They should have also gotten approval from you before charging and doing repairs.

Hey @Brad Roche - We do a significant amount of renovation loans (both Fannie May & FHA) here in Chicago and prefer the Homestyle loan only because it's less stringent on the borrow about what they have to repair, and they provide the general contractor a material draw at closing which helps the project start on the right foot.I thought the minimum down payment was 5%.

Repair costs in first 1 month of owning (this is renovated house done by seller, not me.

Washer/dryers are often abused, so there's the initial cost of purchase and the risk of increased repairs.

. $150k down, 5 year balloon, 8% interest, no inspections, repairs, or appraisal, $20k over asking, and most importantly.

Discussing options with my wife, we are looking to take ownership of the house, make some much-needed repairs, and getting it rented out.

With my own portfolio I generally underwrite with 10% for repairs, 10% for cap ex, 5 percent for vacancy. 

LTV Consideration – The 60%-70% LTV is usually based on the After-Repair Value (ARV), meaning your loan should be within that range relative to the projected value after renovations. 2.

The best deal I can find today is one that you buy cash, invest a rehab and when you pull out 75% of your ARV you leave maybe a small amount of money in the deal and you break even (BEFORE DISCOUNTING FOR VACANCY, REPAIRS, etc) Yes that means you leave like 10-25k in the deal and your payment becomes $3000/m and your rent is $3000 a month or slightly less.This is for my local market and for Class B or higher RE. 

If we rent the unit at $1,425, I have an estimated monthly cashflow of $302 (rent at $1450, cashflow is $325) I DO include vacancy, repairs, and cap exp in my Box2 Expenses.