All Forum Posts by: Evelyn Roper

If you refinance, you wouldn't get 100% of the appraised value out.  Assuming you got 75% of the appraisal in refinancing, you would refi for  $114750 minus closing cost (which would likely be upward of $5000.)  Your cash out after the note payoff would be only about $5000 if I did the math correctly.  

 If you sell, you will pay a 6% commission which would be 9180.  If the buyers are paying all other closing costs you would receive about $39720 at closing. If you have not lived in the property for 2 of the last five years, I think you would have capital gains taxes. If it has been your primary during that time, you would be in a much better position.

There really isn't enough information in the post to determine the best option. How much is the PITI per month? What would cash flow be as a rental? Does it have deferred maintenance or do you expect that any major systems will need to be replaced any time soon? What are your goals for REI?

I am not the most knowledgeable but those are things I would look at and do the math on before making a determination.  

If a realtor brings a full price offer with no contingencies, you can be held to the contract and made to pay the commission even if the deal doesn't close.  I haven't ever been in that situation and one would hope that it didn't come to that but there is that possibility. Just some things to think about.  

If you can sell it and make down payments on two houses that cash flow, you might be in a better position but it all depends on what you are aiming for.  Good luck @Chad Wells

@Paul Choate (?) has posted about REI meetings in the last few months. I believe they get together in okc once a month. I set my Keyword alerts to let me know when "Oklahoma" is a topic discussion in the forum posts. That is how I was directed to this post. You might want to do the same on your dashboard. Welcome to the stie. Great info here!

@Russon Smith  I called my regular insurance agent (he holds my vehicle and primary home policies) and he was able to get a renovation policy through another carrier to cover me through our rehab.  I believe that "renter's insurance" is paid for by the tenant if they choose to purchase it.  When I insured my investment property, I just told my agent what I was doing, what I needed the home to be covered for and he directed me to the policy that best fit my needs. We have a long history so I trust that he has my best interests in mind.  I do not have much experience with rentals (yet) and I am sure that other investors would be able to give you more insight but I would recommend starting with an agent that you have a relationship with and trust enough to cover you vehicles.   Have them explain to you what the policy covers and what the limits are.  Then try the yellow pages and call a few more agents to get a good idea of what that policy will cost.  

With FHA (at least in Oklahoma) the insurance premium is added to your monthly mortgage payment and you are required to pay a full years' of homeowners' premium at closing. I hope this helps! Congratulations on going for a multi-unit for your first property. I think that is a great plan...especially at 20 years old :)

Did you purchase Title Insurance when you closed?  I have never dealt with this but I was assured by my title company at the time of closing that Title Insurance covers things such as this.  It seems like something they should have caught.

This is great information from both points of view. Thanks for sharing :)

Welcome!  This is a great site for learning the ropes!  I am also from Okahoma and love that we have so many investors from our state on here.   

Can you pay the rent into an escrow account until it is fixed?  I have heard of people doing that but I don't know the particulars of doing it or if it is legal in your state.

I don't think that a bank will loan for any amount above the contracted sales price.  You could ask for the seller to give you a credit (cash back) in the contract.  However, I wouldn't be comfortable taking out a loan if I didn't have several months of payments in reserve whether it had a tenant or not.  What happens when you get a tenant that you have to evict?  Or when someone causes major damage to your property and it needs repair before it can be rented again?  I would recommend saving some money before you get a loan.  You don't want to get in a rush, get foreclosured on and set yourself even further behind.  This is just my opinion but I only own one rental so don't have much experience.

 @Robert Nason. Is there anything in your area for 30k?  Anything habitable for under 100k?  If so, I think it would be raw land or really scary!  An interesting post would be "What can you buy for 30k in your area" with people from many different states uploading pics.  We do have lower home prices but we also experience lower wages than most other states.  I believe a teacher with a bachelor's degree only makes about 40k a year here.  As I understand we have the lowest teacher pay in the nation.  Property taxes are cheap but insurance is high because of all of the tornadoes!

@Dolly Caswell I grew up in Kotzebue and lived in Anchorage a few years of my adult life so I know exactly what you mean about the discrepancy between prices in Oklahoma versus Alaska.  One brother just moved from Soldotna to Oklahoma a few months ago.  He can actually commute BACK to Alaska for his job and still live cheaper than he did when he lived there full time.  He works 4 weeks on/2  off at Red Dog Mine.  I rented a 2bed apt in Anchorage in 1999 for $950 a month.  In Oklahoma in 2016, I could probably get a 4 bedroom house for that amount.

@Bob Bowling What will 30k get in Honolulu?  An empty lot?  Anything?  I do realize you invest mostly for long term appreciation.  I don't think Oklahoma is a good area for long term appreciation.  You could get an upside swing in a few neighborhoods (but not many) and appreciation will be slow.

@Account Closed I can't speak for the market entirely but I can say that here in Oklahoma, many people (homeowners) will not buy on "potential" They want a home fully renovated and ready to go. This home was purchased with cash which would disqualify many buyers right from the start. Homebuyers want to be able to finance with a low down payment and this house would not qualify for a mortgage when we purchased it. It will when we are done. I regularly see foreclosures that sit on the market for months on end and sell well below the amount a bank is asking for it. I think the fact that these homes do not qualify for FHA puts a real damper on the buying pool.

I see others comment on other posts that they would not buy "a job".  That, however, is exactly what we were looking for.  My husband and I both come from construction backgrounds and we feel that we can make this house profitable for our family.  It took a long time and a lot of searching to find a home that we were comfortable taking on.  Many that we have looked at had too many "issues" or were too far from home for us to feel confident about.  

This house is about a mile from our primary home so I am (hopefully) pretty well educated on our market here. I have lived here for the last 7 years. I have seen a larger number of foreclosures lately, due in part (I assume) to the downturn in the oil and gas industry.   Part of the issue also lies in the fact that many people are irresponsible with their personal finances.  I know people with no real education to speak of that made around 100K a year in oil and gas (during the boom) and they spent all of that money frivilously.  They have $30K cars, $500 phones, the newest gadgets and technology but are now without a job and have no real assets to speak of.  They assumed the money they were making would always be there and now it is not.  Oklahoma's market will pick back up eventually but I never will expect the kind of growth you experience in Honolulu, Denver, San Diego, etc.  But in small town Oklahoma, you can find these types of deals on a regular basis!