All Forum Posts by: Mark Bookhagen

Closing costs = money now rather than later. Money is always worth more "now."

I'll try not to sound to negative, but it is going to come off that way... I'm not sure why you'd want to assume a $34k mort. on a $20k property unless the seller is planning on paying the mortgage down by $14k before you take title. You're basically saying you want to give this guy $14k to get into this deal. To put it another way, you are overpaying by 70%... why? I would not do this deal at all.

Key question you need to ask is... what happens if you want to sell one of the 4 properties?

The seller plays the role of the buyer's bank (mortgagee). The underwriting is as involved (or not) as the seller desires. The buyer makes monthly P&I payments to seller until the loan is either called, becomes due, or is fully amortized. Basically, just think of the seller as the mortgage company.

http://andrew-schultz.com/real-estate/most-common-red-flags-for-fha-appraisals/717/

- Do you have the property under contract?

- What is the purchase price in your contract with the seller?

- What is your assignment fee? 

Make them answer these questions. They won't want to answer the last two, but you need to make them.

Yes @Robert Gannon. Thanks for coordinating.

Any way to configure into a 3/1.5? If not, I would think a 3/1 would have more marketability if in a family neighborhood. If not a family neighborhood, a 2/2 could be better.

Turning a property over (ie. increasing NOI) is THE way to make money in the rental business. Make your property perform better. This is assuming you bought it at a decent then-current cap rate.

I don't know the exact answer to your question, but the fact that you've landlorded for 2 years will help them include it. Note: Remember that (depending on your down payment) FHA loans require PMI for the LIFE of the loan now. You'll need to take this into account for your cash flow goals.