All Forum Posts by: Matt Thielke

@Bill S. Thanks for the response! I don't have a preference about fixing the door or buying a new one - I just want the issue fixed. What I don't want is to get a new door and once they install it have the same problem. In winter it's really noticeable, and if I was renting it I would contact the landlord to fix it so I'm trying to fix it now before a tenant moves in.

I've tried putting weather stripping in and it helps but it's still leaky. Last winger (Dec 2015-Mar 2016) when it was colder than this winter it was very noticeable. I'm not sure if part of the issue caused by my condo being on the ground floor and with the weather changes it causes the door jamb to move.

Let me know if you know anyone that could take a look at it and fix it. Thanks!

Hi Everyone!

I posted this in the Real Estate Professionals - Contractors section and I thought I'd try re-posting in the Lakewood forum:

I’m looking for recommendations for a repairman/handyman in Lakewood/Littleton (Denver, Englewood, Golden, Wheat Ridge, 80227, 80226, 80235, 80123, 80128, 80120, 80127). I’m planning on converting my condo, which is currently my primary residence, into a rental property in the next several months but I’d like to get my front door fixed.

Right now the door doesn’t have a good seal with the door jamb when closed. When the door is closed you can feel the cold air coming into the condo (which is really fun in winter in Colorado! lol). At night, when the door is closed if you’re standing outside the front door you can see through the cracks the lights from the living room. Also, it looks like the front door threshold is back about ½” from the outside door jamb (horizontal gap?) so that may be part of the issue. Does anyone know of or have a good repairman/handyman that they can recumbent to me who could fix this for me? Thanks in advance for the help!

Matt

@Matt M. Thanks for the reply! I just checked out Thumbtack and it's really easy to post your job! Have you used them before? It sounds like a good idea my only concern is that I won't get a quality handyman to respond to my ad. I'll try it and hopefully I can get this issue fixed soon!

Regarding your question about replacing the door: I'd like to get someone in to inspect the door and see if they can fix it without buying a new door but I'm not opposed to buying a new door. I just don't want to buy a new door and still have the same air leak/seal problem that I'm having now.

Hi Everyone!

I’m looking for recommendations for a repairman/handyman in Lakewood/Littleton (Denver, Englewood, Golden, Wheat Ridge, 80227, 80226, 80235, 80123, 80128, 80120, 80127). I’m planning on converting my condo, which is currently my primary residence, into a rental property in the next several months but I’d like to get my front door fixed.

Right now the door doesn’t have a good seal with the door jamb when closed. When the door is closed you can feel the cold air coming into the condo (which is really fun in winter in Colorado! lol). At night, when the door is closed if you’re standing outside the front door you can see through the cracks the lights from the living room. Also, it looks like the front door threshold is back about ½” from the outside door jamb (horizontal gap?) so that may be part of the issue. Does anyone know of or have a good repairman/handyman that they can recumbent to me who could fix this for me? Thanks in advance for the help!

Matt

Hi everyone, I just wanted to update everyone on my situation. Me and my wife sat down and ran the numbers on renting our condo vs selling it and paying off my student loans. When we looked at it the best option for us is to sell our condo and use the proceeds to pay off my student loans (which are pretty high) and then buy another property and then house hack that property.

@Sam LLoyd, when we start looking at new properties I'll make sure we're looking at duplexes and for the non-multi family properties we look at I'll also look to see how it would work as a rental too since I'd like to house hack this property.

@Micki M., thanks for the advice on lenders. I've worked with 1 or 2 in the past and they were helpful but only had limited experience in RE investing. If you know of any lenders that you think would be helpful for my situation please pass their information to me, I'd really appreciate it!

Thanks again everyone for the help and advice!

-Matt

Thanks so much for the advice @Jared Bouzek and @Sam LLoyd I really appreciate the help!! If I was to do a cash out refi I would only go up to 80% LTV and not any higher because I don't want to pay PMI.

Sam, the main reason why I want to keep the condo is to rent it out so that I can start to have some passive income and have a 2nd income source. Denver is a pretty expensive market right now and I bought my condo at a really good price so my PITI is pretty low which makes renting it even more appealing. The only other place that I can think of to put my money is to sell my condo buy a new home and pay down my student loan debt. Doing that would decrease my monthly expenses and also improve my DTI. I would be open to getting a duplex but there's not a lot of them in Denver and I don't think it'd be a great fit for my family. I think that house hacking is the best strategy for me right now. The next property that I buy I'll make sure it makes sense as both a rental and as my primary residence.

Thanks for the help everyone!!

Thanks so much for the response @Jared Bouzek!!! I'll look into the HomeReady program. I'm looking to put down about $15K.

Do you think doing a cash out refi on my current condo would be a good idea? I know I'd have to live in the property for 1 more year, which is fine with me, but then I'd have an extra $25K-$35K for the down payment on the 2nd property (a total of about $40K-$50K). That would reduce the PMI on the 2nd property and I'd still be cash flow positive on my condo when I rent it out because my condo PITI would only go up about $50/month. Or should I just do a normal rate refi to save about $100/month or not refi at all?

@Micki M. Once I'm ready to start looking at new properties I'll reach out to you for lender references. Thanks!

Matt

Thanks for the reply @Dylan Doone I know that my complex allows for renting, but I will defiantly get the details on how to do it and what information they need.

For my current mortgage on my condo, I did a conventional loan (not an FHA loan) and put 10% down and paid PMI for about 2 years and then the value of my condo increased dramatically (it's a hot housing market here in Denver!) and I had a home appraisal and was able to have the PMI removed. I'm currently at a 70% LTV based on the November 2015 appraisal. When I buy the 2nd property I plan on using a conventional loan but again putting less than 20% down.

One of the mortgage lenders I've talked with said that they would count 75% of the rental income from my condo and compare that to my PITI. So if I rent my condo for $1,800/month 75% of that would be $1,350 which is more than my PITI (includes HOA) of $1,200/month so it would most likely be a wash when I apply for a loan for the 2nd property. I'm I correct in thinking that? If the lender doesn't take the rental income into account but does take the PITI into account on my DTI I wouldn't qualify for a 2nd home, unfortunately I couldn't float 2 mortgage payments (I still have a fair amount of student loan debt). But if they do take the rental income into account I would be more than fine.

I was thinking about doing a REFI or even a cash our REFI. If I do a cash out I know I can pull out at least $24K and be at 80% LTV. Then I could live in my condo for 1 more year or so and next summer buy a new property and then rent out my condo. Using the cash from the REFI I would have a lower LTV on the 2nd property than if I just used the cash I currently have. Does that sound too risky or is that a good idea? Thanks again for the help!!

Hi,

I own a condo that I’d like to rent out. I’d like to buy a 2nd property and use that as my primary residence and then rent out my condo. When I apply with a bank to get qualified for the 2nd property I know I’ll need a signed rental lease agreement on my condo but do I also need to have experience renting out my condo? I’ve heard some people say that you need to show the bank at least 1 year of rental history before you can qualify for a loan for a 2nd property, but I’ve also heard that you don’t need that rental history. Can anyone help clarify this for me?

If I do need to rent my condo for 1 year to show rental history is my best option then to move into a cheap apartment for a year while I rent out my condo and then buy my 2nd property? I'd like to get into RE investing but I don't have the 20% down payment needed for investment properties so I think my best bet is to "House Hack", buy the properties as my primary residence then rent them after I live there for a couple of years. I'd like to do this strategy 1-2 more times if everything works out well. Notes about my condo: My total PITI & HOA payment is $1,200/month and I can rent my condo for $1,800/month, for a new profit of $600/month.

Thanks for the help!

Matt

Thanks for the reply @Anson Young, I'll be there tonight!

-Matt