All Forum Posts by: Sylvia H.
Sylvia H. has started 8 posts and replied 140 times.
Post: Roofing estimates: are my expectations too high?
- Posts 142
- Votes 61
They are ripping you off. Try to get someone just to quote you the labor. I just had a roof done and I paid 260 a square and bought the materials myself. Roofer gave me a list and I ordered directly from the lumbar yard. The reason they don't want to break it down is because they are adding a cost to the materials. Go on Angislist and get more estimates. Don't forget to verify directly with their insurance carrier to make sure the have workmans comp insurance and liability insurance.
The problem with that is you have to owner occupy the second house. Lenders are hip to that and will most likely deny you because they would not believe you are going to live there. You can't just move from one multi to another. The next home would have to be superior to the house you are living in and at least 50 miles away from your current home for an underwriter to approve it. At closing you sign an agreement stating you are going to owner occupy the dwelling. Not worth getting charged with mortgage occupancy fraud. They do check and its a serious charge if you get caught.
Post: Can I turn a hard money loan into a traditional loan?
- Posts 142
- Votes 61
Quote from @Leanne Sorg:
I am rehabbing and flipping a property in Chicago 3br/3ba. I took out a hard money loan on the project but unfortunately the house needs alot more work than I originally intended and I don't think I'll make a reasonable profit by selling it. I'm not happy with some of the contractors work. Can I convert my hard money loan into a traditional loan with a mortgage company so I can try to turn it into a rental instead? Do most hard company officers frown upon this?
Post: What is DSCR Lender Really Looking For On My Bank Statements?
- Posts 142
- Votes 61
Quote from @Burt L.:
It seems the thread has taken a turn that I don't understand and didn't intend.
When I say that the cash I get to take out at the time of refi covers the required 6 months reserves a couple of times over - 6 mos reserves is approx $30K and I can easily take cash out $100K on appraised ARV value of $1.0 M on total rehab loan/purchase loan of $540K at 70% LTV. All the lenders I have spoken to so far have said I can use the cash out for the 6 months reserves. I am more asking about having little other funds left and the same DSCR lenders to date have all wanted to have bank statements despite being a property based loan with a 705 FICO mid-score; good, not great.
That is more my question- am I DOA because of little other cash on hand and what else are they seeking to find on the bank statements? I really thought a lack of financial documents is why people use DSCR loans in the first place.
Hi there. The DSCR loan (Debt Service Coverage Ratio) is a loan where the lender does not verify your income in the traditional way or require tax returns. This simplifies the process for many investors and commercial buyers. The bank statement has to show that you are able to cover your monthly debt. That is why they want to look at your bank statements. There is a formula they use for this. It's basically your net operating income divided by your debt service. You need to show a lender that you have enough cashflow each month to cover your debts. If the lender is asking that you have 6 months reserves they do not want the cash out refinance to part of that because you should be able to show the lender that you have enough money in the bank should an emergency arise to cover 6 months of mortgage payments. That is what is expected on a day to day basis, not after you cash out from a refinance. They expect you to always have that money as a matter of course.
Quote from @Kerry Pangan:
I just purchased my 1st duplex in January. Renovated and tenants area now paying 100% off the mortgage.
What is the best way to acquire a 2nd rental property? I've already used my FHA so I'm thinking conventional 20% down?
Which route do I go to fund it? I’m starting to work more hours at my job to save 40k-50k. It’s not going to be easy but if there’s other routes to achieve capital too that’s easier I’m willing to hear it.
Post: Tenant defaulting rent payment
- Posts 142
- Votes 61
Quote from @Suresh Ram:
My tenant has been missing timely rent payment, explaining her financial hardships. In an effort to change the tenant I said i need to sell the property once her current lease ends by Dec 31st. She sent a notice asking to deduct the rent from security deposit to which i responded over an email asking to pay rent and the deposit would be refunded after their departure upon assessing the property for damage if any made by them. She has not responded yet. I'm worried that the tenant is going to default on rent payment and that she would not vacate the property. I would like a consultation to explore my options legally. What would you recommend in this situation?
Post: Should i Start an LLC for note investing in real estate flips?
- Posts 142
- Votes 61
Quote from @Joshua Brito:
I have just started Note Investing with a local house flipper/Investor and i plan to continue doing so. My question is should i create my own LLC for this, and how complicated does it make it to pay my self from the LLC especially if i want to take out all the cash i originally invested out of the LLC?
Or would it be easier to continue doing it without one.
Thanks in Advance
It's a lovely home and it doesn't look like it needs much work. Make sure the roof and mechanicals are all working as those items are costly. The HELOC isn't a good idea with rates on the rise. If you can fund the repairs without breaking the bank I would do that. It's desirable because most would rather rent a duplex than a stacked multi family so the rent is worth more than a standard one bedroom flat. People would pay a bit more to have their own entrance and not have anyone living upstairs from them. Best of luck
Quote from @Heath Watson:
Duplex available for 100k.it’s a 2 bed 2 bath 1800sq ft so each side is one bed one bath. One side rented for 550 but I believe they can definitely be raised to 650-700. the other side needs renovations. Arv I think is around 175. Probably needs 10-15k in work. I have the money to put the 20% down and I was planning on opening llc and using line of credit with 0% interest to fund the renovations and keep as rental. Or I could fund with own money. Does it sound like a decent enough deal to try and make work? This is my first real estate deal other than buying my own home. Is putting 20% and spending 20k on a deal like this sound worth it? I’m trying to think about the future so I know I won’t see investment back right away.
Post: Foreclosure purchase. How to evict current tenant?
- Posts 142
- Votes 61
Quote from @Matt James:
Hey all, I have just purchased a 4 units multifamily property through county auction. Just made the payment but have not received the certification of title yet (taking 3-4 weeks). I am thinking the tear it down to sell the land. The current property is in bad physical condition. Please advise what is the correct procedure to evict the current tenants. They signed contract with the original owner but I have no way to contact the original owner. BTW I am in Florida.
Thank you!