All Forum Posts by: Jason Hillier

Thanks @Albert Bui , since this is an investment SFR, are the reserves requirements only for 6 months PITI of this loan, or will they also require reserve amounts inclusive of other mortgage/rent payments I have obligations on?

Thanks for your help!

Hi mortgage pros,

I bought my first fixer-upper with cash, now that the remodel is nearly complete, I'm looking to get a mortgage on the house. I'm wondering if cash reserve requirements apply to me? Once the loan closes, I would have plenty of cash, so I was wondering how my current liquid assets are factored in to the mortgage application.

Thanks!

Thanks Robert, I appreciate your answer!

Hi BiggerPockets!

New investor here, I hope you can help me clean up this mess! I'm just finishing up a remodel on my first property which I was originally planning to flip. At the time, my brother and I created an LLP for the property, as a partnership where we would both share in profits (he provided labor, I provided cash). This was before I had obtained the services of an accountant to keep me from making making mistakes like this! Anyway, I've decided I want to retain the property for myself as a long-term rental. However, to get a mortgage, and claim tax benefits in my own name, it seems that I would need to do a quit-claim deed to put the property fully into my name (currently both my name and the LLP entity are on title). However I've also read that I would lose title insurance on the deed, which would make it difficult to get a loan. I'm not sure what the best thing is to do.

My accountant said he could work with it either way, but couldn't advise me as far as specific legal/mortgage loan requirements go. Hopefully someone here can give me a little guidance! Thanks!

Hi folks,

New guy to real estate investing here. I've spent the last few years getting my finances and credit in excellent condition so I can finally get into real estate. Living in the Seattle area, I've had difficulty finding property that meets my investment criteria (for starters, good condition with good cashflows). However, out-of-state is showing many promising leads. Obviously, being an absentee landlord brings additional risks. Recently I've noticed some listings that seem interesting in that the community has a property manager with an onsite leasing office. It seems to me this type of setup could simplify things, and might be a good way to go for a first property. But I'd be grateful for advice from someone with more experience.

Here's an example property:
4-plex, 2bd/1ba units
Asking Price: $170k
Rental rate at leasing office (other identical units) is currently ~$575/mo.
Realtor summary shows estimated gross income at $28k/yr, estimated NOI is about $18k/yr

Both property and the community look to be well maintained, HOA appears healthy.

Some readily apparent risks:
*With 25 other identical buildings, it may be competitive to find tenants. (e.g. It seems to me a larger owner could influence the manager to direct tenants towards them and away from my property)
*The property management company has a terrible website, and it begs the question how competent and reliable they may be
*It is my understanding that I pay the management fee regardless of vacancy, however I'm not sure on that, perhaps someone who has had prior experience with these type of communities could tell me how they are normally structured.

I apologize if I don't quite have the RE vocabulary down, but hopefully you folks can provide some advice and help me get my start in real estate! (and hopefully I can contribute when I have gained some experience!)