All Forum Posts by: JayCinta Henry

Further, not tasty, info came through about the condo. First it's not warranted, current hoa owner self-owns 40 units, Cap reserves are a paltry 10k and they cover roofing, amongst a myriad of a few other "mine's" if you will. So we passed on that. 

After more reading on BP I see most people recommend going for MFHomes with FHA as a great entry if low on down pay costs. So I am looking for those as well as SFhomes on a great deal. This gives me time to keep accumulating cash as I look.

We do have a rental SF but from here on out next deals will be done BP style. 

I got a confirmation from my RE that this condo is not warranted. There are 131 units, with unknown actual unit owners. The one in charge of the hoa has 40 units owned. As I have now come to know, a number that is way > 10% for banks comfort. There are too many variables seemingly pernicious because the just might be. And a big - I don't have complete control over my own unit. So I decided to pass and look for a multi-family unit but they are pretty pricey in DFW market. Nevertheless, I am open to looking elsewhere.

I thank you all for the time to educate me on this deal. It's glowing testament to the value added by each person to the BP collective.

@Tim Herman, @Lucia Rushton

Ap. for lack of info,

Year built 1986

I plan to rent it out.

"I see a big special assessment on the horizon." 

Please expound on this. (I am new to BP & RE investing, your insights are immensely invaluable.)

HOA covers the usual common area stuff (no pool) plus roofs. This unit has a slight leak stain 1 of the bedroom ceiling upstairs. I am yet to look at that, but inspection will verify.

"I am not a big fan of property that I don't have complete control."

Me neither, so I am very open to walk away if the outlook does not look promising. I plan to talk to new HOA on Monday to see what they have planned. Price is a strong attractant for me to this condo, rent and potential cash flow. And the limited cash I have at hand right now. If more concerns emerge I am prepared to walk away, keep looking for a duplex and try gather more downpay cash, for a next year Jan/Feb deal via FHA.

"Being boarded up next door would concern me. "

Me too, but I am thinking within a year the lender, city or HOA will foreclose on this unit due to unpaid bills/fees. Is this logical?

It's average maintained, somehow surprising after learning about the previous HOA manager. I am thinking the new HOA will get on the horse gradually. It's assigned parking.

My realtor is getting that info this afternoon. Plus one lender wanted to know if it's warrantable and what type of loan it would qualify for, realtor said conventional. What does this mean?

My credit union loan partner said if I qualified, todays rate on 30yr fixed would be 4.25% My fico score is 780/790+ range, revolving cards only. I have a few more lenders I am talking to this afternoon but for now is this a good rate in this market? A fifteen year was 3.75. I was gonna get the 30yr due to a lower payment & pay extra on principle but 15 isn't much of a difference.

I have adjusted my numbers with this, here are the new numbers with 4% closing costs but no PMI estimate for now...

Did you face competition from conventional loan holders? Were there incidents of required repairs by inspectors?

Originally posted by @Bryden Rosenburgh:

I am new to PB and RE investing but wondering ... you mean you can access another FHA loan after just a year on a current FHA loan?

Actually most any bank will list a mortgage app check list. Just check under loans and/or mortgages on any bank website. Then the next best thing is to get pre-qualified or pre-approved, so you can go house shopping. 

Mortgage Checklist

The following information is usually required during the loan process:

• Pay stubs covering most recent thirty days
• Copy of current government-issued ID (driver’s license, passport, etc)
• W-2 statements covering the past two years
• Bank statements covering the most recent two months (with all pages)
• 401K, IRA, or Mutual Fund accounts showing most recent transaction summary
• Stocks or certificates of deposit (copies)
• Purchase and sales agreement (copy)
• 12 months cancelled rent checks or the name and address of your current landlord (if applicable)
• Fully executed divorce decree (if applicable)
• Deed, hazard insurance policy, and most recent tax bill if you are refinancing (copies)
• A letter explaining any known credit problems or fluctuations in income

If you are self-employed, paid by commission, or own real estate used for rental purposes you will need to produce:

• Two years signed personal federal income tax returns including all schedules
• If self-employed through a corporation, the last two years' corporate returns as well as a year-to-date profit and loss statement and balance sheet
• If additional information or documentation is requested, please provide it immediately.

If you are retired, you will need to produce:

• Two years of signed personal federal income tax returns, including all schedules
• Most Recent 1099’s (if applicable)
• Most Recent Pension or Social Security Awards Letter

401k or Retirement Account Statement (if taking distributions)

I am new to BP so just getting into swing of things here. I am in Mesquite TX, and we have one single family unit that's showing to potential renters.

Condo is in Dallas Texas, 2BR, 1.5bath. Few basics are - It's listed for $70k, owner agreed to $60k. Market value should be $70-75 atleast. Purpose is to buy and hold. Owner has done quite some work, painting, new carpets upstairs...What remains is much less and I can do that myself, estimate $500-1000. It can rent for $950 (up-to $985). After factoring in costs cash flow is $207, Cash-on-Cash 13.66 & Cap rate 8.4.

There's a new HOA as the previous one wasn't working. The story is an investor with 40 units sued the old HOA for records that they were withholding from people and actually became the new HOA. I understand that the current reserves are low, just $10k. But I am thinking between last November and December that number must be higher now.

We have another single family home that just got ready for rental. Wife is primary mortgage holder. So I was thinking I will do this deal in my name. Previous lender on this rental says $48-60k is too low for banks to consider. Our primary home is paid off but I would prefer to explore other ways of financing before pulling out equity from our primary only as last resort. What financing options/ideas would you consider?

The unit on the left is boarded up, with a code violation posted. My realtor had tried to contact the owner with no response. I like the numbers and the unit. But I am guarding against emotional attachment should HOA & boarded next door be an issue.

I plan to talk to HOA manager this week. Also should I buy this unit I will contact owner of boarded up unit next door and offer to buy it.

Is this a good deal? why not? What would be the concerns of HOA that you would have, and boarded up unit next door? Would this be a deal breaker?

Hey guy, new to BP, new to BP style investing. I have been glued to this site since day 1, 3 days ago. I have learned so much and I keep learning and then there's more and I am jacked up, stoked up and my cylinders are all firing up. 

We just completed rehabn a SF unit (did the work myself) that's showing for potential renters. I thought we were gonna do the usual thing pay this property off in 3 years (it's a 15 year fixed) and then thereafter, buy another one, and on and on. But BP has opened my eyes to a whole another way of real estate investing that in the same 6 years I could have as many properties as I can count, generating cashflow and accomplish other goals such as retire from 9-5, etc. 

I am looking to meet and network with other BP REI here in the DFW area. I would appreciate any info on that.

Before I stumbled on BP I was planning to acquire a property in January 2020. In the past one week some gods have conspired together without my knowledge-somehow my realtor calls me about a condo, and BP stumbles into my life and my gut feeling says go for it now. So I am sourcing for financing. I need help to look over the deal and for that I will post in the buy sell forum section but here is a quick run down .... 2br 1.5, the unit is on the market for 70k, owner has agreed to 60k rent market is at least 950, cashflow is 207, Cap rate 8.4, cash on cash 13.52. The owner did the larger repairs - new carpets, re-did bathroom,  painted. It's got a few minimal repair needs which I will do myself, cost 500-1k (replace kitchen sink cabinet floor, water pan for water heater, install master bedroom closet door, off craigslist Stove, Freezer, Dishwasher @250, and done! And ready to move on the next deal!