All Forum Posts by: Jason Wray

First off I would ask if there are other unit in this condo association selling for more than what you paid? If not doing $15K in renovations may not help you with the value. When you buy a condo and do renovations its not the same as buying a detached property like a SFR or multi-family. The appraiser is only going to give you value based on the other units selling in the association. So if there are higher sales but they are for larger condos in GLA/SQFT & Bed/Bath count, renovations will not increase value. Just make sure you are looking at apples to apples in terms of what you put in and what you get out.

Right now you have no equity in the property and if you put more cash what is the new ARV? You might want to wait the 6 months title seasoning and see if you can convert over to a conventional loan to use FHA again before sinking in another $15K in personal credit card debt. There is no equity to borrower at 96.5% LTV so you would be looking at unsecured lines of credit if you have over a 740 Fico and steady W2 income its possible. The other issue is if you do not convert over to conventional your in violation of the FHA 12 month occupancy rule....

Check it out good news for LTR/STR/AIRBNB investors who own real estate especially in Florida. The Vinoy Hotel in Downtown St. Petersburg has hit an all time record standard room $1000.00 a night! Other Hotels and STR's are booked through the year with small openings based on fall out only. I am excited about this because in my area and Nationwide this opens up more confidence in the purchase market. Don't be afraid of the rising rates that are due to the Feds attempt to slow down the hyperinflation! Cash flow is key and this is a little foreshadowing to give us REI some insight to the future.

Lending is also opening up its guide lines with Non-QM loans being offered since 2022. Lower down payment for Multi-family homes on DSCR programs, Bank statement programs for both new investors and help for self employed borrowers with less then 1 year 1099. That's right less than (1 year) not 2 years with these new Non/QM loans and DTI is getting stretched to a big 50% on back ends. That is a huge amount of wiggle room on some of the new loan programs being offered for investors.

Please note I am not advertising I am sharing some exciting news! 

Stanton,

I am in the St.Peterburg area closer to the Gulf Beaches. St.Pete is great and there a lot of places to have an STR for example Downtown St.pete is now alive and jumping! New Waterfront Pier, New Restaurants, New Cafe's, Close to the St.Pete Clearwater busines district and airport! You would be surprised at how busy the STR's are in this area or in Pinellas County in general. You also have Seminole, Largo and Clearwater all within minutes of the Gulf Beaches and are all dynamite STR/LTR opportunities.

There are so many great deals here on a daily basis just need to have some good connections.  Lean on me if you want to Network!

Do not buy it if your planning on getting financing or ever plan on selling it to a person who will require a loan. Manufactured/Mobile homes cannot be transferred from one proprty to another and receive traditional financing. They must arrive from dealer with HUD tag and on axles. Which then are required to be removed (Axles) and adhered to a permanent foundation (concrete slab) and depending on state hurricane tie downs and concrete pillars. Must also be a double wide or larger (for traditional financing).

If its just to get a mobile on a property for personal use or rental - I woudl still suggest checking into new build.

Carlos,

You can use cash out as reserves when the lender you are using doen not have overlays. Meaning if they require the funds to be "Sourced & Seasoned" they will not be able to use the funds unless you have had them in your checking/savings for what they reuire 2-3 months. The more imprtant question is how many months reserves do you need for each rental properties PITI payment. Another words do they require 2, 3, 4, 6 months per property because some lenders now since COVID have funky requirements.

As with some lenders you can lso use 401K, Life insurance, certain stock/bonds, crpto ect...  Find out what they "Can" use and offer a copy of each account.

Have you looked into the NH Market by Nashua or Mnachester close to the airport for the business district rental STR and for the middlesex colleges and schools? Property Costs are lower and there are No Sales Tax in NH!

Fred,

Have you checked with your Co-op to see if they will allow and sign off on the HELOC or cash out refinance. You are in a tough spot because most lender do not touch Co-ops and look at your situation as a Non-warrantable condo. The Co-op Board is the reason why most lenders do not deal with them because they set their own Co-op rules.

Greg,

We are in a cycle as usual and it will not really break until 2024.  You are going to see higher rates due to the artificially inflated real estate market that stemmed from COVID.  People were scared and decided to pull money out of stocks and buy more real estate.  You had more people moving out of the North East and in general and selling their homes to then go and buy all cash and in most cases above ask setting new markets.  Any time the housing market starts to bloom the government gets greedy and wants a bigger piece of the pie.  So they hedge up on rates and LLPA/GSE fee's so that the banks have to charge higher rates.

This is all politics and unfortunately this new party is hammering Gas prices, Interest rates, food costs, etc...  Its not hard to go back and look at the previous (4) years and see rates were at an all time low.  We also had a well balanced market growing at a realistic rate.  I would not hold off on buying especially if you own any real estate now that holds enough equity to take out some cash for a Down payment.  Just stay frugal and buy smart not getting into something that needs a ton of work that will hurt your pocket.

Gail,

Here in Florida we have been slammed with STR and AIRBNB business helping REI make a ton of cash! There are a lot of cities in Pinellas Count for example that are still very reasonable for purchase deals. Because Pinellas is on the outer most part of the Gulf of Mexico side its a natural attration to tourists and business travel. You have Largo, Clearwater, Seminole and more all loaded with SFR's and Duplex options. Cash buyers are having a easy time landing great deals with quick TLC turn around to rent.

There are also a lot of homes that will pass an appraisal and going for reasonable prices for financing as well.  We have not shortage of managment companies and excellent realtors.  I would be more than happy to offer some names of realtors if needed.  Just message me...

Steve,

You can use FHA for renovations under the 203K loan and all of the renovations is covered under this program. If the home can pass an appraisal where it is not listed as "Subject to" meaning subject to certain repairs before the appraiser can complete the report giving value. You can go FHA and just do the TLC work after you close with your own funds or a HELOC.

In mot cases a home will not pass inspection if it has termite damage, exposed wiring, outdated breaker box, Mold/water damage, major roof damage or anything that would be considered a health hazard or Safety issue. The home must be live in ready or only require minor repairs for cost to cure remedy. You can also offer to do the repairs and the appraiser can come back out finish the report and FHA will fund and insure.