All Forum Posts by: Ben V.

I agree with @Reid Chauvin on this one. Would definitely go look at other lenders. 2-3 more actually. You may find they don't support those same rules. 

But in general you can purchase a new 2-4 unit that will be your primary using FHA. It's not a bad idea to consider Conventional either. Always look at all your options.

Cheers!

Hey Jefferson,

Sorry about your predicament. It sounds like it is bad, but definitely salvageable. 

I would say @Caroline Gerardo's options are pretty good. The best one is probably to just sell. I hate saying that because I love rentals, but in your case you need some cash to pay off other debts. 

Doing a cashout would not really solve your problem as a whole, it sounds like. You'll still have that new, larger payment to make. Plus the appraisal will still need to pass and you mentioned the roof needs to be replaced. Lenders look at the whole picture even on a refi. Unless you get an appraisal waiver, which is a unicorn. 

The DSCR is the same way. That roof may keep you from refinancing depending how bad it is. That's why we say in this profession "You're approved with an acceptable appraisal".

There are however other types of loans that might benefit you. Would need to see the whole picture to help determine what your best option is. 

Hope that helps!

P.S. Do you have a real estate agent? Are they helping you with what to do next?  What is their advice on this whole matter?

Cheers

Grab some equity out. Only pull what you are comfortable paying for by yourself in case things go south. Spend it on real estate. There are turn keys a BRRRR properties out there. If you are experience in renovations then try that.

Cheers!

 Hey Scott,

Thanks for the feedback on my reply. I guess I would agree with you about the cautionary thought processes you have when it comes to a DIY gut renovation on a home when you have no construction background. However I wouldn't say it is a horrible idea, instead perhaps I could agree more that it could be unwise at the very least. 

Perhaps just to be the devil's advocate I could respond to your points, but hopefully you wont take it as disrespect or that I'm arguing with you. Just one professional to another to help the OP. 

1. I agree with you

2. This is a true statement, but there are risks with anything you do in life. Taking unnecessary risks is a bad thing, but educating yourself on homes and construction can mitigate these. Not everything is dangerous in a home. 

3. This is also true, however if you don't have the money to hire contractors (which I never had cause that will cost thousands) you'll need to take a loan out or find a way to pay them. This increases the DEBT hole that you are already in. Very risky especially if you spend too much and don't get a return on it. Plus if you are just starting out, your time is essentially worthless, meaning you can spend a lot of time working on your home and it not eat into your return as much hiring a contractor for thousands. I would challenge you to see how much contractors cost for a kitchen remodel, bathroom, living room, porch, and bedrooms. It's thousands....

 4. This is somewhat true...Not every licensed contractor is cut from the same cloth. They may not see a project through all the way, or perhaps deem something "complete" and you disagree and who's to say who's right? Contractors unfortunately can sometimes have a bad name to them...namely "Dishonest" as some just don't complete the work and can run off with your money. If you don't believe me search the forums for horror stories of contractors doing that very thing. 

5. This is absolutely true. But that never scared me from DIYing. I guess in my story we really didn't do any MASSIVE remodeling like removing a wall or adding a bathroom. Those types of projects typically require certain codes to be followed. But nothing you can't learn yourself by simply reading. 

6. I suppose you could use this argument for anything...are we as landlords not allowed to replace a ceiling fan? Which is pretty easy by the way...or an electrical outlet? Or perhaps another easy one would be a simple light switch? My point is not every project requires a professional. 

In summary, I could get behind Scott's thesis of "Don't DIY big jobs". But I would also add to that... Figure out what a big job is before hiring a professional. Replacing carpet with Vinyl Plank Click flooring seems like a BIG job, but in reality once you start placing those planks down and you've done your measurements it's really not that difficult...but it is big cause it's going to take you a while. 

Correction! - I realized I failed to mention I did use a contactor to replace the roof later on down the road. So yes, I do believe in using contractors when the work is out of my league. 

Cheers!

Trying to start a business. 

I am trying to use a virtual address but the problem is when I got to create the address I must notarize it saying that it is apart of the business. However I have not made the business yet because I do not want to use my home address for the business. So, I guess my question is how I can I create a business (LLC) in the state of Florida with a virtual address never using my own address?

Thank you, BP Friends!

 Hit me up please! Would love to connect. I'm a mortgage officer on my third deal. Anything I can help with I will. 

Cheers!

Welcome Aaron,

What a great question! I would totally agree with @John Clevenger with all he said. I would like to add that learning the financing aspect of things is also going to help you. What programs will work for you. First time homebuyers that use their property as a primary home can take advantage of low down payment anywhere from 3-5%. If you end up buying a home that is an investment you'll typically need 20% down. 

20K is definitely a good start! Depending on the home you purchase and what you are trying to do you could purchase pretty quick. There are ways to help with your funds also. Seller credits are a great way to help with the purchase. That is where the seller agrees to pay a certain percentage of the purchase price towards your closing costs. I negotiated seller credits on both of my last deals resulting in about 15K in savings. 

Getting your RE license is always a great idea. But it does cost time and money. Will it produce the outcome you need? I don't know for your situation. I am currently studying to take mine. So I will be a licensed mortgage officer and real estate agent. For what I am doing it fits, but not for everyone. 

Keep asking questions! 

Cheers! :) 

7 years and the house isn't in shambles??? Wow... I'm more here to follow this thread so I too can find out what options you have are. 

But really that place must be disgusting. Or at least that is the perception I have of squatters. 

 I mean without any assistance you mean like a loan? You'll need to purchase the home with cash. 

 Hey Leanne,

Yeah you can refi into a more manageable loan. Consider first that it also comes with closing costs.