All Forum Posts by: Asher Anthes

I'm looking to purchase my first investment property in the 50 - 80k range. I've talked with a few lenders, and it seems that I will be hit with up to 5 or more points because of the small loan amount, my credit score (690) and only 80% LTV.

Is this pretty typical for a small loan? Can I expect most lenders to hit me with this many points in my situation?

Thanks,

Asher

Okay so here's my situation. I bought my first house in may of last year. I have lived in it and rented it out to friends (boarder income). My gross annual income from the house is approx $18,000 a year.

I can't seem to find a lender that will use this on my debt to income ratio. They say I need two years. Will small local lenders be more lenient on this possibly?

Thanks,

Asher

So I'm ready to buy my first flip property, I have the money for the downpayment and repairs. I'm wondering if I should wait a few months because real estate sales obviously pick up a lot in the spring time. I also know that closing on a property and fixing it up can take longer than planned. What is a good total estimate from making an offer to selling the house on my first flip, (3 months, 4 months?).

So, I was excited about doing a 1031 for my first flip, but then I read that you have to own the first property for at least a year. Is there any loophole out of this? I want to flip my first house relatively quickly. Are there any other tax laws I can take advantage of to minimize my capital gains tax on a quick flip?

What do you mean? Isn't the algorithm used to create the "zestimite" which is extremely inaccurate for my home especially.

I just looked up information on zillow and trulia and only used the sales that were reported by both websites in the last 3 months. I feel like this would be a pretty accurate way to determine value. I guess MLS would be slightly more accurate because there is more data, so a better average? Or is there anything else I'm missing?

all the homes are about 20 years old. And yes, I am working with an agent. I'm trying to find a good resource that I can use in addition to my Realtor's data

Okay, so I'm trying to figure out the best way to estimate ARV so I can determine my max offer, ect. I'm practicing by trying to value my current home. So I went onto zillow and looked up sales in the last 6 months in my neighborhood with 3+ br 2+ ba 2000+ sf. (My house is 4br 2.5ba 2800 sf).

I took the 14 sales that were within about a 2 mile radius and found the price per square foot and applied it to my home which puts my value at approximately $182,000.

I am unsure about this method because my appraisal came in only at $155,000 a year ago. I don't have access to MLS, which I'm assuming is the best way to determine value.

But, my question is, is this a good starting point for me when comparing potential deals in different neighborhoods for my first flip? Is it significantly more accurate using MLS data because there is more information?

Thanks!

Hey guys, I want to learn as much as I can in the next few months before attempting my first flip. Can you recommend some good books out there. Not just flipping, but buy and hold, and financing ect. Is there a good book on 1031's or related material? And are there any good books out there written in the last 2-3 years that cater specifically to this unique market we are in now?

Thanks!

That's interesting Ali. I was just wondering how debt to income ratio is calculated. Here's my approx monthly income and debt:

Pre tax salary: $3,330
Gross Monthly Rental Income: $1,225
Total Monthly Income: $4,555

Mortgage: $915
Student Loans: $273
Minimum Credit Card: $10
Total Monthly Debt: $1198

According to this I would assume my debt to income ratio would be 1198/4555 = 26%

However, when I went to a few banks a few months ago they said my ratio was in the low 40%'s. I'm assuming they are not counting my rental income because my taxes weren't filed. I have one years tax returns and lease agreements under my belt. That's got to count for something at least with smaller lenders. Right?

Thanks for the responses.

Jon, at what point do you think hiring a property manager is worth it? I have a pretty busy schedule as it is, but there is no way I could justify paying a company $100.00. I was hoping to manage my properties until I have 3-5 and then hiring an individual instead of a large PM company (cheaper, and more direct control). Do you think this is wise?