All Forum Posts by: Jessica C.

Also the property will not be owner occupied (meaning no FHA or USDA). Also I am eligible for a low income loan (but my father is not).

I am located in Massachusetts, I am wondering if anyone has found any good mortgage loan rates. My partner (father) has excellent credit, various properties and will be the one taking out the loan with me. I would like a 30 year loan but would be able to do a 15 year.

Thank you! :)

Thank you all! This whole site is great! I think after all your advice, I have will probably pass on the property. I think it may be to much for me to handle. It will probably be wiser to get a 4 family so I can use the FHA loan and wont have to use all my savings. @Tom Goans your right I should start small! My problem is I LOVE old houses so I am going to be attracted to older houses that need work. lol I just need to keep reminding myself "its an investment" haha not my actual house! Thanks for all your help!

@Ned Carey and @Ellis San Jose Thank you! I will run the numbers with the 50% rule, do you both agree the best form of financing would be a commercial construction to permanent loan? versus a collateral loan? Or is there another form of loans you'd choose?

@Ann Bellamy Your right, (I think)! My family owns a cottage in the town next to it so its not to far for me I'm used to the drive. And yes I am going off the expenses listed on the sheet I have from the realtor. Your right, I am concerned about financing. Hopefully I can figure it out! Thanks for your advice!

@Ellis San Jose and @Ned Carey thank you for your help! The expense cost I got are from the realtor and those were the expenses in 2011 when the units were all full (before foreclosure). Each unit is paying their own electric, 3 units have electric heat, two are on oil. The expenses for 2011 break down to this per year:

Advertising- $221

Cleaning-$397

Insurance- $2770

Legal: $177

Repairs- $1205

Supplies-$425

Taxes-$3327

Utilities-$161 (we are only paying for two lights in a common hallway

Rubbish $1055

Water/Sewer-$1985

Snow removal- $110

Water heater rental-$156 (now water heaters are new)

TOTAL $11,989

@Darrin Carey thank you also for your help!

So I have been trying to get into real estate investing and have decided to take the dive, I have researched and read various books however its one thing to read something and another to have experience. Thats why I NEED your advice!

I am interested in buying this property it is a 5 unit (4-two bedrooms and 1-studio). It is listed at $125,000, the rents I would get per month are (all units pay their own utilities)

INCOME: rent1 775 rent2 775 rent3 750 rent 4 750 rent 5 400

TOTAL: 3450 a month or $41400 a year.

EXPENSES (all expenses including taxes, not mortgage) =

TOTAL: 999.08 a month or 11989 a year

So far the deal seems good, but the HUGE problem is figuring what to do about the mortgage. Do I go commercial? or Do i use a FHA 203k to convert the 5 unit to a 4 unit to get the lower interest rate and down payment. Or I was also told I could use a collateral loan to get the funds at a lower interest rate and longer term.

In summary I have MAX, 30K to put down. When it comes to a collateral loan my father would take it out for me and he owns enough property to get one (not multifamily). Also to note the units need some work a high estimate is 80K (should actually be around 50K, but you never know what you may run into) I am hoping to get a deal on the 125000 asking price because it is a foreclosure.

Any Advice on loans?