All Forum Posts by: Belinda R.

I came up with $1791/mo on a $315k loan, amortized over 30 years. Factoring in PMI at .52, I came to $1922/mo. Click on the spreadsheet to get his exact estimate for property taxes, insurance etc. In the spreadsheet, he's allocated $363/mo in management fees. If your living in the property (which you should since its an FHA loan) and managing the property yourself, you could eliminate the mgt fee to cover the difference. Also his ex. is for a unit in MN. The property taxes rate, insurance rate etc could be much lower in that state vs Ohio.

on a 315k FHA Loan:

FHA – 4% Interest Rate (without PMI)

Down Payment 3.5% – $110250
Mortgage Insurance – $0 (Monthly) 
Taxes – $240 (Monthly) – Estimate per the spreadsheet
Hazard Insurance – $100 (Monthly) – Estimate per the spreadsheet
Principal & Interest – $1451(Monthly @4%)
Total Monthly Payment – $1791

FHA – 4% Interest Rate (with PMI using .52 factor)

Down Payment 3.5% – $110250
Mortgage Insurance – $131 (Monthly) 
Taxes – $240 (Monthly) – Estimate per the spreadsheet
Hazard Insurance – $100 (Monthly) – Estimate per the spreadsheet
Principal & Interest – $1451(Monthly @ 4%)
Total Monthly Payment – $1922

It's been a while since I've done mortgages so maybe someone else can come closer to the $1600/mo estimate. I could be missing something.

FHA loans typically have lower interest rates. The property will have to meet FHA appraisal Standards prior to closing. Conv loans are a little more lenient on appraisals. This was the case when I orignated single family homes loans. It may be different for multi family. I think the guidelines apply for 1-4 units though.

Your play by play was hilarious! Reminds me of Than Merrills seminar. Same spill. 

You mentioned doing a cash out refinance. Are there any prepayment penalties associated with a Homestyle mortgage?  

Welcome to BP. We've all made mistakes as well and it can be discouraging. I'm glad to see your willing to try again. Shows preservance. Download and listen to the BP podcasts. They give great advice as how to avoid pitfalls while investing. Good Luck :)  

Correction: I looked at w9 again. I have his SSN not the EIN. So Im guessing I will send a 1099 in his name not the company's.

 I have one W9. The W9 I had him complete has the company's EIN. I don't have a SSN. I'll be sure to get both in the future. Thanks.  

I just realized when paying my general contractor last year, I wrote out some checks to the company and some checks to the name of the owner. Oops! I'm not sure if this matters. I intend to issue a 1099 for the total amount I paid for the project. Every check written, referenced the address of the rehab. 

I ran into this issue recently. I declined the couple after talking to an attorney. he basically said if the deal goes bad forget trying to garnish wages for past rent or damages to the property. If u can, collect as much upfront legally allowed in your state. It was too risky for me.