All Forum Posts by: Juan Nunez

Now lets see if the offer gets accepted by the bank. I must say that the advice you and others give on this site make much more sense than the opinions from "investors" and RE agents here in RI. I wish I had discovered this site before I had purchased the home I live in now.

Thanks for your response Jon. With the Cash on Cash rate of 19.4%. Is it correct to say that it would take about 5 years to make your investment back?

I need some advice. I just placed an offer of 75000 for a 3 family house. I really feel uncomfortable investing so much of my own money. I have the cash to do this but I'm thinking about getting a HELOC off of my 1st property to fund this. Does this look like a good purchase?

Price: 75000 at 6.3%
DWN PMT: 18000
repairs: 30000

per month
rental: 2400.00
Insurance: 100.00
Tax: 283.33
Maintenance: 240.00 (10% of rental income)
water/sewage: 90.00
vacancy: 133.00

Should I pull money from my Heloc and deposit it into my checkings? I am about to close a deal this Monday, but I am worried about my HELOC being reduced by BoA. If they do I will be left without funds to fix this Property up.

I dont know where to post this. I just want to get things off my chest and move on. I'm a little pissed off.

I just had a terrible experience at a closing this evening. I postponed everything until Monday because the legal description of the property was too vague and did not specifically mention that I am purchasing two lots. Of course I made the mistake of signing the purchase agreement which only specified 1 lot instead of 2. At the closing the Lawyer which I thought was representing me seemed to be good buddies with the seller agent. He pressured me into signing and actually stated the fact that if I don’t I will lose my deposit. He even looked at his watch and said he had a “pick up to do shortlyâ€. I felt like I had to fend for my self. So I said “I will not sign anything if there is no specific guarantee that both lots will be includedâ€. So…after an hour of useless wordiness from the lawyer, he decided to go to city hall on Monday and look at the county records and add an addendum to the closing documents. This lawyer was clearly not looking for my best interest. He did not care if I got stuck with only 1 lot. I know I made the initial mistake but isn’t the lawyer there to look out for your best interest? I had to literally raise my voice and say “I WILL NOT SIGN “ for the lawyer to do his job.

Rookie mistake # 1.
Donot take a realestate agents word that “things will be fineâ€. Make sure its all in writing before you sign.

If you go to the hud . gov website you will find links to tenant rights for you specific state.

Thanks for your reply Michael. This is how I calculated my expenses...most of it goes toward property taxes which I looked up on the city tax assessor website. I also calculated my expenses to be 20% of Gross Potential Income. I am trying to look at this from a worst case scenario.

Gross Potential Income: 2,250.00
Expenses:
State Tax 416.67
Vacancy / 1 mth 175.00
Insurance 133.33
Water/Sewage 90.00
Maintenance @ 20% 450.00
Total Expenses: 1,265.00

Net Operating Income: 1,025.00
Mortgage: 741.50

ok so the post did not come out as pretty as I had hoped. Everything after Rental income are devided into 2 monthly and annual columns...

I cannot go for this without first asking here...This looks like it will cash flow but I must keep in mind that I have to repay that HELOC or Refi in a year and cash out if possible.

Price: 123,500.00
Down : 3% 3,705.00
Closing Cost: 1490.20
Repair (Heloc at 5.24)% 20,000.00
Out of Pocket: 25,194.20
Mortgage Rate: 6.30
Rental Income: 2,250.00
Monthly Annual
Gross Potential Income: 2,250.00 27,000.00
Total Expenses: 1,265.00 15,180.00
Net Operating Income: 985.00 11,820.00
Debt Service:
Mortgage: 741.50 8,898.00
Cash Flow: 243.50 2,922.00

I also heard that banks were cutting credit lines. I am thinking about pulling this money out while I still have a chance.