All Forum Posts by: Tom Medwin

I appreciate the feedback. As of now I cannot find cheaper financing than 8%. Honestly though I'm very happy to get 100% financing from my private lenders. I have a few guys who would fund my flip deals over the years, but it has been harder to find someone willing to let me borrow the funds for a longer period of time.

I did factor in taxes and I figured I'd manage the property myself for a while. I didn't factor in vacancy so yeah I need to figure that in. The tenants pay utilities but I need to verify that includes the water/sewer and trash.

So far it sounds like it isn't a bad deal, but not necessarily an awesome deal. If I can buy cheaper then maybe that will make it a no brainer. My only concern is the low income housing area, although it's not slummy by any means. I figure with section 8 I'll get paid every month.

I've had good success flipping 2-3 properties a year to supplement my income. I'm ready to start creating some passive income with rental properties. I can buy 2 identical 3 units that are side by side, all 2 bed 1 bath renting for $450 each (section 8). They are currently all rented on 1-year leases, tenants pay utilities.

Total expenses incl. taxes, insurance, grounds maintenance, etc. =
$6560/year 547/mo

Gross Rents = 6 Units Rented $32400/year $2700/mo.

Net = 25840/year 2153/mo (6 Units) $20440/year 1703/mo (5 Units)

Debt Service = 1000/mo (100% financing, 20 year term)

Deferred Maint = 450/mo

= 700/mo cash flow (6 units rented, which is what it is now) 253/mo (5 units rented)

Deal or no deal? Thanks in advance for any wisdom and/or insight!

Also, I mainly need a realtor that understands ss investing so that they understand what is happening when I ask them to list a property for sale that I haven't yet closed on. Most realtors don't get this and will have a problem with it. I get wearisome trying to educate realtors, especially ones I don't know in a city I don't know. That is why I'm looking for a good referral of someone that is already informed.

Out of the couple dozen short sales that I've done every lender has required me to send a listing agreement showing that the property I want to buy is listed for sale. To be honest I've never told them the property is not listed so I don't know if that's a requirement or not. I definitely need a valuation though if you could help me out. That would be much appreciated. PM coming, thanks!

I have a complete SS package almost ready to go. I just need a realtor that can tell me how much it's worth and provide a listing agreement for the bank. I need a realtor that understands the A-B B-C transaction, assuming I can in fact get it low enough to purchase and resell.

I'm just about to get an approval on a SS and the negotiator came back and said the borrower qualifies for HAFA. They sent along some paperwork to fill out and I'm not seeing anything that looks bad on it. Borrower would get 3k in relocation assistance. I know like a year ago HAFA was not good and I had borrowers opt out of it. How about now, am I missing something?

Does anyone know a good realtor there?

I'm just wondering if there's an amount that is too much to charge for a loss mit fee. If the buyer agrees to pay 10-15k for a good deal on a property does anyone think there's an issue with that, either legally, ethically, or in terms of putting it on the HUD on the buyer's side and having the short sale lender approve it? Lastly, if it is an FHA short sale would that affect anything? Thanks

Originally posted by Jon Holdman:

Owner occupied or investment property?

Owner occupied. I have a good buyer with great credit and income. I could go FHA too but I've called everyone under the sun and because of the 20% price increase only one place I found can do it. They will require 30 day seasoning. That's not bad at all and I'll go that route but I'm a little skeptical if this lender will actually get it to closing. I'd love just to find a lender that can do a conventional loan with 10% down, allow for 3% seller's concessions, and let me do a simultaneous close, or even 1-7 day seasoning. Thanks!

Does anyone have a lender that can do a conventional loan with 10% down and no seasoning requirements? From what I'm finding out no PMI companies will insure these loans with less than 80% LTV. I'm hoping someone out there can do it though. Thanks