All Forum Posts by: Andy Collins

If you have more than 4 conforming mortgages, you can't do a cash our conforming mortgage on any of your rentals (but you can on your primary residence)

As someone stated, you might be able to get a private money loan,,but as far as conforming mortgages, no cash out after mortgage 4

andy

when I buy a property the first thing I look at is big items,,AC/Heat, if its old and may cause problems I replace it, it saves the tenant and myself problems (and I make sure and note to tenants it has a new AC/Heat unit and that will save them money on utilities).

I use vinyl plank floors in any traffic areas, more expensive than carpet, but it looks great and holds up extremely well.

I have granite in one house only because it came that way,, I just don't trust some tenants to treat it right (like stand on it and crack it).

I change our all light switches to the new 'rocker' style, and all plugs with the square style,,cost is little, looks great and helps moderize the house. I change out most ceiling fans/lights especially in living/kitchen areas that people see a lot. A new light fixture in the kitchen or living room can make a world of difference.

I change out appliances on a new purchase unless they are like new,,,I'd rather spend $250 putting in a new dishwasher now while its vacant, than in 6 months with someone living in it and complaining

One thing that was mentioned that goes against my experience, you can refi based on the new appraised value only if you can show you have made upgrades to the house,, if you only put a little paint in one room,,they will want to use the amount you paid for the house and not based on new appraisal

The reason the refi is based on the new appraisal is you have done work to improve the property and thus the value of the house has increased,,the fact that you got a great deal doesn't really matter to the lender,,they want to lend on what you paid if you haven't improved the property.

That's been my experience anyway,,but hey, not usually a problem, I normally have to do a lot of improving!

If you are talking about paying $50k, for a property that is worth $100k, that are some creative ways to do that,,,if your talking about $85k on a $100k valuation,,,you won't be pulling any money out anytime soon.

Mortgages on investment properties are typically 75% of the appraised value (again, on investment property, not your personal residence).

A couple of years ago you could work something like that if you found a super deal,,end up pulling cash out,,unless your market is a LOT less competitive than Dallas,,your not going to be paying 60% of appraised value (unless it needs rehab, but then you have to add that cost in)

yes, the limit is 10 conforming loans,,,doesn't matter if you use one lender or ten

same here,,just because it has a 'foundation problem' isn't a reason to run away,,but there are plenty I have run away from

Yes, you can get 10 conforming, if you go to a bank or a broker not familiar with investors they might tell you 4, but its 10.

The underwriting changes when you get to loan 5, and frankly its more of a headache for the broker (and the borrower), so a lot of lenders don't handle 5-10.

Some of the rules that change beside the reserves, no cash out on NOO after your to mortgage 5, your mid score has to be a 720.

As far as portfolio lenders,,as many as they will write you, and when you finish with that lender go to the next,,the limits are on conforming (say Fannie/Freddie) loans

I remember a REO a few years ago that the prior owner had written 'notes' to the bank and anyone buying the property all over the walls,,,in a kids room there was a note saying something like "i hope you enjoy what was my house,,I grew up here and the bank took it away"..

I have to admit, nothing written had bothered me until I saw that, then I just left,,,bad karma

Insurance is different state to state and city by city (and even zip code by zip code), but generally speaking insurance on a vacant house is more expensive than a house that has someone living in it,,and they often won't cover as much.

A vacant house is much more likely to have a loss

andy

Chances are the people wanting to rent won't want to move in the next day (when I have someone "ready to move in immediately the first thing I want to know is what about notification of their current landlord).

As others have said, give him a daily rate for the boat, but set a limit on it,,not under "10" days or more than 20, or something, and have it after that period the 'rent triples,,that way he is motivated to have it out.

also as others have stated, not security deposit returned until everything is gone,,he shouldn't have a problem with that and that way you will actually get the rent for the other items.