All Forum Posts by: Chris T.

 Just to clarify, I used their "single rental property loan" product. Not the finance line of credit that you had.

I used Corevest end of last year to cash out 2 SFH. It was a 30 years fixed rate at 6.875%. Prepayment penalties for the first 3 years. Closing was smooth and quick. More importantly, they only underwrote the property. Not my entire portfolio.

Here're the fees that they charged me.

CoreVest Fees:

1. Loan origination fee 1.00%
2. Processing Fee $1,295.00
3. Loan Doc Fee $295.00

Additional Costs:

1. Appraisal and market rent analysis Fee average cost is $550.00
2. CDA Review $75.00
3. Flood Cert $15.00
4. Credit Report $24.95, if foreign national, please discuss cost with your processor.
5. Background Check report: U.S. citizen $100.00, if foreign national, please discuss cost with your processor.
6. Tax Service (one time fee for yearly tax certification for taxes owed for proper payment and escrow requirements) $105.00
7. Title Charges, recording fees and escrow: variable $ amount
8. If borrowing in an LLC $350.00 for attorney review
9. Condo Underwriting $125.00 (if asset is a **condominium)

Depends on your risk tolerance.

Many things that will go wrong. e.g. High expenses, Rent abatement, bad tenants, Damages and theft, city violations etc.

Key to success, besides buying right, is to find a management company that can execute. 

@James Dean-Howell

if she's an active investor with a license, she's protecting her reputation as well. 

Ask for the last 3-5 properties she bought (for herself or her clients), what was her approach and why? 

Ask open-ended questions and be open minded. She probably came across a good no of investors in the past, and this is her style of weeding out people. 

 Noted. thanks

Even an inspection does not guarantee you that the property is "free of issues". You could hire different professional trades and pay them for their time to inspect the property. No one can guarantee what's behind a wall unless you gut it to the studs. 

Talk to the neighbors, and see what the neighborhood is like.

Check with the local municipality for any code violations or complains. 

Ask 1 or more seasoned investors to walk through the property with you, if they can identify potential issues that you may have missed. 

Our first house is a duplex with no association. It was perfect for us. 

There is no master insurance policy, I had a homeowner's policy when we're living in it. And since we rented it out, we have a landlord policy. When we had a storm came through, my neighbor went through his roofer and insurance while I went through mine. 

The biggest disadvantage is you don't want to be too different (like different siding or roof colors) from your next door neighbor despite your preference. 

Find a local REIA with active investors, and network with them. It's inexpensive but it will take time for you to build your reputation and business.

Age is just a number. I suggest you get more education first, and figure out what you feel more comfortable with. 

There seems to be a lot of opportunities in your area for $100K and under. 

Go find a local REIA and network.

@Daniel Mendez You could use a HML by putting in 20% down. Fix it up to add value, and rent it out to stabilize it then refinancing it with a conventional loan.

However, if you are using a conventional loan (20% down) to purchase a property, more than likely you're not able to add enough value, and refinance it later. Unless there's a decent appreciation in a few years. 

If there is appreciation, rents will go up as well. Your original loan will be paid down some, and the new loan will be re-amortized.