All Forum Posts by: Tim Herman

@Plato Asadov how much are you putting down. How are you going to pay the first and second mortgage. How are you going to refinance in a year.

@Gualtiero Piccinini your business is to enforce the lease. Haven't paid then give them a notice to pay or quit. You could look up what HUD paid you and deduct from rent and let her know what she owes. If there are late fees then collect those also.

@Abigail Okenge Yes if you refinance a loan as owner occupied you would need to stay there another year as their would be the same documents saying you are owner occupants. You don't want to commit mortgage fraud. I am not a lender so don't know what the requirements are for qualifying for a 5% down. Call a mortgage broker and ask to get prequalified. The other option is to do an FHA loan on the first duplex and then after a year take a 5% down conventional loan. Usually need two years of taxes on rental income to help qualify for a loan.

@Abigail Okenge better strategy would be a 5% conventional down payment. If you do FHA you will have to do a nonowner occupied refi and need to have 25% equity, otherwise you will have sign an agreement that you are owner occupying it for another year. I don't think there is a time frame in the lender documents, but most recommend staying a year and a day.

@Samantha Griffin 7 things to make a real estate contract valid. In writing, both agree to the terms, identify all parties, identify the property, purchase price, consideration(usually money) and signed by all parties. You can write it on a back of an envelope if necessary. The standard real estate contracts in each area have clauses in them that have been litigated. A generic contract will not include them. 

@Carlos Garcia How did you find the only bulletproof house in the world? No vacancy(banks will underwrite at 5%), no repairs my minimum is $50 per unit per month, no capex my minimum is 10% of rents. With that extensive of a renovation your property taxes will go up.  Can't get a cash out refi before 6 months. Unlikely you will see 6.5% loan. Fed is going to raise the prime 1/2-3/4% at the November meeting . Mortgage rates will follow. I checked on non owner occupied rates last week and the lowest was 7.3%. Ran it through the rental manager and it said it would rent at $1650 per month. Might want to tighten up your numbers and rerun it.

@Taylor Cameron Your first deal and you are waiving inspection. I always scope the sewer line if connected to city sewer 10-15k if collapsed or broken. If on a septic I make the seller pump and then get it inspected. Looked at a house where the septic was in a flood plain and would need to be moved. Turned to be too expensive for the seller to bring to code. Any cracks in the foundation also need to be inspected. 

@Simone Silvera you should have used the BRRR calculator. Unlikely that this will be a candidate for HML. Max they will loan will be 75% arv or 375k. Your rehab would have to be under 120k. First time, they may only loan to 65% of arv or require a higher down payment. Do you have cash. You will need 10-25% for down payment. Points on the amount borrowed. closing costs, appraisal, and money to front the contractor until you can make a draw from escrow.

@Anita Morrish what my friends did when renting a mobile home was to see what apartments of the same size rent for. Not everyone wants to live in a trailer. Their reasoning was people looking for apartments would consider renting a trailer.

@Rob Carmody Is this the lenders appraiser or an independent appraisal. Most lenders will not take an appraisal that they haven't ordered. So you may have two appraisal costs to refinance.