All Forum Posts by: Wendy S.

Good day everyone.

So recently bought first rental property, sellers wouldn't budge on their price much even though I added supporting Inspection report.

Property was listed as a 4/4 ranch, however, the Appraiser adjusted the appraisal saying it was a non permitted garage conversion hence a 3/3. Property still appraised in excess of PP, so I figured ok I'll end up buying at full price with 2 of the repairs issue I had wanted them to remedy.

In addition to the illegal/unpermitted conversion there is an enclosed 'sunroom' with enough space for 1 bedroom self contained unit (more on that later). If I rented to a single family for about $1,350 with PITI of $634 it would still cash flow. This however is not my model as I'm a per room model but in this case having done the math with only 3 bedrooms it would make sense to just rent to 1 family, get that out the way then deal with the non-permitted as well as other side of house. Btw, house is zoned SFh and has 2 separate driveways on two different roads with a huge yard space all around.

Decided to do some remodel and make the 3/3 nice. Work just got underway and master bedroom and bath shows that there is leak which was previously patched going to foundation. So the whole floor is rotted out.

My thoughts are 'when life gives u lemon u make lemonade.' So I'm thinking with all the extra costs I'm looking at, why not fix correctly and convert master bathroom to another bedroom thus having a 4/2 situation vs 3/3. Bathroom already had 2 entrances one from master bedroom and one going to living room. So just a window and closet would be needed to make a bedroom. Then depending on the outcome with the unpermitted I could have that as well as another Bedroom with bath on the other side of house later. A 4/2 now makes for better cashflow renting by room as well.

Curious to know your thoughts on the above as well as SPD had no repairs done prior or any issues but contractor is saying based on the patchwork done all around the perimeter of that side of the house they should have been aware. Any recourse here? I'm also trying to see if insurance will cover for structural damage?

Hi, anyone know which credit unions or banks offering Interest only LOCs in Georgia?

@ Daniel Kong. Not sure you missed where I said I used another lender and closed at 3.625% with 20% down. Paid $120 to keep the rate after I reduced the loan from $100K to $96,000.

@Matthew Ringer

Thanks

@Matthew Ringer

I closed yesterday at 3.625% with 20% down.

@Rashaun Forrest

Thanks

@Rashaun Forrest

I want to say a very big thank you. Closed on my loan today with a 30 year conventional loan at 3.625%. Your recommendation was spot on and our Loan officer was amazing. The best thing about it I was able to close in my name only, no coapplicant needed..... Now on to remodeling.

Good day everyone.

I have read through the forums and posts as well as the Georgia Handbook(60 days notice by landlord) but I am still unclear with per room renting furnished with fixed term, not month to month Agreements in place.

Background

Landlord resides at property. 4 tenants each renting a furnished bedroom in a shared housing with all utilities paid to include internet and Security system. . Rental Agreement is for 6 month period expiring Sept 8, 19 and Oct 1. Rents are due prior to the 1st day of the month. The first month's rent was prorated.

Notice for Landlord /tenant is 30 days.

The intention was to give them notice now, that effective Oct 1, rents will be increasing to $$ and have them state their intention to remain or leave within 7 days of the notice. As you can see, based on their expiration dates there is some gray area.

Hence my question is can anyone suggest a way to do this?

Was thinking of an 8% increase for the new rents but perhaps offering 6.5% increase if they stayed. Rentals in the area varies. House is in a good HOA community, recently upgraded, stainless steel appliances, larger bathtubs with price points in the $200,000+range.

Also moving forward how would you structure the Rental period, seeing that rents should be paid prior to the last day of the preceding month or at least by the 1st of the month if someone shows up wanting to rent during the month and still satisy the 6 month period?

Please provide examples in your response if possible.

BTW, the increase is to offset high utilities which are close to $200 more than anticipated.

Thanks for taking the time to read through my post!

@Caroline Gerardo

Middle Fico 776, 20% down, pp was $200K but deal fell through. Btw, I was coapplying because my DTI is too high, would only qualify me for PITI of around $548.

Now looking at pp $125K, and initial disclosure docs says 5.75. However, I'm thinking 5.75 is crazy so now looking to see what else is out there especially as I really don't want to coapply, then having to spend thousands to refinance six months later to remove coapplicant from title.

Lender does not factor in new/potential rental income from investment property under consideration.

@Julee Felsman. Thank you so much Julee as my situation is almost similar to what your latter post described.

Yes, this house also flows or have the potential to flow better with 3-levels.

My current residence is a split level and a live in flip which in the end has turned out well. The thing is however, I toyed with the idea of adding a kitchen in the basement during the remodel and decided not to in the end. Instead opting for a bedroom, with sitting area of almost 300 sqft. Wasn't thinking of moving at the time.

So while my roommates lived above me I was happy to come down to my own space and only needing to go up to use the kitchen, enter or leave the house or have social encounters with them. I could also enter my space via the garage provided it wasn't too late or early so as not to disturb the household with older garage doors.

Fast forward, following a m/v accident with physical therapy and temporarily moving out to stay at nearby ground floor level house with family I thought I was ok and returned home. I now find going up and down the stairs is not as easy on my injured knee. So along comes this house that could be easily converted wherein I don't have to see my new possible roommates and I don't have to go to the other levels unless I choose to as my new home would accommodate all my needs including kitchen, living, laundry, entry and exit and even parking.

Not to mention assuage my Covid-19 concerns.

P. S. Sorry for the long-winded post.