The question is was it prepaid in reserves or will you end up with an assessment that can derail your business model.When condos become really unpopular they can become a buy, when popular, not so much.

. ------------------------------------------------------------------------------- STANDARD CLOSING COSTS Closing Costs Origination Fee $2000 Appraisal 500 Title Insurance 390 Title company closing fee 500 Underwriting Fee 700 Processing Fee 240 Recording fees 88 TOTAL 4418 Tax Escrows & Prorations (e) 7000* First year of homeowners ins (e) 700 Prepaid interest (e) 300 Purchase Price 124900 TOTAL COST 137318 Minus Loan Amount 99920 Total Cash -37398 *Tax escrows and prorations may vary. 30 Years Fixed no points option- 5.375% (APR 5.62%)-Loan amount $99,920 principal & interest payment $559.52 plus taxes and insurance (estimated at $645 per month) for total payment of $1204.52 per month. """ Is this competitive???

One thing that I can remind you - you MUST HAVE RESERVES, and you will also have closing costs as well as pre-paid escrow items.

You will need about $2000 at the start (prepaids, closing costs, etc.), plus enough to get the rehab started.

I would break it down month by month in the construction stage based on the draws you are going to require.A6: List 17 named ‘Interest Only (est. 5 months)’ accounts for the prepaid cash to pay the interest only of the mortgage.We are estimating a 5 month construction period of which a total of $30,067 will be needed in advance.The assumption is that we will begin construction in May and complete by September.Year 1 only includes 3 months (Oct, Nov & Dec) of full mortgage payments ($96,682 annually / 12 mo. = $8,057 x 3 mo. = $24,170).We did the same calculation method to est. the year 1 (buildout year) for the taxes and expenses.

The whole concept of prepaid rent and notice for termination get a little murkier.  

You would net roughly $150,000 in cash from this transaction.You are pre-qualified for all of the scenarios I have outlined…below is a spreadsheet for you to compare options:ProgramEquity Line of Credit $90KEquity Line of Credit $130KVA RefinanceTotal owed against your home$360,000$400,000$424,000Rate4.75%5.75%3.875% FixedTermInterest only for 10 years then amortized for 15 yearsInterest only for 10 years then amortized for 15 yearsFixed for 30 yearsClosing costs and pre-paid items for closing$1000$1200$4900Net cash proceeds available after covering closing costs$89,000$128,800$149,100Monthly payment$357 + first mortgage $1802 = Total monthly payment is $2159$623 + first mortgage $1802 = Total monthly payment is $2425$2370 PITI first mortgage only Please let me know what price range of investment property you are considering and if you will need a loan on the investment property as well….and I can run figures for you.

Hi everyone,  I need your professional advice, I found a house off market that if for sale, but the owner wants to sale it  with an existing elder tenant that has prepaid two years of rent with 10 months remaining, as she already prepaid, she won't be paying rent to new owner.  

If you buy at $100K house, your transaction costs are about $3000 (not counting pre-paids).

So on the 1st he's caught up rent's paid in full, never a late fee, and with his next payment on  the 15th he's already in advance for the next month by 1/2He'd have a prepaid balance on account of 50% towards next month's rent.No need to rewrite lease just tell him your accountant won't let you do it any other way.