All Forum Posts by: Eric P.

I just got a quote for SFH investment cashout refi.  Owe $82k home worth about $140k with $700 out of pocket I can get a 3.85% and pocket about $23k.  My current rate is 6% so I'm ready to pull the trigger.  Cash out $23k and my rate only goes up like $30 a month.  Me and wife have credit scores over 800... I'm still waiting for the mortgage guy to tell me he messed up.  

So between the 2 of them there are 8 accounts in collections, they said they’re “trying to rebuild their credit” but the most recent late payment on a debt was THIS MONTH!  Top it off that they have a cat and we’re just going to have to let them know they didn’t meet the criteria.  

They’d have to give some pretty good answers for me to get comfortable I think.  The area is a C neighborhood, so I know I’m not getting 700 or even high 600 credit.  

I have a family member who is a real estate attorney who can help with an eviction to make it as fast and cheap as possible if ever needed, so that makes me comfortable with a little more risk.  

Place has only been listed a week, had 5 people reach out, two were instant NO’s.  So it’s not like I’m dying to get someone in there either. 

I'm looking to rent out my first place.  It's a nice house in an up and coming C neighborhood, so I'm not expecting perfect tenants.  

I met an engaged couple today in their mid twenties, I got a good feeling about them, very well spoken and sweet, familiar with the area.  Both work and have good work history.  They were very upfront that they're trying to build their credit.  Background came back spotless, both work and have a 3+ year history at the same places.  Their rent history shows no evictions, pay on time and no bankruptcy..  Problem is a very low credit score in the 480s with 4 different collections, these collections are all small amounts $150, $250, $400, $700.  It almost seems like these were simply accounts they forgot to pay as young twenty somethings do (I was guilty of this).  

If they check all the other boxes, how important is a credit score to you?  

That's what I'm talking about thank you!

After years of analysis paralysis and having to catch up from a few months of unemployment, I finally closed on my first rental property!  Friend of the family is retiring and moving out of state, wanted a quick sale and just came into some $.  So even though the house is valued about $150k I got it for only $100K!!! 

Mortgage, PMI, Insurance and Taxes = $950. Comparable rentals in the area are going for about $1,600.

The seller is actually renting back from me for about 3 months, which is nice because that'll take me right into spring.

What I'm looking for is a sort of Landlord checklist.  What are the little things I'll need that may be overlooked.  Smoke alarms, carbon monoxide, fire extinguishers on every floor...  That sort of thing.  Also, do I need to be registered as a landlord or anything in the state of NJ?  I feel like there is some sort of filing I would need to submit.

We're in the middle of purchasing our first rental.  The process is taking longer than expected which is okay.  Our rate lock is expiring, and our mortgage broker sent us documents to sign to re-lock the rate.  We did the original rate lock when the 10 year yield was at like 3.25 and the rate was 6.3% now the 10 year yield is 2.95 and I'd have to imagine rates are 6% if not lower.  

I don't care too much since the mortgage is only $80,000..  I don't think my lender is looking to charge me a fee to relock, but am I correct in assuming we can't get a lower rate?  Is it worth asking if we can split the difference?  

Originally posted by @Ed Emmons:

Generally if the previous owner did all repairs and remodels with permits the building will have a CO and that should transfer. Unless your area is different from other areas, you shouldn’t need a permit to rent a property. In your purchase agreement, normally you would require it to be up to code. If not you should have it that way before renting it out. Most important is life safety issues like smoke and CO2 detectors and egress. If you have never rented out before, you will want to familiarize yourself extensively with the landlord/ tenant laws so that all your paperwork is in compliance and screen very well.

Thanks Ed, this is actually an off market purchase from a long time family friend.  They're retiring and just want out without any headaches, $150k value purchased for $97,500.  Roof, A/C, Furnace, Kitchen, Washer & Dryer, all less than 6 years old.  I'm very lucky to an Uncle who is a real estate attorney, so I have that in my pocket as well.  But I'll start reading up more on all the landlord/tenant laws for sure.  I'll be calling my insurance company to look into an umbrella policy as well.

We're about 2 weeks away from closing on our first SFH rental. Rental is located (and we live in) Burlington County, NJ. Trying to get an idea of what permits, paperwork, fees, etc. I need to take care of before we can start renting. I can't imagine in NJ there isn't some type of form and tax I need to pay before I can rent out the property. Imagine I need a CO or something? Looking for all the forgotten information.. Thanks

We're in the process of buying our first investment property.  We tried a local mortgage broker but he doesn't seem interested on such a small loan so I called quickenloan.  They came back with a required 25% down and an all in estimate of $32,000.  This is NJ so the taxes on the house are $4,500.  But 25% down is $23,750 so its gonna be another $8,000???  Does that sound right?

I was really hoping for 20% down, 3-6 months of taxes, and 3% closing costs = $25,000 max.  Even though Quicken already pulled my credit I'm thinking I need to talk to a different local lender.