the FSBOs also had "for rent" signs as a show of desperation. These homes seem to be renting for $700 (2/1) to $800 (3/2).

My question is, would you buy a rental here?