All Forum Posts by: David Adamolekun

I have a rental property in NC that I recently acquired for 120k. 3 Br 1bath. Currently listed for rent at $1250/month. Multiple enquirers but none close to asking price. Approach by a rent to own company that wants it for its client.

offer 1: rent-1000/month for 4yrs

            Buy: @ end of lease for 117k

offer 2: rent - 1200/month for 2yrs

              Buy: @ end of lease for 125k

it’s my first rental property and my real estate long term plan is buy and hold. I’m caught between two minds now, I will like to stick to my original goal but I feel I could do better with my subsequent rental property in terms of home specification (Br, baths etc) and location. I don’t want to let go of an asset if I don’t have to but I’m not attached to it either. 

my plan is to negotiate for higher price for the value of the house at end of lease. If it’s met, good, if not, I’ll keep it. Rate of appreciation on property in the area is 8%( so have been told) but 6% seem reasonable based on bought and sold houses in last 24 months.

Thoughts

Thanks James. I did call up the mortgage company to understand what the fees were. Some were junk fees like “transfer of service fee” Don’t really know what that is. Other reason for high cost was estimated cost of home owner insurance that was stated. But after shopping around I was able to cut that price by half.

thanks again

any trick to lowering closing cost fees. Some of these fees seem redundant. I was of the opinion most closing cost fees should not exceed 5%. Other than blatantly telling lender to lower fees, any other suggestions on how to go about it?
Currently looking at a 96k loan for 6.25% in closing cost.

Thanks. 

@Lori Greene

Couldn’t find a lender that wants to go below 87.5k. Found a property and made an offer for 78k (asking price 84k), I thought I had pretty good chance but lender wants 87.5k contract price (80% of accepted offer needs to be 87.5k or more).

Likely could come up with all the cash but then I won’t have any reserve for rehab.

Thanks. Got interest rates 5.62% and another 5.25% recently. Investment property I’m looking at is 75-85k with likely 10k rehab(out of pocket). Have you found significant difference in fees/closing cost attached to this loans. One lender charged me same dollar amount in closing cost for $150k loan as  the other lender of 300k is charging.not that I need all that loan to begin with.

Interesting thought regarding buying down points. I Was hoping i could hold on to as much liquid cash as possible for the rehab. Thanks for the numbers. Helps put things in perspective.

what is the going rate now for interest rate on investment properties? I Ran some numbers with local mortgage loan company and i was quoted 5.62% with 20% down payment on a $150K loan.  nothing spectacular on credit report, just shy of 700. surely there are better rates out there, right? I was told because I'm sub 700, i should consider 25% down to get 5.5%.

@Justin Wotring

Congrats. Lived in Toledo for 5yrs. Huge rental market. Working on first property in NC.

Would you recommend buy and hold instead of flipping for a new investor? Which will be my preference. 

Unfortunately I missed it. I will be interested in next upcoming event. Thanks