All Forum Posts by: Wendy S.

Good day fellow Bpers, I need your help.

April 2019, my daughter asked me to guarantor an apt for her senior college year in Fayetteville, Arkansas. After asking her to show me the cost savings of doing so I decided ok.

Apt was being offered for $499 deal for 12 months. No payment due until prior to move in Aug 2019.

I then asked my daughter if they had a 10 month contract. They did, but this attracted a $25 monthly fee to facilitate. We agreed this would be fine.

Fast forward to now Aug 2019. She got an invoice for:-

$590 monthly (not $499 deal rate as agreed)

$25 fee for 10 month rental

So $615 monthly recurring rent

Spoke with their office and was told this is the policy as the deal was only offered for the 12 month period. My daughter again called them, after which they pretty much told her the person initially who sent us documents and spoke to us made an error and should have pointed out that the 10 month lease would attract the regular rental rate.

I feel strongly they should take some responsibility and meet us halfway especially as they have also said they can't revert back to the $499/mth for 12 months as the special has gone.

Bear in mind this 10 month would also be from Aug 19, 2019 to May 31, 2020. Meaning we are being charged for the full month of August.

School starts Aug 26.

Am I wrong for feeling taken advantage of? Yes I went through the initial agreement but after reviewing the lease itself and clarifying a few points I deferred to my daughter as ultimately it's her lease.

I would appreciate some constructive criticisms and points for discussion. Tomorrow I am calling again to hopefully speak with someone in authority.

Price difference

$499 x 12 =$5, 988 vs $615 x 10 = 6,150

So while it's only $162 it's the principle I have an issue with.

Also should we pay full rent for August?

Sorry for the long post, just asking for future college costs if any.

@David Wright, @Raymond J. Rodrigues, @Nicholas Covington

Update

I have gotten a conventional preapproval for 7.2% with 20% down-payment.

@Chris Mason

Now I know why you never responded, seems I didn't tag u right. Lol.

I have used Cozy on and off and found it useful. One of the benefits I liked was it helped tenants who are trying to rebuild their credit as they can have their payment history reported.

This has become a Cozy experience forum, but I do hope @ Carolyn was able to get her matter resolved.

So for a small investor starting out, what other affordable rent collection systems are out there that benefits both Landlords and tenants?

@Raymond J. Rodrigues

SunTrust had a Heloc for 4.24 introductory 12 month then 5.25 to 6.47 thereafter with a closing time of about 30 to 45 days. 

Delta credit union had similar with 30 days to close. So knew what I wanted to do later but for now, oh well. 

 Hi Nicholas, thank you. Is it ok if I pm you? 

I knew my reading on no docs loans suggested it was possible but I was concerned about the interest rate. 

Yes but for a HELOC which I would qualify for about $45,000. Was gonna have this on hand for a primary purchase about October as December would make 2 years at my present residence.

I have already scheduled my state exam for recertification with the intent to go back to full time work for about 2 months around September. At least that was the plan. 

But u know opportunity knocks early and I thought if I could get this property now I could refinance in another 6 months. 

Hopefully I'll know my fate today and explore other options, such as private or hard money lenders for a cash purchase then refinance later. 

Thanks again for the information and words of encouragement. 

@Raymond J. Rodrigues

Yes I was actually told if I went back to fulltime employment in my line of work once I get my first payslip I would automatically qualify.

I was actually considering this for 2 months until the loan processed for a primary loan later this year with a 3% down but this opportunity came up.

Well I'll just have to wait and see if the property on its own will qualify with its projected rental income, which would more than cover the mortgage payment.

@David Wright

Thank you for your kind words and insight.

@ Chris Mason. Thanks for your template on how to provide information in order to achieve constructive feedback.. So here's my story......

I presently house hack a 4/3 sfh with 2 rooms rented. This covers PITI, home owners insurance, all utilities, internet, etc. $100 give or take left over. Plan to reside here another 6 months or so then seek another primary having lived here 2 years.

I've come across an owner occupied fixer upper asking $120,000 in Georgia (South). Hoping to offer around $110-112K. Property can be rented as is for at least $1,150. However, this is not my primary focus as I am more interested in incorporating it into my Healthcare residential business but for now it would be a start.

So I am thinking get a rental property loan with 20% down. Credit score mid 700, above 740.

Current DTI is around 43%, credit cards utilized paid off in full monthly and I carry a LOC which I was planning to pay out but have access to when this deal popped onto my radar.

Here is where things get tricky.. I took a 6 months hiatus from working then decided to do part time work 9 months ago, while I research and tested starting my own business in the health care field. So part time W2. I am told this is an issue with 2 years continuous work history required.

So, I am exploring an option that allows the projected income to be used instead of my income. I understand rates for these rental property loans may be around 6 to 7%, which would still be affordable.

Am I being unrealistic or are there are other avenues I could explore?

Grateful for any advice or feedback..

@ Chris Mason, was having issues with responding under your suggested headlines. So hopefully my narrative captured the important points.

Hi Brian I believe Cameron is talking about FHA vs Conventional for a newbie like myself or someone looking to acquire a primary residence for a house hack. I used a conventional 3% down with PMI which I already now have the option of removing.

This choice was after I weighed the costs of a FHA, plus I didn't yet have the 2 yr working history but was able to find an amazing realtor and mortgage broker who made it possible.

I was able to purchase my 1st and only property Dec 2017, which I've been house hacking with my daughter while my 2 rented rooms covers PITI, all utilities, home owners insurance, internet, Adt full package monitoring, Netflix, etc, plus leaves me about $100 monthly.

So living free with of course Capex, Opex, vacancy and management as my responsibility when they arise. ($621 or 49.68% factored for this.. Cap-$150, Op-$150, Mgmt $140 & Vac-$140, Miscell-$41).

This decision has now put me on the path to keep this property as a full rental later this year while I obtain another low down payment primary residence conventional loan. Not to mention if I decided to sell yr end or the next 3 years with no capital gains tax, cha-ching. 

So, I have always wondered why the FHA 3. 5% with permanent PMI is usually touted as an introduction vs conventional with less than 3.5% downpayment and temporary PMI.

P. S. 

I'm still very new and continuously learning. Sorry for rambling on, but decided to add my journey so it might motivate a newbie reading, that it's possible 🙆.