All Forum Posts by: Debra Grumbach

 If he owes taxes he may just be in over his head. But he likely also has a mortgage. I would ask him first what he hopes to get by selling the property. Or what he "needs" as in a quick close, out from under the upkeep/repairs/management/etc. Everyone thinks about price first but for many sellers that is NOT the main motivation for selling.

If you have "re established credit" I know VA doesn't ding you for the BK. Of course, individual banks have their own criteria but it's easy enough to find one that doesn't. VA loans are sweet that way and rates on VA loans are usually a bit lower rate than other loans.

Just wanted to point out that VA only requires 2 years post bankruptcy and FHA is either 3 or 4 years (can't recall right now) post bankruptcy to get a home loan.

Something interesting I found here in TX is that property management companies "usually" only take one application at a time. That isn't a viewing. Viewings continue until an applicant is accepted and a lease is signed. I would definitely try to do showings in bunches. Cuts down on your time, shows people there is lots of interest. You take the application and the fee (here tenants pay a fee for the credit and background check) and run it. If they are acceptable they get 3 days (maybe less) to sign the lease and give the first month's rent and security deposit (cashiers check or similar). Otherwise, you move on to the next applicant. All the places I have dealt with will not "cash" your check for the application until/unless they actually decide to process your application. So if a tenant really loves a place and they are hoping the 1st applicant doesn't complete the lease, they are next in line. Some states require you to process applications on a first come, first processed basis and accept the first who meets your criteria. This keeps you from discriminating in theory. You didn't skip over the couple with the baby and take the two "singles" who are doing an apartment share because you didn't want to deal with possible lead paint exposure down the line.

 tankless heaters last longer as they aren't holding 40 gallons water. And with a good drain pan, when they eventually leak, you won't get a bunch of damage to the home.

I loved my tankless! Just be aware that if you are paying for water, that cost will go up! Showers won't end because the water gets cold. I had a teenager in my home and he started taking VERY LONG showers. UGH! 

Be sure you get it sized correctly as well. And you have a cold climate so that plays into unit selection a little too. Mine was in MA (assuming your rental is there). I did have to have the contractor pull a permit and they took care of the plumbing and the gas connection and had to install a detector (smoke? heat?).

All the info here is correct. But to make yourself feel better, and get the ball started, call a mortgage broker and let them know exactly what you want to do. They can walk you through all the numbers and when you submit your documents they can even give you a pre approval letter which you should submit with any offer you make. And don't forget to be clear on all the closing costs  and prepaids you will have to come up with as well as reserves you must have at closing.

Try going to a flooring store or 3 that does installs and ask them to give you pricing on full install. Ask them about "extras." Let them know you are a RE agent and want to be able to refer clients to them. Ask them about things to look out for. For instance, when we did carpet in our home one of our rooms was more than 12' wide. This meant we had to order only 15' wide carpet. And carpet is sold by the square yard based on what they need to do the job, including cuts, not what actually gets laid. So a 13' by 12' room costs the same as a 15'x 12' room. Other materials may not have this issue but you will still pay for every box of tiles they have to order, and a bit extra maybe if there are lots of cuts.

You can do the same for counters and other common upgrades/repairs/updates. After talking to a few (with some measurements) you will get a pretty good handle on estimating.

if you are going to live in one of the units initially then you can finance similar to buying a SF. Banks will use 75% of actual rents plus your W2 income and then apply their DTI ratio along with credit score and all the other things that go into them determining if they will finance the deal. These can be "conforming loans" like FHA/VA for low down payment.

If you don't live in it then it's similar but it's considered a commercial loan and you will likely have to come up with more down payment. 20%-25%

Does anyone have concern that Detroit has a HUGE pension issue (and is just coming out of state oversight) that has not been addressed? What will they do to fill that hole?