All Forum Posts by: Brad E.

@Peter K.

....this place was recommended to my be a friend.  

@Peter K.

This is a local mortgage company.  

I will never deal with a big bank on a mortgage again.  I've been burned twice now by bank of america.

@Peter K.

Man, that is painful.  

Thank you for sharing.  

I'm doubling down now, actually.  Today I have started the process over again with another lender and extended my contingencies.

Everyone I have talked to says that I got a bad appraisal the first time around.  This new lender is also telling me he thinks it should appraise.

So its pretty risky going back again for another appraisal but I think it will appraise this time.  All the time and effort I put in with BofA was a waste.  I lost about $750 so far since the first appraisal was useless.  

Really hoping this next one comes back at contract value or better.

I'll definitely share.

@Chase Leavitt

Very nice still!

@Steven Payne

Sure - 

Contract: 87,500

Rate @ 20% down: 5.1%

Rate @ 25% down: 4.7%

After looking at this more yesterday afternoon its more complicated than i initially anticipated due to the imapact on the cash flow.  I know you can 'buy' cash flow but what I want is max leverage.  Seems 20% is the clear winner in that case but after I started playing with my analysis sheet it doesn't seem that straight forward.

@Joshua Swart

I need to look into this!   Thanks for the tip.

@Joshua Swart

Funny how the previous owner has a prime location for students but doesn't want to rent to them.  

I also invest in a college town so I can relate to your situation there.  I would expect you many have to hold it for some time.  Don't forget there will be new students coming in with the new semester in Jan. so if you can make it until then you might good.

I have a question though - how are you getting a loan at 20% down?  I cant find anywhere that will do 2-4 unit houses for less than 25%.  It even says it on the fannie mae site: https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf

@Andrew Merritt

Is your strategy buy and hold?  If so I would probably go with the duplex.

The cigarette some you can get rid of, and if you are holding for a long term you are going to need to replace the HVAC at some point on any property. I'd just make sure I was capturing that in CapEx.

It also depends on what 'safer' means to you.

I'm new to this too, but those are my thoughts.

@Tom Valichka

Makes sense and easy to do in excel.  Thanks!

So did you guys get it resolved?  I mean are you unlocked now?