All Forum Posts by: Will C.

@Spencer Cornelia

Congrats, numbers look good. Also, give your friend a pat on their back for their play, 179->300 is a decent live in flip play depending on their Reno costs.

I'll be curious to see a follow up after you have been managing the 6-7 boarding rental after awhile. Pro/con of your experience will be educational. Does LV have any laws limiting number of non related people living in one house?

One more thing, in your 2019 estimate of earned income, are you counting the boarder rent in that 4x projection? Just be sure to confirm with your lender that they will count boarder rental income.

All in all, seems like a hell of a HH. Congrats again on creative financing.

@Gary Crawford

@Ana Coello

Hi Gary I'm also interested in details of tenant management and how all that played out. Has to be some trials and tribulations. Will you try your hand at another 5+room HH? Great job!

@Remone Randolph

I think the point folks are try to get across is that the terms of the contract which govern the EMD and method of financing are mutually exclusive. The appraisal came in low, seller won't come down to appraisal and you won't come up. FHA will only loan on appraisal amount so you can walk, which it sounds is the option your exercising. Just because these events give you the option to walk away, doesn't mean you automatically get EMD back. The sales contract lists how EMD is handled during specific events.

People change means financing all the time during purchase process but terms of EMD remain constant.

The seller could be researching what his/her options are. If this has been a drawn out purchase process, they may be looking for a way to keep EMD for reimbursement of holding costs. If the seller's agent is savy, they may have written in terms for the EMD favorable to the seller in outcomes such as yours.

@Matt Michaelson

I just switched to State farm from Allstate on one of my rentals. A savings of $300/yr on premium and also switched my autos over while at it.

Ive never figured out how the insurance biz works. Seems every three years when I get quotes, someone else comes in cheaper. I will say I was very impressed with the personable service I received from State farm agent.

@Ellen Morrison

Like others have touched on, your closing costs are higher because the loan is so small. The institution is getting their money upfront.

@Philip L.

You'd be surprised at how aware some tenants are to types of windows and other components related to efficiency. I think they consider what they utilities will be and if they think your unit will be efficient, could be a tipping point in choosing your rental. I've been asked several times at showings if windows in my property were double pane/insulated. If this is a B class property and the current windows are the old aluminum single pane, I'd consider replacing with vinyl or similar. I've lived in a house with those crappy aluminum windows and they can let in alot of cold air not to mention sweat really bad.

That price seems decent, I'd be weary of going to cheap and compromising install quality. Find a good independent guy, the supply company may can recommend one.

@Dale Miller

Why are you interested in switching to FHA if you already have conventional pre approval?? FHA is far less favorable, lifetime PMI, higher upfront fees....Are you wanting to reduce down payment? You can get a 5% down conventional...

@Mo Farraj

Depends on your strategy and how hot the market is.

@Adam Scheetz

Is this on MLS? Not sure about your market but I've seen REO commonly listed here low to drum interest and bidding war. I'd suspect an immediate highest and best counter. Damn those taxes are a B!@+(#.....

@Mahauijue Mack

Make sure your wording for "deposit" and "fee" is exclusive. Definitely $250-300 non refundable because there will be damage, extra monthly pet rent on top, May even $50/month for that breed. I'd be suspicious of a German Shepard only growing to 40lbs. Like others have said, check your insurance, some include GS as dangerous breeds. You can always tell the tenants your insurance wont cover such breeds whether it's true or not.