All Forum Posts by: Michael Brown

Jeff B.

Yes. I understand that you have to have 80% equity. So how do I determine how much equity I have after a year of mortgage payments, and then an appraisal of say, $675,000 based on the numbers I gave above?

Hello BP,

I have a scenario that I need help with. These numbers are pretty spot on and a situation I am about to jump in on, however I don't understand the logistics of the refinancing piece.

Say I offer to buy a SFH for $584,000 in Boston, MA (Suffolk County) with an FHA 203K Streamline Renovation Loan (3.5% down); I put in the max of $35,000 in renovations, for a total of $619,000 into the property less the down payment (3.5% = $21,665) puts me at a base loan amount of $597,236 (just under the $598,000 max FHA loan for a SFH in Suffolk County). Add in the UFMIP ($10,452) for a total loan amount of $607,688.

At an annual rate of 4.25%; My Mortgage ($2,989) + PMI ($423) + Taxes ($409) + Insurance ($150) would total: $3,972. 

Can someone explain or spell out a refinancing situation. For example: If the place gets appraised for $675,000 a year from now (once I have lived there for at least a year) what that would look like?? 

Additional Info:

The home currently rents for $3,000 a month. I believe that with the renovations and the area that it is in (just outside South Boston with 2 parking spots) that it could easily rent for the max in the area currently per rentometer which is $3,500. It is a 3 bedroom 2 1/2 bath SFH. Let me know if I can provide any other details that would allow you to help with the refinancing question.

Thank you in advance for your help.

- First House Hack Attemptee

John Menton ^ ***

David Barnett called up a landlord my buddies rent from. Sitting down with the owner Tuesday 👌🏼

David Barnett lol I was helping Pablo Bilbaolavieja with his post...by typing the different locations, people like yourself get "key word alerts". I myself am in the process of buying an off market deal in Dorchester extremely close to Southie. 😎

Southie Quincy East Boston

My fiancé and I are currently in the process of trying to buy a SF property from an old woman who rents out the property to 2 of my buddies and 1 of their girlfriends. The girlfriend lives in the master bedroom and master bath and is moving out. We would move into her room and keep the rent from my buddies to help pay the mortgage. The property is not for sale but we are like the previous posters mentioned doing anything and everything to get the real estate game started. We currently rent in Southie. I already ran numbers on 500K, 550K, and 600K offers. We are sitting down with the owner next week post marathon to discuss us buying the place .

@Michael Martina My fiance and I are also looking into house hacking in Southie/Quincy/Braintree. We currently rent in Southie. Our plan is to find a mega-dump property and use a 203K loan to buy and rehab the units. We make too much money to qualify for the Mass Housing Renovation Loan, but the Federal version of the 203K loan does not have any income limits. I read the book "Real Estates Best Kept Secret: The FHA 203K Loan". It is definitely worth a quick read, and the way to go as far as getting your foot into the real estate investing world.

@Wayne Brooks Yeah. You must've skipped a bunch of posts. They owe 185K. I am not making an offer. but if I was, it would be in the neighborhood of 50% of the listing price, as I saw the place today, and it was an absolute dive.