All Forum Posts by: Timothy Carey

I’ve noticed that a common issue with many of the older homes I see is that the floors seem to be wavey and uneven. I assume it’s largely due in part to the foundation settling. I would get an inspection prior to buying, but is this a red flag or a manageable issue? 

Thanks in advance for your input! 

Love the responses! I have done alright so far with a couple properties not netting the 1% rule but wasn’t sure if I was overlooking future expenses or something else I could have been missing. Thank you!

The 1% rule; the monthly rent should be equivalent to 1% or higher of the purchase price of a property. 

My question is this; is the 1% rule possible in this high market? I find that with 20% down I can get a property to cash flow but still fall shy of the 1% rule. 

Any thoughts or advice is appreciated! 

Tim

When running the numbers on a an investment property the interest rate is obviously a factor as to how well the property will cash flow. If I house hack (which I have) I can qualify for a residential loan with a lower interest rate (say 2.8% today). However on a commercial loan the rates will be closer to 5%. Here’s my question;

If I make an offer contingent solely upon financing and the offer is accepted I am now liable to pay the earnest money deposit.  Say the offer gets accepting and the bank offers me financing at an unexpectedly high rate (say 6.5%). Now I am on the hook since the financing was approved, but given the high interest rate the cash flow may be far lower making the deal not worth doing. Is there any way to get exact figures on interest rates prior to approval?