All Forum Posts by: Sophie Mia

Hi everyone,

Let's say I want to buy a property with the 3.5% down payment FHA program which would leave me with a large amount of mortgage insurance to pay every month.

If I buy the house under market value (let's assume 75% of value), how difficult would it be to refinance the property a few months after the purchase using the equity in the house? I would go for a 25% conventional loan without PMI.

How many months do I need to wait for a bank to be willing to do a new appraisal and use that appraisal for the refinance (vs. the amount I paid).

I understand that there would be additional closing costs etc but even with those...putting only 3.5% down and then not paying PMI after a few months would be quite a steal.

Has anyone done this before? Have you encountered any issues?

Thank you!

Hi everyone,

So the scenario is the following:

Option A - buy property #1 with 25% down as an investor and make about $650 in cash flow.

Option B - buy property #1 with 3.5% down as an owner occupant and make about $300 in cash flow. Buy property #2 with 25% down payment as an investor and make about $350 in cash flow. cash flow for both properties would be $650.

Due to the fact that property #1 is about twice as expensive as property #2, the 25% down payment would be about the same as making a 3.5% down payment on property #1 AND making a 25% down payment on property #2.

My calculations also include closing costs etc. Basically my upfront costs and cash flow would be the same for either Option A or Option B. However, I would obviously build more equity since I would get two houses AND after 30 years, when the mortgage is paid off, my cash flow would be a few thousand more...

On the other hand, I would have two properties to worry about and not just one. Property #1 is a triplex and property #2 is a duplex. This would also give me 2 mortgages vs 1 which in the future might be a problem when I try to buy more houses.

Hello everyone,

I am currently in the process of buying my first multi-unit (2-3 units) in Philadelphia.

I was wondering if anyone has recommendations for a good inspector as well as contractors (for repairs in the rental units) and property management companies. I am mainly looking at properties in West Philadelphia (19143, 19139).

Thank you!

Hi everyone,

I am looking into buying a duplex which shares the same gas heater as well as electric.

How difficult and cost intensive would it be to separate those? The downstairs unit is a 1-bedroom, the upstairs unit is a 2-bedroom, and the overall square foot measurement is about 1700.

Also, what would my options be? Could I just buy a second gas heater and connect it to the appropriate pipes? Would I need to convert one of the units to electric heat (I'd rather not since electric heat is a lot more expensive)?

I'd appreciate any input!

Thank you!

Hi Brett!

I make enough money at my job to cover mortgage, taxes etc even if there was a vacancy. If I waited about 6 months, I could save enough from my paycheck to pay for the 10k in closing costs and taxes.

Has anyone tried a hard money loan or something similar to a pay for closing costs? I would be able to repay it within just a few months. However, I heard that lenders require proof of funds...so not sure if a loan for closing costs would be acceptable?

Hi everyone,

I am currently looking to buy my first investment property. The property which I'm looking at is a duplex and I have just enough to pay 25% down payment. However, it seems like there will be about $10k in associated closing costs (tax escrow etc).

I'm not sure how I will come up with the closing costs. I heard that seller assist is capped at 2% for investment properties. Is there any other way to have the seller assist me with closing costs/down payment?

Owner occupancy is currently not an option for me, so I will definitely have to go with an investor mortgage...

Any other suggestions on funding the closing costs?

Thank you!

I currently live in Philadelphia and am looking to buy my first rental property. There are some good deals in this area and the suburbs (easy driving distance). I could get a duplex/triplex for around $100k.

However, my plan is to move to California (San Francisco/Bay Area) sometime this summer/fall for work. So I would only be in the Philadelphia area for another 6-8 months.

I've been reading a lot of posts/advice about how you should invest in real estate once you're settled somewhere and able to handle the properties in close proximity. However, I am well aware of the prices in the Bay area. While I may pay $100k for a duplex in Philly, I can easily pay more than $1MM for a similar property in San Francisco. The rent prices definitely do NOT make up for that price difference. I also do not really have enough money saved up for a 20% down payment on a $1MM house....

Has anyone been in a similar situation? What would you advise me to do? Should I wait until I get to California to invest? Do you think it is doable to invest in Philly, find a good property as well as tenants while I still live here, and then maybe get a Property Manager when I move away? What are your thoughts?