All Forum Posts by: Matt Turbitt

it's never too late for passive income, especially with retirement not far off. I have family a few hours outside of Perth and they say the Australian RE market is hot hot hot so it seems your in the right place.  Would you invest there or the US?

I think you add the washer and dryer but for 2 reasons that haven't come up yet.

1. Worse case it goes really bad and you don't renew that option with the lease next year.

2. It's a 1 bedroom. If it was a 3+ Bed then sure, they are a family and should have their own units but with a 1bed your going to have 1 or Max 2 people, they won't do much laundry and that's a larger expense for 1 person to bear vs a family.

does your lease currently have anything in it about leaving the place in the same condition they started with? 

And a 2 or 3 person cleaning crew can have it turned around in a few hours and ready for the new tenant. This also gives you an actual bill to charge against their security deposit and reduces your risk.

Have you talked to multiple regional banks? Any brokers? the 2 yr rule is more of a guideline. Banks still understand the people move, change jobs, get promoted and that's just the way of life. Normally of they are actually saying no their is something else. Are you maxing out your dti? Are you self employed?  Is their a drastic difference between your old and new job?(used make 30k and now make 100k and want the loan on 100k?) 

Is the house causing any issues with the process like not having utilities? 

What would be your plan for buying w/ cash?

The short answer is yes, a refinance can be easier then a purchase and presents the option to leverage your LTV to get the deal closed.

12% + 2 points is a pretty common one and what I'd ask an investor for to start/build the relationship. 6 months is common, it should only take 3 but it allows for that wiggle room should their be any delays, issues, large rehabs, permit issues, long closings. You'd rather be paid back sooner then you thought then expect to be paid in 3 and have it be 5.

the market decides what houses are worth. Most homes if you had them appraised my 5 companies you'd get 3 very different numbers. As much as corners and main drags are a pita someone lives on every corner and most main streets in every city...

I'd run the rental calculations and see if worse case you decide to move in the future it atleast cash flows. Then offer them 175-200 and see what they come back with. 

Personally, we lived on a main drag to a neighborhood and quickly got sick of the high traffic, fast traffic, and the safety for our 2 kids. We moved close by to a court instead.

search on here for the brrrr method. This is basically the starting principal to many flips and rentals. Buy a house with cash so you appeal better to the seller, rehab it, rent it(get it cash flowing), refinance it to pull most to all of your money back out, then repeat on house #2. 

Most banks will give you a mortgage based on the sales price immediately after you buy it. Most also want you to wait 12 months before you refinance and cash out based on the after repair value, but some banks just want 6 months and a few even less then that.

The lender will need to be able to turn the water on at facets and flush toilets. Every hud house will tell you if you can turn on the water in 2 ways, one call the listing broker and they will confirm ye or ne if you can fill out the form, and turn the utilizes on for a few days. 2. Is the condition report that will list if the pressure test held or failed. Most of the time they fail. This forces an o/o (or even an investor) to use cash, private lender, fha 203k, fha w/ repair escrow, or a portfolio product.

You have a few  days still the back out if you can't make it work without losing money. But you need to decide if you really want this house...

If so, do 2 thing's, 1 ask your lender if you can escrow for the plumbing repairs. 2. Go start looking for a small local lender that has a portfolio product that doesn't care if the water is on or not.

Keep in mind most Huds were vacant 6 months to 4 years before they were winterized. So the antifreeze normally means almost nothing. If bought Huds where the plumbing was perfect and only disconnected, and I've bought houses where the <20 year old plumbing crumbles in your hand.

luckily I'd assume it's a city code violation there to park in the grass so atleast it's already a violation so while it's always good to have things in lease atleast govt>lease

your ARV is whatever the market can bear aka the price the house will sell for after rehab. Take your ARV subtract the cost of the house and rehab. But really you should be subtracting your all in price that includes holding costs, closing, points, etc.

Also keep in mind this thread is 7 years old...