All Forum Posts by: Valerie S.

Hi everyone, I have super newbie questions! If you're borrowing private money for a down payment, what's the best way to pay them back? Do you add it on as an extra monthly cost or is there a better way?

0 Votes

Quote from @Richard F.:

Aloha,

Don't rent to the first person that waves cash in your face. Proper screening of every adult occupant is the single most important step you need to take, after proper preparation OF the rental unit. Determine your standards, then stick to them. It is critical to hold all applicants to the same standard...do not "give in" because they "seem like nice people".

Credit scores alone tell you very little...you need to see what is contributing to that score, and you need to check for Bad Habits in all areas of their life...Court Records, Employment history, prior housing history, online presence, and anything else available. Bad Habits in any of these areas are likely to carry over in how they perform as Tenants.

Thanks so much for that great input! Do you use any specific services to screen your tenants?

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Hello everyone! Newbie here and preparing myself the best I can for my first property. Curious how you pay the mortgage and eviction expenses if you have a problem tenant? If there ever was a need to spend money for eviction, would you use money from the typical expenses budgeted in to rent anyways?

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Hey everyone, it seems like it’s difficult to get the full mortgage covered + cashflow while living in the other half of a multi family. With the interest rates right now it’s even difficult to just get the full mortgage covered.

Have any of you ever paid a portion your mortgage while living in your house hack? I would only do this if the numbers showed that I would cashflow after moving out. Is this a viable strategy?

5 Votes

Hello all! I am new to real estate investing so have many newbie questions.

Let's say tax returns aren't great, but doing a seller financing deal and making perfect monthly payments during the balloon period. Is this good enough to have a high probability of getting refinanced?

How would you ensure you can likely get refinanced before the balloon period ends? Would you suggest asking lenders a year or so earlier to start making sure?

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Quote from @Tom S.:

@Valerie S. I find there are two parts of it: the numbers side, and everything is negotiable. I typically start with 10% down, a market interest rate amortized over 30 years, and a 7 year balloon, and go from there. I definitely prefer not to pay more than the appraised value (you should pay for an appraisal).

The other part is the property: issues with it, rehab needed, tenants paying? You should talk to the tenants as part of the due diligence process. You want to make sure the owner isn't using seller financing to dump a crappy property onto a newbie. Don't let their problems become your problems.

Hope that helps!

Thanks Tom! Definitely correct me if I'm wrong -- I've read that there are sometimes issues when dealing with the refinancing after the balloon period. I guess it's possible the numbers can jump and the buyer can lose rather than gain if they're not relying on appreciation within that time? Is this correct?

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Hi everyone, I'm new to real estate investing. I'm looking in to deals that offer seller financing and curious what your top questions would be for the seller when making the deal?

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All Forum Posts by: Valerie S.

Valerie S. has started 5 posts and replied 7 times.

Post: If you borrow for down payment how do you pay it back?

Post: Paying mortgage when tenant is late on rent?

Post: Paying mortgage when tenant is late on rent?

Post: Is it normal to pay part of the mortgage?

Post: Probability of getting refinanced when doing seller financing?

Post: Seller Financing: what to ask the seller?

Post: Seller Financing: what to ask the seller?