All Forum Posts by: Tammy Vitale

I ran into that one a lot.  I have learned that the answer to this is funding with hard money for the purchase.  But be aware that to get a conventional loan after using hard money you may have to "season" the hard money loan for 6 months to a year to get that money back.  Conventional loans made before that time period (after the repairs are made) will only cover the sale amount of the house (not repairs).  Check with your conventional lenders when making your decision and tell them up front what you're planning on doing.  If you can find a local portfolio bank you may have some leeway there.

p.s.  You cannot sell the property for 90 days after you acquire it (no problem for me as I'm buy and hold - but just in case you need to know that)

I bought a HomePath in Fl earlier this year.  It was after the initial phase and I offered asking as I was up against competition (still a good buy) and conventional loan with 25% down.  That beat out a cash offer.  The house needed $18K rehab - about $5K over what I figured.  Seller paid agent but we paid total transfer taxes.  We had to escrow 10% of the offer price when we made the offer.

If you take out a 360K mtg at 20% down you pay 72200; 25% down 90K.  You're at 67K before you close, $92K with closing.  Why go through all that hassle to wind up with something you could probably do straight forward?  Just curious - I've never done anything like this.

I can't tell what the new numbers are compared to the old numbers but would like to know what attracted you to this in the first place.

I agree with Kelly re security deposits.  Also I don't see any electric/gas costs, just water and maintenance.  Are your tenants paying that?  Are you allowing for vacancy utilities?

I became an investor by using a small inheritance to buy a little cottage close to me that needed a complete (COMPLETE) redo.  We didn't plan to rent it - but put it together as a hideaway - that we never hid away in.  To date the best thing about it is that it was a 15 year loan and we borrowed on it to invest in 2 more properties and against the equity in our principle home for 2 other properties.  Again we didn't really plan on being investors - we bought houses to rent to our kids.  When we die they get the house at market rate.  In the meantime they pay us an agreed upon over mtg premium for their rent (still lower than market rent).  Then we got hooked and got 2 more houses.  (5 rentals in all).  I became an investor by doing all the wrong things but I"ve learned as I've gone.  3 of my houses are where my son lives and he is instrumental in bringing them up to rentable and then managing them (and we pay him for that and still make money).  This was never in my financial plan for lots of different reasons, the first being I didn't think we could get funding.  I was wrong.  Wish someone had told me that earlier!  ;) 

I had a similar thread elsewhere and earlier here - someone recommended an ozone cleaner (available on amazon); another Nature's Miracle 3  in one odor destroyer (Pet Store).  I didn't buy the house I had made the query on so I can't advise except to say I do use Nature's Miracle for my own dogs in my own house and love it.

My experience is that becoming an agent is an exercise in money going out the door for a good bit.  If you are short on $$ why become an agent first?  It isn't an easy schooling to pass.  You don't need to be an agent to wholesale, flip or buy a house.  It DOES help to have an agent who is willing to work with you as an investor.  I am an investor who became an agent because I couldn't find one who would work me.  I can't address wholesaling because I've always been a buy (rehab)  and hold.

I own an investment property in PG and 2 in Calvert.  I'm also a r.e. agent.  Let me know if I can help you.

a first time clean with a contract to come back in So Md is $100 (several years back)