Home path

[Rick Baker]

I was wondering if I could get some feed back from some of you about the Fannie Mae home path renovation loans. Have any of you used it? Is it a smooth process? Do they have to approve all of the work and who decides how much money is needed for repairs?Is there money to be made on those deals? Please if have any input on this please let me know. Thank you.

[Arthur Banks]

Let me add, I think it's a great program if you find a banker and contractor who've done the process before. Stay on top of what's going on, deadlines and requirements. Make sure your numbers work too! But I'm sure you knew that already. I hope I answered your questions. I had a good idea of what the repairs should cost when I walked the property before putting in the bid. As far as money to be made, assuming my numbers don't change (market rent drops or is off) I should cash flow after all expenses (vacancy, capex, ins, etc. prop manage - even tho' I plan to manage myself, I built in PM for future) just under $400/mo, removing PM adds another $200 or so. So I would say, yes, there is money to be made. And being that I'll owner occ for the first year (or 2) I'll eliminate my current rent and the income from 1 unit will just about cover the mortgage save for $100 or less. Again, this is base on fairly accurate numbers.