All Forum Posts by: Dan M.

I don't own in Middletown. That said though strategy is important. If your doing an FHA and plan to stay in one side you have to figure out what that would benefit you. I don't know your living situation but if your paying x,xxx for rent or a mortgage and instead by living in one side and renting out the other you will be paying y,yyy instead and y is less then x that's great, especially if you can rent out your primary residence and make income there too.

I think the best thing to do is live in one side and rent the other when your starting out, I wish I did. You can always leave and repeat the process and rent out your old living area.  

My 2 cents is prices are crazy inflated right now, but believe it or not I think it will continue because of continued demand pressure for the area from people fleeing higher cost of living areas and moving there, with access to 87/17. At the end of the day if you run your numbers and analyze like 10 properties a day, and every single day scour the internet for anything new, you will eventually find something that works and know it almost immediately. Good luck!

Q2 is most important: If the mortgaage is upside down, it would have to be an approved short sale and that could take a very long time to rectify. This should be your primary concern. Id keep looking if it was not an approved short sale ( even an approved short sale takes a very very long time and theres no guarantee that you will even close on the house after months of waiting). 

q1)There are plenty of non traditional lenders that could offer you construction financing if the numbers make sense but it will cost you with points and a higher rate. However I would say those lenders would be more willing than a bank to write the mortgage, and after completion you can refinance it.

Overall, its probably easier and better use of your time to just find another house that doesn't require the construction and where the numbers make sense. Unless this is some type of homerun deal, which I assume it isn't if the mortgage is upside down, then why bother? Thats just my 2 cents though. 

You could force the seller to bring it up to code before the sale is complete as one of the contingencies of buying it, let them deal with it. Alternatively, if the bank ( assuming there is a bank) is fine with it, you could negotiate a credit and escrow the funds to be released after you do it yourself.  It would be wise to rectify it before transfer of title so your starting off clean and hopefully won't have any issues when you go to sell down the road. 

I have to decide if im going to use a new injection of capital from the sale of my primary residence to:

1) Hold in treasury bills at 4.5 percent until I find another property to purchase

2) Pay off one of two existing mortgages, one at 3.75 percent and another at 4.5 percent

3) Just find something to buy that beats either of those percentages on paper and be done with it

4) Possibly loan out some hard money/broker it to a friend to allocate

Its never an easy decision, but its a good problem to have. Times ticking either way. 

Maybe I missed it, Bill B kind of eluded it but why not do seller financing? Assuming you or the family can pay off the excising loan at closing this should be win win for both of you.  

Can you make it a 12 bedroom 12 bathroom? I dont see the floor plan but maybe if you turned a bedroom into 2 bathrooms and connected them to the adjacent units that could work very well. Think outside the box. 

I don't know much about a community but if you have a facebook there is an ulster county investors page which is semi active. Id be glad to help answer any questions though shoot me a message or just post here. 

@Pete Wolven

I found this, looks like theres a meeting in October. This was posted just not in the Upstate NY thread. 

Hello Austin,

I would definitely ask the lender about the 2 line items for loan origination, though 855+855 = 1710 which is exactly 1 point of 171k. Why they broke it up twice is beyond me. I assume you have a 1 point closing fee. All the other junk fees your stuck with, there is no way around it. That's what it costs to get your money and the lender gets 900 dollars to fill out a template, another 900 to fill out an excel sheet, and pockets the spread on the appraisal. They have to make money somehow too. At this point either find another lender with lower fees or just deal with the costs of closing. They are escrowing taxes so you have to put that upfront as well which is sometimes standard. Everyone talks about the BRRRR noone talks about the extra closing costs.

Why not do an actual closing with an attorney? This way there will no be loose ends and title transfer will be clean, you wont even have to issue a quit claim deed. At closing, you will receive a check minus your expenses from the closing.