All Forum Posts by: Horace Grant

@Chris Davidson current rent is around $1200. the rent with this place would be $1600. 

It's an an ok neighborhood. Not the greatest but not the worst! I could get a roommate though it would cramp my style a bit. 

There would need to be probably be a lot of work to get it up to market rents like new flooring, and painting the inside and outside. 

I like the space of the property but it's a bit far from my work. 

Thanks for the help thinking about this!

7 year ARM rate is 5.625% and 10% down while the fixed is 6.5% and requires 15% down.

I’m located in a competitive market and am wondering if this is a good deal. The current cashflow is poor as the other side is rented for $1200. Market value rent is $1500-$1700. What’s intriguing is that it’s an off market deal and the assessed value is greater than the purchase price.

Purchase price: $357k

Assessed value: $386k

Loan: 7 year ARM at 5.625%

Initial cash invested (10% down payment and closing costs): $42000

PITI: $2800 (property tax is around $8300)

Capex: $500

Potential rent: $3000-$3500

Potential cash flow: negative $300 to positive $200

Current rent on tenant side (lease is up September 2023): $1200

My responsibility (without capex): $1600

Not sure what to do here. I mean, the cashflow numbers make it pretty clear that is not a good deal. However, there would be instant equity built.

What do you think? What am I not thinking of? What would you do?

I am hoping to bequeath my primary residence to my daughter upon my passing. I met with an attorney who suggested that I just put her name on the deed thus making her a "joint tenant." I was wondering if this is the best way to go about passing along my primary residence to my daughter? How do you have your primary residence set up to be passed along to your heirs?  

I was wondering what software/website/resources you use to look at homes that have recently sold? Or for running a comparative market analysis?

Wondering what the best online application system is for tenant screening?

Looking at a house located in Western Michigan that has cedar siding with paint that is peeling off/at the end of its life. Wondering if it is worth it to repaint? Or just switch to aluminum siding? I am hoping to buy and hold for at least thirty years

As a real estate agent, are there any red flags I should be looking out for when finding prospective buyers? Are there any buyers that you wouldn’t work with?

@Will Fraser thanks for the advice will! Though I have to admit I’m confused. Option 3 is a 30 year loan. Is there a difference between that and an amortized loan that you mentioned in option 4?

I recently put a 3bd/2ba and 2bd/1ba $335k duplex under contract to house hack (owner occupant) and I'm wondering which loan option to choose. I have $90k in cash. I will rent out the 3bd/2a unit for $1500/month. Estimated monthly income = $2800/month after I move out (I know this doesn't meet 1% rule but it was the best value for the market I could find. It's a B-class, turnkey property in B-class neighborhood). Monthly capex/maintenance/vacancy = $375/month.

My options are:

1. 0% down 5-year ARM at 3.75% interest rate = $2300/month PITI ($5k out of pocket)
2. 5% down FHA loan at 2.875% interest rate = $2300/month PITI ($23k out of pocket).
3. 15% down conventional at 3.125% interest rate = $1950/month PITI ($56k out of pocket)

Initially, I wanted to go with the 0% down ARM. However, I am not sure if I will be living there for more than 1-3 years as an owner occupant as I have a girlfriend who lives 60 miles away and don't want to have to fork over the 25% equity in order to refinance as non owner occupant if I were to move out to her. I was thinking of doing the FHA so I'd be able to keep $33k ($56k - $23k) in my pocket but also not having to worry about refinancing. The only downside with this is that the PITI payment would be the exact same as the ARM. But then I thought I may as well drop the extra $33k to get a lower monthly payment and improve cashflow.

What would you do if you were me?