All Forum Posts by: Katherine S.

I am smacking my forehead for not thinking of this myself.  

Expand it to homes and I think it's a winner.  PM me if you'd like the perspective of a wheelchair user.

My husband and I tried to purchase a 2/1 SFH earlier this week from a flipper. It is in move-in condition, could be put on the rental market the moment we close, ties up very little of our funds, and fits our performance parameters. A no-brainer. We put in a full-price offer, with only financing and inspection contingencies. The financing contingency was included only because I wasn't sure our lender would write a mortgage that small. We offered $5k EMD for a house that lists for $54,900 to show that we're serious.

The seller responded with the attached nine-page Addendum.  I'm interested in what the BP community thinks of this addendum.  I'm not an attorney, but it seemed really problematic to me.  

What problems and or concerns do you have with this?  

https://www.biggerpockets.com/files/user/Katherine...

@Robert Gunby Hi Robert, what is your plan for this house?  Are you planning on renting it?  Flipping?  House hack?

If you were planning on living in it, even for a relatively short time, you could consider an FHA 203k renovation loan. You'd only have to put down 3.5% (or thereabouts) and will get money for the renovation. The loan program is a PIA, with all the hoops and rules, and I wouldn't do it again, but it was perfect for my needs when I did use it. Your payments will be higher because of the PMI, but if you successfully rehab the house and force appreciation, you may be able to refinance at 80%LTV and get your original investment back.

One suggestion I have going forward...know where the money is going to come from before you make the offer!  Good luck!

@Sarah Karakaian Sorry, I misunderstood that you're asking for yourself! Talk to your CPA and find the best way to do this. And keep us posted!

@Sarah Karakaian Funny, I was just talking about buying an RV today, although not to live in full time. Ever since I was confined to a wheelchair in 2005, I haven't traveled too far from home. We used to live on a boat during the summer, and because I had my own business, we were able to write off a portion of the boat as a second home office. I was thinking that we could get an RV, paid for by our real estate business, and write off expenses because we of course would be traveling to research potential real estate purchases! Or go to a conference, or whatever. This would allow me to travel, as I'd bring my specially designed environment with me. We'd probably want to tow a vehicle, but if your folks have a 5th wheel, they'd be all set.

As is the county's register of deeds.

@Mindy Jensen Could you describe how you structure a deal using your solo 401k?  

Does having a HELOC on an investment property impact the "10 investment properties" rule?

@Carlos Rodrigues Carlos, do you anticipate doing a cash-out refinancing in the future?

@Patrick Boutin Patrick, you don't have to take out a 203k to only put down 3.5%. You can do that with a regular FHA loan, and get your renovation funds elsewhere. I bought a home in 2009 with a 203k, and it took forever to close, so I can understand the reluctance to present offers with that as your financing. If the house hadn't been on the market for almost 2 years with no other offers, I think my sellers would have not granted the third extension.