All Forum Posts by: Amy Van Ollefen

A lot of people keep giving examples of rehab. This isn't a rehab, from what I was told anyway, whether or not that's the true story is besides the point. If it was a rehab, I wouldn't do the deal. I'm def not comfortable doing a major rehab at this point.

At any rate, I think I'm getting in over my head here. I think it may be a better idea to wait a few months and not try to spread myself so thin and take the risk on hard money anyway. I also think having someone who can help me with the actual value is really key for me since I don't have any experience. If it's really not worth much more than asking, it's not really worth it. 

I think a wiser course of action would be wait a few months (I'm currently saving 1500/mo, find an agent or partner, buy something smaller, turnkey and go with conventional financing. Maybe rexplore the FHA option.

Thanks guys!

Seller said a few cosmetic things they would take care of before closing, but it was remodeled in 2012, new roof in 2008, termite prevention in 2013. He bought it cash, fixed it up, it's rented but he got a divorce and needs to be rid of it. I think the key is going to be finding comps/true value.

Ok well I guess I'm not seeing the point then. If I had money for a 35% down payment I'd just get a conventional loan. That's making the situation worse not better. I have excellent credit, but also only 6 mo at my current job and not a ton of cash in the bank. I really only have about 7-8K available. I thought that was one of the benefits of hard money, it was weighed more heavily on the property vs how much money you have, or job length, credit etc but that doesn't seem to be true from the responses. Not sure why then you'd look at hard money unless you just needed it faster or had to many loans already.

House doesn't need (as far as I'm told) major repairs. Was remodeled in 2012 when the seller bought it, and he's motivated to get rid of it because he just got a divorce. He owns free and clear also. I actually am not entirely sure how to figure the value without having access to the MLS and getting real comps. Zillow and findcompsnow had an estimate of 185K but I know those numbers can be way off. It could be a lot less than even 150K I guess. The last guy was under contract but couldn't get financing, maybe this is part of the reason why, but that's purely speculation. At this rate sounds like I may not be able to either.

I'm currently saving about $1500/mo and have a good steady job, credit is 780. The cash is there, just not immediately, and I'd prob need a bit longer at my current job. I was hoping to be able to take advantage of this deal since the numbers look good even w conservative estimate regarding cash flow (it's fully rented pretty much turnkey w motivated seller). The numbers makes it a good deal (assuming no surprises at inspection) even at what he's asking, though in reality I'm looking for something w instant equity. 

I've read a lot of posts about this, and am still a bit confused. If I am purchasing property that the asking price is $99500 and the appraisal is at least $155K which makes under 65% LTV, if I am getting a hard money loan, do I still need a down payment? If they loan up to 65% wouldn't that mean I could get the loan for $99500 and not have to put a down payment down, and I could just pay closing? The equity is the down payment? Or am I not understanding how this works? Do I need a down payment regardless, but I just can't get a loan for more than $99.5K, and the downpayment would be 5,10 or whatever percent of the 99.5K of the loan?

Bill, I agree, and I thought this was def going to be snatched already, but he had it under contract and it fell through because the guy couldn't get financing. I've got an appointment to go look at it, and now to try and lock down my own financing!  Holy smokes!!

Yes he gave numbers for property taxes, water and insurance which were approx 4-500/mo. I plugged all the numbers into a spreadsheet I got on here and after piti, maintenance etc it cashflows at 500/mo using pretty conservative #s including about 14% for management and 15% maintenance/repairs.

Hi,

I'm looking at a deal for my first rental property. As much as I've tried to research and be prepared, I'm worried there's something I'm going to miss or forget to ask. 

So far: 4 unit and SF sold together because of divorce. Asking $99,500 for both. Looked them up on findcompsnow and it shows $188K, but I am aware these can be off, I've heard as much as 40%. Not sure how to get market value as I know no realtors in the area.

Currently fully rented: ~2400/mo, 1900-2000 after water, taxes, insurance. 4 unit was remodeled when they bought it in 2012, new roof in 2008. Shared laundry in basement. SF has new water heater, sump pump, not sure about roof. Would ask if there are any current repairs needed. 

He mentioned currently zoned for multi-family, should I ask for proof of this? 

Will provide leases, all receipts since owner purchased, water and gas usage.

This sounds promising, I think I'd like to take a look at it. I'm going to call in the morning. Anything else I should find out before hand, or while I'm on site, or ask for documentation on? 

What specific documentation are hard lenders looking for? Should I ask before I see the property if the owner is ok with an inspection and appraisal if it goes to contract, before I go look at it? (It's an out of town property) 

@Account Closed Thanks, I read through that, good stuff! 

@Dave Visaya Hi Dave! Thanks, have definitely been doing  a ton of reading to try and figure out my next move forward! 

@Jerry Kersh That's what I've been trying to do. Figure out other ways to learn that aren't going to cost me $15K. oi. As tempting as it is to feel like I have a structured plan and people helping me... as @Dick Rosen said, I was pretty skeptical of the whole thing.