All Forum Posts by: David Ferrette

A point is equal to 1% of your mortgage amount (or $1,000 for every $100,000). You’re essentially paying some interest up front in exchange for a lower interest rate over the life of your loan.

The general rule is that the longer you plan to own the home, the more you might benefit from buying points, because you would realize more interest savings over the life of the loan.

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Don't forget to also add PMI on your FHA loan which will run you between .5% and 1% annually on the loan.

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Andrew, I have a few questions:

1. If your purchase price is $160k and your rehab is $60k, why is your ARV $200k?

2. If you are doing an FHA loan then you will need to live in one unit for at least a year. Do you still collect $3k in rent with you living there? If not, your cash flow will be less while you live there.

3.Are you sure you can get a 3.5% loan even if you are paying 2 points. That seems a bit low in today's market.

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Originally posted by @Jared Watson:

Everyday sir.

My partner gave me 6 weeks to finish, I popped off and said "dare me to do it in three"

Now I am paying for physically and mentally but a deal is a deal.

I would like to see some pictures when it is all finished.

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Originally posted by @Polar Prutaseranee:

@David Ferrette: do you need to sign up for the meets? I'm in the Irvine area and would be interested to attend if my schedule permits.

Nope, just show up.

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Joshua,

I would check with the local building department to make sure the city would even allow it.

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Good luck with everything Joel. Stop by the MeetUp in Lake Forrest if you ever have time. It's the third Wednesday of each month.

http://www.meetup.com/Orange-County-Real-Estate-In...

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Joel,

Great to see that you bought a few years back and I am sure you now have some nice equity. Cash flow in Tustin and Irvine can be difficult, are you having much success?

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Originally posted by @Joshua Leite:

Hi David,

If you don't mind sharing - is this deal in Orange County?

No, I am currently only buying in Austin and San Antonio.

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All Forum Posts by: David Ferrette

David Ferrette has started 24 posts and replied 255 times.

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Post: Multi-Unit Deal