All Forum Posts by: Diana Muresan

@Sean McKee yes, banks use sales comparison to determine value, however, the rent comparison is useful to figure out the cash flow 

@Ki Lee you could have an appraiser to estimate the value, a realtor will not have the expertise to know what comps are accepted by banks in this situation where there are no comps in the area. Also, have a GC quote for all the reno and find out From the city what it takes to concert it to condos 

@Sergio Dorval I would refi to cancel the Mi and I would purchase another MF as owner occupied with with 3.5% downpayment on FHA or 5% down with Freddie HomePossible, build your closing costs under sellers concession.

@Christopher Soos I could assist with finance questions. 

@Glenn Hoffman yes, hard for me to find MF in Chicago that make sense on paper. Some of my borrowers adventure out to God forgotten suburbs and as far as Milwaukee but, I guess I need to get out of my comfort zone. 

@Amit Sinha why would you do the loan under LLC? COnventional market doesnt allow to close under LLC, you can put the property under LLC after clsoing, only subprime market allows closind under LLC, the difference is in the rate and clsoing costs. you could expect a 5.125% 30y fix, no origination or discount points on conventional but on subprime you will pay 2% origination points

@Michael Wilson you can do an OO every 12 mo as long as property is within reasonable commute form work (if you are W2) and it looks like an OO. Hard to explain you move from a $500k SFR to a $200MF, just to give you an idea.

It’s easier to qualify for a MF as you use the rental income to qualify and also you have departure residence rental. 

@Nate Fanara yes, you can refi after reno is done. You can also consider an investment renovation loan next time, FannieMae HomeStyle, 85% LtV, you can also roll the mortgage payments during the reno into the loan. You can refi or sell after the rehab. This reno loan is the cheapest product on the market when comes to investment flipping 

@Adam Noble I wouldn’t listen to what  other people tell you, just ask the city. It’s not easy to find that info. I was about to get a MF and use it all as Airbnb and my realtor told that even though lots of buyers do that, it’s just a matter of time until the city cracks on inv MF. I don’t want to take the chance to invest in furnishings and to be fined and remove them later, even though that might not happen for a while. No one seems to be even familiar with the city rules.... so do ur due diligence 

@Adam Noble each city is different. For a MF if you occupy one of the units you should be able to Arbnb the others. In Chicago no one even knows that City doesn’t allow Arbnb on investment MF, I am sure they will crack down in the future. 

You can get a MF with a 3.5% FHA or 5% down with Freddie HomePossible

@John Chace I am a banker so not an expert in your area, however I close 3-5 MF per mo, here in Chicago aeaa I sent my clients to the only realtor I know she specializes in MF, she had closed hundreds by now. I think you start with buyers and then you get to listings, when you have a data base of MF buyers that your worked with, it’s easier to send them your listing before you even list it