All Forum Posts by: Shaun Weekes

Hello BP community, 

Here is my scenario: 

1. I purchase a condo as a "second home" with a 10% downpayment

2. live in it for 2 weeks out of the year (as stated by law where I live)

3. Then rent it as a STR for the remainder of the year and turn a solid profit of 10k.

When I apply for a new loan for my next condo, does the income from the first condo (10k stated above) factor in to my Debt to income ratio? Or, because I purchased it as a "second home" and not an investment property, are those profits, on paper, null and void? 

Thanks! 

Hello everyone,

I'm looking for a RE agent who is well versed in the STR market in the local Fresno area. What would be your top recommendation? Thanks

thank you for responding 

I want to purchase a land and build SFH subdivision after 2yrs based on the market trend.
 

Hi Everyone-

1.Do you have any suggestions on commercial loans to purchase a land . I am looking for longer amortization period. 

2.I will be purchasing a land and leave it for a yr or 2 . So it’s not like fix and flip .so the hard money lender a good idea?   

 

@Shaun Weekes

With all the units you own in Indiana have you every come across something like this?

I'm converting my garage into a Junior ADU and almost done. The main house is a 3 bed 2.5 bath and the JADU is 1 bed 1 bath. The total SF is about 2,000 with the JADU. We also have a lot of solar on the house. The house is in Van Nuys.

The realtor we are looking to use gave us comps of houses with 4 beds and 4 baths and similar square footage. When I asked about comps of houses with ADUs and solar they said it doesn't affect the house pricing that much and this is how they have been doing their house comps for houses with ADUs and have sold 150 of them in the last 2 years. Also that solar is not as big a factor in the sale of the house.

They ended up giving me what I thought was a pretty low comp at 950k which I think the house could sell at without the solar and ADU. I know they want to set expectations and not list too high but I also don't want to list too low as any higher offer or bidding war is not going to 200k higher which what I think it should sell at.

The JADU is 400 SF and could fetch $2,200 rent which would certainly help with the mortgage payments and the solar is enough to cover the house, JADU and 2 Teslas being driven 40 miles a day. This seems like good selling points to me and would appraise quite well.

I'd like to get thoughts from anyone who has had experience with similar houses in LA recently. Thanks in advance!

Hi all,

I have a mortgage on a property that we are renovating.  The property is on a lake and it has 3 units.  Unit 1 is rented,  unit 2 is vacant.  It is pretty run down and when the last tenant left we didn't re-rent because we are considering either renovating it or knocking it down.  The 3rd and main unit was completely knocked down and is being rebuilt, the kitchen is going in today.  I am trying to get a handle on when I can refi and what the appraiser will be looking to determine if the renovation is done.  The main unit will be used as a 2nd home for my family and won't be rented out.  I would like to refi to take my investment out of it.  We purchased for $625,000 2 years ago.  Once unit 3 is done I expect the property will be worth between 1.4m - 1.6m.  I have never refi'd after building ( I have never built before either).  I am not sure about things like the driveway, the lawn etc.  There's a ton of landscaping to be done.  Also, I'm sure we will have some delays on minor pieces like a vanity of fixtures for a bathroom, will that prevent a refi?  I'm using hard money at 13% so I want to be out of that as quickly as I can so I would like to get the refi done the 1st day possible.  Any advice or experiences you can shared would be greatly appreciated.

Thanks

Chris

This question is for the lenders out there!

I am planning my second house hack and would like to get pre-approved so I can start getting serious about the deals I am analyzing. My last house hack allowed me to save enough money to leave my day job and start my real estate bookkeeping business, it's been extremely rewarding! 

I know when someone is self-employed, lenders like to see 2 years of income history from that activity on a tax return. However, my company is taxed as a S-Corporation and I pay myself a consistent W-2 wage. Would I be able to use that income for getting a conventional loan approved even though it has not been 2 years?

Hi all,

I am having some issues going through a conventional finance of a condo I am buying here in Miami. This is the second lender that I have been through that has run into problems trying to close on this condo.

The lender is asking to be named as an additional insured on the HOA Master Policy. This is not the HO6 policy for my individual unit but the HOA insurance policy itself. The HOA is refusing as they say this is highly unusual and has never been required by a lender before with other owners who have purchased in this building with financing.

The mortgage broker insists that this is a standard request in order to be in compliance with Fannie Mae guidelines.

Can anyone or any lender give me any more clarity as to what exactly is going on? I can't imagine a large HOA with hundreds of units having to update their master insurance policy to include or remove lenders every time someone with financing bought or sold a unit.

Any help or clarification on this would be really appreciated.

Thanks!  

Hey BP,

I received an appraisal back below purchase price and realized appraiser used initial offer and not the accepted counter offer on the appraisal report. Now there is an appraisal gap of 10k. I spoke to lender and he plans to speak to appraiser. Realtor (dual agent) said to ask the lender to speak to appraiser. What would you do?

Thanks in advance,

Tyler