All Forum Posts by: John Whittle

 I just bought my 2 bed fixer upper for over the summer, lender had no problems rolling repairs into the loan.  Until the appraiser comes in and says this house is worth 42k needs this this this and this.  When every thing is fixed it will be worth 42k.  Yet there are plenty of comps in the area at 60k-90k.  The bank is local right up the street and has lent on plenty of houses on my street including the one right next door. Loan officer knew the appraiser screwed up but his hands were tied. 

Same area one of the guys I work for refinanced all of his properties.  He has a 16 unit townhouse complex with 4 identical buildings.  Each set of 4 units has it own address.  Lender sends 4 different appraisers in one for each building.  All 4 were all over the place from 125k to 275k.  None of them were even close to each other. 

Credit karma isn't a real fico score.  It could be 100 points off from your real score.  Myfico is the only way I know to get a real fico score.  They even have a fico model for mortgages.  I've only pulled one bureau from them its like $60 to get all 3 at once. Figured I'd spread it out and see how my scores have been improving.  

I had the same problem here in Cincinnati. I found a few banks that would do FHA but the closing costs were ridiculous. I ended up with a bank where the closing costs were low. They were horrible to work with but made it happen with a great rate on a 15% down ARM with caps no pmi. Not a big deal on such a cheap property. Just keep trying different banks I'm guessing someone in Georgia will lend FHA under 50k.

If you lose money renting it out you are not making any income.  I'm pretty sure the banks want to see you can make money in real estate not lose it.

 Funny I just went and looked at a house last night for a rehabber.  He was saying how he purposely seeks out houses with foundation issues because he can get them fixed cheaper than everybody else thinks they can. Then again hes not going Mike Holmes and rebuilding foundation walls.  This one was another cinder block foundation buckled hes just going to have a guy put steel I beams in to hold it back.  Proper repair I don't know but I see it done a lot.

I don't think your allowed to use a name thats not registered. 

Ohio has a name search you can do to see if anyones using your name.  You can file for a dba for $50 but that doesn't lock it in so no one else can use it.  You have to use it for awhile and you can file for trademark name or something.  I'd have to look back through the paper work. 

Its all pretty easy and you can find everything you need here and with google.  You need a federal tax id first I believe but thats easy too.

http://www.sos.state.oh.us/sos/businesses.aspx

In addition to not having a downpayment and possibly enough verifiable income to purchase the house. You are leaving out expenses like insurance & taxes. Roughly figure 10% each for vacancy and maintenance. Low income you need to plan on more.  I'd plan on even more being inexperienced since you don't have any experience finding qualified renters or a good team of contractors.  Finding a good renter can be hard and time consuming.  Meaning months without out rental income while you find one and if you pick wrong they destroy your house. It also sounds like you don't have any handy man skills yourself.  Those can be learned through experience but it will cost you.

Don't be discouraged though.  I had the same wild dream at your age.  Lost most of the next five years to being young and dumb.  Started a business and now at 30 I just bought my first place but its for me to live in.  For now.  It won't be long before I rent this one out or buy another one.  Start paying off your debt, saving all the rest of your money and don't be young and dumb like me and you can have a rental in no time.  Just stick around here and read in the mean time.

It sounds like you its not hurting you that bad losing $150/month. I would do nothing keep the tax benefit, the principal pay down and hope it increases back in value to what it was.  Then it sounds like you still have 56k you could invest in another performing asset.  That could make more than the $150/month you are losing.

Were in the same boat.  I know what I'm getting into with mine but its probably way more work and headache than I should be getting into.  Its certainly not a great deal.  I'm still stoked though.  It will be my first house and I'm going to have a 2 car garage.  One side I'm stoked the other side I'm dreading.  I have to fix the foundation, some structure, change out the furnace/water heater,  pay for a roof and a lot of other things I just want to do.  On top of moving myself, my business and running the business.  All after a rough month where both my trucks broke down and I lost my helper.

  Hopefully you can make time to work on the place so you don't lose much money and can gain some experience.  

Oh and I really hate banks now.  I was supposed to close last week. They drug there feet haven't communicated with me at all the last month.  I managed to get another extension til today.  I had to agree to pay $150 a day until today it will be refunded if I close today.  Call the bank 3 times yesterday finally talk to someone.  Looks good for tomorrow were waiting on one signature,  I'll call you shortly, well I still haven't gotten the call and don't  know if I'm really closing yet.  Can't plan anything dealing with these people.  I would of been packing last week but still don't know if I'm really moving.

 Why are you talking about how much you pay employees in a thread about contractors?