All Forum Posts by: Tia Rubadeau

Looking for any suggestions, feedback, cautions regarding this potential deal:

Very motivated seller, currently living out of state with health issues and is tired of trying to sell (we've been watching it for about 6 mos and had originally talked to him when he was at 80k)

Originally listed at 80k, reduced to 65k. Existing mortgage is 55k. Conservative ARV approximately 90k.

Needs some minor cosmetic work to be rent ready (clean, paint, yardwork, fix front porch that HO removed and spruce up the kitchen and bath a little), we have experience in this area and could do it ourselves in 2-3 weeks.  Rent estimate around 1100/mo.

HO is willing to let us continue to make payments on mortgage, put a tenant in and pay off within 12 months with no down.  We do have money in reserve for unexpecteds (but not 65k). We've never done a creative financing deal like this so I'm wondering what I'm missing, what is our risk (seems minimal other than materials/labor...), how do I draft a proposal of what we are trying to do to take to our attorney, etc?

Thank you!!

@Logan HicksI understand that part of it, however there are many positions in public service that qualify for loan forgiveness which is a benefit to a job that can help offset a lower salary than what one would earn in the private sector. I'm interested in how the new guidelines will impact those who will never be on a standard repayment plan. It appears as though it would prohibit those in education or public service who are pursuing loan forgiveness from home ownership for a decade after graduation. Thankfully I'm at the tail end of this but it seems as though it will have a lot of repercussions for those entering those fields and prohibit them from qualifying for mortgages. 

@Josh Koett she is probably already doing some form of an income based repayment plan already as a standard plan would pay the debt off in ten years. If she is in education or public service there may be debt forgiveness options available to her but it would depend on her particular field of employment and the specifics of her debt (when it originated, number of qualifying payments made, etc). Her loan servicer could provide her with more info on the specifics of that. Best of luck!

@Clay Manship I believe they went into effect mid September 

They seem rather unfriendly to those with student loan debt (especially those of us in public service eligible for loan forgiveness). Basically I think that you used to be able to qualify based on your monthly payment amount, now they are looking at total payment on a standard repayment plan regardless of whether you will ever actually be on a standard repayment plan. I've got a few years left before I'm eligible for loan forgiveness and these new requirements came into effect while in underwriting for cash out refi. My bank does not seem to be very educated on the new regs and so now my application is in limbo.

Can anyone shed some light on the new lending regulations surrounding student loan debt or direct me to where I can read the new requirements?

My burning question is if my cash out refi app was already in the works can I still qualify under the old regs? 

Thanks!

Bradford Myatt I had a couple potential locations owned by same seller, hoping to work out at least one property but contingent upon review by zoning board.

Has anyone converted a motel to storage units? Was interested in converting them to studio apartments but the city is reluctant to have studios due to the type of tenant they sometimes attract (going to pursue a pitch as student housing as well...). They are receptive to the idea of storage units and it seems like a relatively quick and easy project compared to putting apartments in. There is potential for 20+ large units and the ability to breakdown into smaller units if the demand was there. There is not much competition in town. I'm in the early stages of researching this project so any feedback or experienced storage unit folks out there who are able to offer some insight would be greatly appreciated! Thanks!

Thanks for the replies everyone, @ feature doesn't seem to be working properly. I believe I have found a small local bank who will work with me with the option of a cash out refi or rate and term refi and home equity line. Great suggestion on stating rate and term when inquiring about refi as it did change the response. Delayed financing didn't apply in this case because it was only half cash purchase, needed all cash to go this route. Anything Fannie or Freddie (most banks) required 6 month seasoning for cash out, however some banks were willing to do rate and term refi immediately. Some banks also wanted 6 month seasoning for HELOC even based off purchase price. Lots of phone calls, but I think I found the right one!

Original Thread:

I recently closed on a property (will be my primary residence) using half cash half private money. Purchased the house for 30k under assessed value and some renovations underway as well, so already have substantial equity in the property. I've contacted a few lenders in my area (Syracuse, NY), but they all require 6 month seasoning period. Are there alternatives to waiting 6 months to refinance? Thanks!