All Forum Posts by: Matt Turbitt

why wouldn't it qualify for conventional? 9/10 times that only means the water is off in which case you buy it cash, get the plumbing functional, put a conventional mortgage on it with 20% of the purchase price and cash out the other 80%. 

The other option is portfolio or commercial lending. There will be lenders in your area that will carry the loan using the house as collateral. It stays on there books and they can't sell it off to the secondary mortgage market. If you are going to live there you can get as low as 5% down, probably 1-2 points, 5%interest. If it's an investment, expect 30% down. 

If you have the cash on hand outright there's enough ways to get that money back out without paying the 12% hard money will charge you.

fha pmi carries the upfront penalty and the monthly rate. You have to refiance out of it, it will not fall off on its own for fha per new guidelines in the last few years. Talk to lenders about 5% down non-fha option. You'll still carry pmi but it's normally cheaper then the insurance carriers fha uses, you also won't have the upfront penalty and it will fall off once you met the equity requirement. Assuming your DTI and credit score don't require you to go fha the better deal is to go conventional.

Hopefully someone can chime in that knows your market and can better assess if it's a good deal. To me, if it beats your rent and you can survive without a tenant then it's a fine enough deal. Obviously everything out there is way more expensive then here so I can't speak to your market, here I'd be buying 5 $1300 sfh for that 500k.

depends on size and what parts you need but my last 1200 Sq ft house that needed an A coil, line set, condenser, and a full charge was $1500. I use a company currently but I've found a good back up is commercial guys that do residential on the side, it doesn't take business from their main job so people don't mind as much.

Are your other properties in the llc? Is the llc really that important to you at this stage in your investing or is it based on posts that say you 'have to have' an llc? 

I'd suggest revisiting local banks and credit unions and talking to the commercial side, not the residential side of their lending department. For example, the one I use locally loans to llcs, it would be 30%down, 1pt and 5%, plus normal title costs,they count rental income from day 1 without a seasoning requirement. And they aren't even the most aggressive investor friendly in town. 

Hopefully there are some better programs available to you in your area, good luck!

they are probably just trying to offset some costs for being 12% lower then they expected. If they are just asking for title search then the title fees (search, binder, settlement) are normally like $400 here so pay it and move on. If they are asking for the title insurance that could be another story because it's almost 1%.

@Kathryn Bowden They still show as in stock and ready to go at the Ikea here for what that is worth. I like having the Kohler name but shoot $300 is hard to beat, hopefully they won't run out of stock anytime soon. I'm still 1.5 hours from the closest one (til a new one opens here in 10 months) so it's not always ideal but helps if you also pick up hinges, pulls, cabinets, counter tops, lighting, faucets, etc or anything else to make the trip worth while. They even sell just cabinet doors that look great if you can make the sizes work with your existing cabinet boxes.

How is the remodel coming along?

yeah you'll want to look up the rules on it in your area. Here for example we have a 2.5% owner occupant credit and a homestead credit. But you have to make poverty line income or be over 65 to get the homestead credit.

you may want to talk with a debt help/advice place in your area. Most Realtors know a local person who deals with this type up stuff and can help you navigate it. 

There's not much you can do about the student loan late charges but if they are federal loans you can refinance them and that can sometimes help. 

The bigger thing is you need to deal with the collection item. Getting that removed could easily be 50 pts. You need to get your score up to the 660s and should be shooting for 700s

Option 1. 2 years of it being your primary residence. 

This goes 2 ways for me. The first is that you already have 2 in that community so with the length of time you've been there you know better then any of us the market in that area. You know if the numbers work or not.  

The other side is that I'd think you could find better returns and better rental percentage then less then 1%. What is your actual cash flow after you remove prop taxes, insurance, hoa, 15% taxes on profit, and the 10% in contingency, and ~5% vacancy?