All Forum Posts by: Tim Hoskins

Kinda seems like no matter how I do it I am gonna get reamed when I go to refinance or sell.

I have also been doing a lot of research about finding funding for other properties which seems to be impossible. I don't have money to put down on a property. It seems impossible to find hard money lenders anywhere. Who wants to take a chance on me. I know now one. I don't want to spend 250 a year for REIA fees, when I don't really think that will help me. I know the money is an investment, but I really want to do this with as little money up front as possible. I see wholesaling as a possibility, but how do you get a contract on home without putting money on it before you sell the contract to another investor?

Everyone keeps giving advice but it seems so overwhelming when it comes to the money aspect. I feel like well if you don't have about 50,000 in the bank for reno, down payment and fees, not to mention what you'll find once you start reno (I kow this happens, it already happened to me once with my current home) you are pretty much not going to succeed.

So how did everyone start. I am hoping to generate some extra income from renting my current home, but then I have to worry about qualifying for another loan so I have a place to live before I rent this home, so I can invest in other properties. I am not done with reno and the wife is not ready to move. Is there anything I can do to start out now. I have been trying to make contacts in my area and making colleagues, but everyone needs me to have some money for them before they even give me the time of day.

Do you see the never ending circle that's created here?

I am a graphic designer by trade, so marketing is easy for me, but no money means no money.

I also can do basic handy work and remodeling. I have many skills. But still who cares, I have no money.

I have had the mortgage since last April. So based on Simons response my PMI wuld be removed after 20% equity is reached.

The home is valued at 150000. We owe 125000 on it.

Mortgage payment with interest, home insurance, taxes, and mortgage insurance is 915 a month. Plus 50 a month for the home warranty which comes to 965 a month total. I am not including utilities, trash, and lawn care as they will be paid by the renter.

Typical rent for a home in my area like mine is 1500 a month. I have also looked at some of the homes that charge this and ours is much nicer. The area is a well established neighborhood. My neighbor who is a property owner and renter got over 60 inquires about the house he rented right next door to us. So I have a pretty basis to go off of. Also our home has a much better layout and space than what he rented. So I hope I can get around 1500 a month for it.

Sorry I meant property taxes are 6% on investment properties.

Do you have any idea why I wouldn't qualify for an FHA loan in a certain county versus another?

That happened to us when we bought this house. We had to move to another county to afford the house we wanted. Now we are stuck in area we don't like. We love the house but want something in the area we want to be in. Our realtor told us we didn't qualify for an FHA loan in our old county when we were looking for homes. Any idea? I think she mentioned something about our income being too high.

I have done a lot of research about this, and what I know isn't a lot.

I know I can't have more than one FHA loan at a time and I have to live in the FHA loaned home. I currently have an FHA loan on my home. My interest rate is fixed at 4.25%. Could I transfer the mortgage to a different type of loan and still get this interest rate?

I know the interest rate for an investment property is normally 6%. Does this affect my interest and mortgage interest as well?

Can I use the equity in my current home as a down payment or collateral for another property?

Any other advice would be appreciated as I am very new and renting out my current home will be my first real estate deal.

Thanks

Doug,

The real anxiety I have is the money part. I don't really have a lot but I did get a good deal on my current home which I would like to turn into a rental and buy another home. I think this is the best way for me to get my feet wet so to speak. I would love to have a little extra income. Problem is I am still remodeling and my wife won't be ready to move anytime soon, and I am not about to make her, I couldn't if I wanted to anyways.

I know there are things like wholesaling but I don't really understand that whole process. I don't really know any other investors to help. I am pretty handy and anything I can't do to fix up a house, I could either find the answer and do it myself pretty quickly or would be willing to contract out. That's where I am lost I could do work but I don't have capitol.

Any advice or tips would be appreciated.

Tim

Ned,

Thanks for the tip.

Tim

Just joined and looking for help with the local Charleston, SC market mainly around North Charleston and Summerville. Also any mentoring from someone in the area would be great. I am new and a little anxious about the whole idea, but I have been thinking about making my home a rental property for some time. I live in the Archdale neighborhood and it seems a good place to have a rental property based on my neighbors results.

Hey Sam,

I live in Charleston too and I just joined. I know this site is all about networking and helping each other. Maybe we could bounce ideas off each other.

Tim