All Forum Posts by: Yogesh M sayanakar

Hello all, 

I’m being forced by the builder presumably due to many reasons - yess end close etc, when the investment property is not ready. 
1. gas meter and line hasn’t been installed

2. Shower doors, bathroom glass doors are missing

3. Cabinets are cracked and will take 4-6 weeks to order 

4. Tenant ready to sign the lease but but I don’t want them bothered for repairs after they move in

financially I’m ready to close, but feel like it’s forced. What are my options ?

Thanks,

Yogesh 

It’s a 30 year fixed loan so the nut down is not temporary

Update- I was able to get 30k closing, with a below market price…at 4.25% interest rate. Under contract 

Thanks Dustin and Eliott, very different points of view and definately compelling. My thought was similar to Dustins, where I wanted to be able to get a lower price at a slightly below market rate vs paying a full $450 price at a ridiculously low rate of 3.75%. Do you think builders can offer 3.75%? .. I tend to see they may be able to... for example I have gone from the builder saying they cant do 2% seller credits to 3% now to 5% so whats to say they cant offer 6 or 7% seller financing?

Thanks, 

Yogesh
 

Hello I have a simple question- there was a property that went pending for $450 and came back in the market - so my offer price $415k @ 5%/30year fixed interest with 25% down, here the builder is giving 20k towards closing - rate buy down. I was countered $450K at 4.375%/30 year fixed interest with 25% down with 30k in rate buy down money from builder. Both are somewhat equivalent in monthly PI(more or less), so I'm considering increasing my Down payment to 27% and counter at $425k at 4.375% down using all the seller incentives but anchoring on a lower cost and increasing my down payment by 2%.. which is making the most from seller incentives. My counter gives me a chance at $300+ cash flow conservatively on a brand new SFH in a growing area.

Appreciate the thoughts from the pros on this. 

Nate,

Thanks, the thought behind forced equity is primarily to be able to leverage the cash out refi in a year to be able to fund another investment. So even though I may be cash flow even (not positive), I’d we building equity and laying down debt. I’m still trying to work the numbers and see if I’ll be able to float the deal. I’ll update is there is any tangible movement. Curious to hear other members POv

Yes I have gained about 10% equity in the townhome as well since I brought it below comps. Thanks did the reply. 

Hi folks, I recently closed on a new townhome that I purchased at $302990 and rented it within less than a week for $2100. I did secure an 7/6ARM for 6%, and plan to be able to refinance within the next few years to a 30 year. I’m $270/mo cash flowing and self managing the property, comments , thoughts welcome. 
I have another opportunity to rinse and repeat is the same community  OR buy another new property in a neighborhood priced at $425k but won’t cash flow, because the interest rates and rental potential risk  don’t lend itself to cash flow, I’ll be even at best.  This more expensive property has comps that sold for over 500k, so I’m thinking forced appreciation as a possible way to buy and refi in a year to 18 months. 

What would you recommend ? - rinse or repeat the townhome deal or buy the more expensive deal with forced appreciation?

Just to be clear.. my strategy is buy brand new homes only that are cash flowing asap and hold them for a 5 year period atleast. 

Thanks in advance