All Forum Posts by: Jordan OBrien

@Jordan OBrien...thanks - get both the 90% ltv and 95% ltv scenarios outlined by your lender ..make sure the mortgage insurance amounts are accurate ....compare these total payments and make your decision for the loan amt ....as the property sounds like it will cash flow at 95% ltv - this is likely your best bet ....2) I would recommend conserving your cash / capital if you plan to make additonal property investments ...if you end up not buying any additonal properties - you can always make a large payment towards the loan and ask the lender to recast the payment ( or you can always analyze any refinance options

Thanks for your response, I’ll check with her. I didn’t realize I could ask them to recast the payment as well without refi that’s a good point.

0 Votes

Quote from @Reid Chauvin:

@Jordan OBrien - I'm personally a proponent of putting less $ down. It can be tough/costly to tap into the equity of your home (you either have to get a HELOC, cash-out refi, or sell), so I prefer to keep what I can more liquid. You will be that much closer to having the cash to buy your next house.

Didn't think of that either looks like the consensus is the 5%

0 Votes

Quote from @Tim Miller:

5% down, you'll need that extra cash for the "Oh Crap" just happen. Trust me, when you least except it, the roof gets a leak, the plumber just charged $2,000, the basement flooded. The list can go on but you're starting to see what can happen.

If lady luck is with you, nothing will happen and you'll have that extra cash to put towards the next property.

Good point

0 Votes

Quote from @Aaron Breckenridge:

Are you planning to expand your investments in the next few years? If so, you may want to keep more cash on hand.

Definitely looking to repeat this process. I would like to try to purchase a new home every 12-24 months to start out!

0 Votes

Hi all,

I recently graduated college and wanted to purchase my own investment property. However I do not have enough to cover the 15% downpayment. I decided to purchase a single-family home and owner occupy it for 12 months before renting it out to put a lower downpayment down. I have been transparent with my lender about my plans as well and I will not have to refinance. I am wondering do I put the minimum 5% down or put all of my cash into it at 10% down.

Furthermore I am expecting large stock grants from work every quarter over the next year. Should I put all of this into the property as well so I will have 20% equity before renting it out and get rid of PMI for more cashflow? (PMI $162.50/mo)

At 5% down the property will cashflow $219/mo after mortgage, taxes, insurance, PMI, property management fee, vacancy. ($24,000 downpayment + closing costs)

At 10% down the property will cashflow $319/mo after mortgage, taxes, insurance, PMI, property management fee, vacancy. ($36,000 downpayment + closing costs)

5 Votes

I'm interested if you have any small multi-families! Rochester NY here

0 Votes

I am looking at an older up/down duplex (built in 1880!) It has been sitting on the market for a few months now and needs about $55K worth of work to reach market rents of $2,100/ mo (both units combined). It is listed for $150,000 but the listing agent told me they are open to all offers since it's been on the market so long. I am planning on offering up to $130,000, my thinking is that it will reach the one percent rule after renovations $130,000 PP + $55,000 reno costs = $185,000.

I am worried that my thinking is way off since I am in a hot market (average time on the market is 8 days), and this has been sitting for so long. Should I even be considering a home this old? It is 1700sqft, has a 3 year old tear off roof, and the listing says its Lead & Electric certified (not exactly sure what that means, in the process of pulling permits).

1 Vote

Upstate New York, New York

All Forum Posts by: Jordan OBrien

Jordan OBrien has started 2 posts and replied 7 times.

Post: 5% down or 10% down

Post: 5% down or 10% down

Post: 5% down or 10% down

Post: 5% down or 10% down

Post: 5% down or 10% down

Post: 13 Off Market Properties - How Best to Sell

Post: First Deal - Analysis