All Forum Posts by: Lesley Resnick

I am considering selling this property for what I have in it.  I have just picked up another project and I am under contract on 2 others.  I am stretched to thin for time and money.  It is listed on the market place or you can PM.  Otherwise, I am just going to put it on the shelf for a few months.

If you qualify for down payment assistance, take it.  You will need to owner occupy for a number of years and in some cases, you will have to pay it back.  These programs are not designed to help someone start their investing career.  They are to help lower-income people become homeowners.  You will not make money on it in the short term.  There are too many rules and regulations to allow anyone to make money on these programs.

As far as owner assistance and carry back, you are going to have a difficult time making it work with a Fannie Mae standards loan. That does include VA, FHA. They will ask you to source the money for the down payment. Fining a motivated seller that wants to wait 30-45 days and make repairs to the house passes the mort co inspection, is an unusual situation. There are plenty of investors that will pay cash and close in a week. The market is competitive and finding these kinds of deals has become difficult.

That sounds like a good idea.  Are they available in large sheets?  I only saw tile size at lowes.com

I think your numbers are a bit aggressive. Owner utility on a duplex $100. Most of the duplex's I have run into have their own meter. While I understand using a percentage for maintenance, 2400 a year feels a bit high. Assuming you don't need a roof or A/C, spendings $2400 in a year is unusual. I prefer to take an actual cost approach (cash accounting).  The assumption that I am going to hold a savings account and add 3600 a year per property is not what I would consider sensible approach.  

With that said some lenders may include a hold back in the DSCR (debt service coverage ratio). I cannot explain why or how banks come up with their underwriting criteria They live in a world of Geoffrey Dollars (Toys R Us Reference) . Many solid deals do not get written because of arbitrary rules that may not have existed a few years ago or may not in the future. The real world of RE investing bears little resemblance to lending. Some lenders pull out depreciation from personal income and others do not. Depreciation is only on paper, further it increases actual dollars in your pocket not decreases.

My point is projections are just that.  They can be manipulated to say anything you want.  Add percentages for trash,  utility and landscape and the deal goes down in flames.  There are very few actual numbers available in advance (mortgage & tax, insurance) the rest are only available after the period closes.   

Start with the house you live in. Can you leverage it in some way? HELOC? Could you rent it and buy another etc. Sell it?

 Welcome, this is a great place to learn.  There are tons of people who are willing to help.  The key is to stay open minded and adapat as the market changes.  There are a lot "RULES", just take them with a gran of salt.

I have been installing tile in the showers when I reno my rentals.  It is a bit of a pain and somewhat expensive.  Has anyone used the lowes or HD shower inserts.  They seem affordable, anywhere from 350-900 for the simple versions.  I would have the contractor install it rather than the tile guy. 

You ar looking at lot value.  A 40 year old MH is not going to be woth it.  You can replace it with new for less thanthe reno cost.

The person who was interested decided they wanted a bigger place.  Easy come easy go!