All Forum Posts by: Megan Phillips

@Shane Brown  Yeah - you most likely won't be given any income proof without an accepted offer. I've gotten the idea that the seller isn't very motivated -  in my original post I forgot the mention the most frustrating part of the 48hr offer time table - we had already scheduled my second visit to the property, essentially was just going to do another walk through to look at things a little closer, just to make sure I really wanted it. They would not wait until the showing before requiring that I put in a "very strong" offer. They would've had to wait an extra 3 days. 3 DAYS. Would've sold it. I'm not saying being unmotivated to sell is good or bad, it just kind of is what it is.

Perhaps the owner simply knows that they have a great property and they are willing to wait for the right buyer while cashing in nearly 3k every month (I really think this is the case), or perhaps that will change after it sits on the market for 6+ months.

You can always put contingencies on an offer to get out of it after the inspection - why not do a little digging and at least see what the numbers really say? I would be interested to see what they were before it was renovated, just out of curiosity.

Wow, potentially going for 8 units at once for a first purchase, that's pretty BA. I think it's dependent on your market, and maybe the size of the apts? It might be better if there was a mix of apt sizes, but as long as vacancies aren't an issue, then there's no problem in my opinion.

Is $475 a month market rent for the area? Seems low especially considering it was just renovated... perhaps it's just because VT is very expensive -  I would try to bring rent up for sure. 

If you are going to go for it with 8 units, I would make sure to really nail down a management plan (tenant screening!!) and have systems that will  be consistently followed and maintained, because with rents that low, you may not have the "best" tenants (unless that really is market rent - either way you still need a solid plan!). I'm reading "The Book on Managing Rental Properties" by Brandon Turner - lots of information! 

That being said - you can always get rid of bad tenants. I've looked at A LOT of properties in Franklin county, that is hands down the nicest and best  maintained that I've seen. I Just decided commuting from that area is too much, but honestly, it's still on my radar as a possibility. 

If the vacancies aren't bad (supported by data) it could be worth going for. Especially if you've got friends there that can keep an eye on it for you! 

@Shane Brown 

Oh, I know, I'm right there with ya. I've been looking for 3-4 months. Made a full price offer on a duplex in St. A a couple weeks back just to have the seller's agent inform us that when we did our walk through,  they had already accepted a verbal offer,  so it wasn't even available! But that's just a bad realtor in my opinion, could of let us know and would've gotten multiple bidders and potentially higher price,  instead it was just a big waste of time and a big let down. 

Inventory is just low right now, I don't want to buy just to buy. 

On another note - if you're sure it's black walnut, the wood is very valuable!

I don't think I would cut it down unless street parking was not an option (plus I'm an Environmental Scientist... I like trees) - I would let them know about the tree, and tell them to expect to park on the street when it's producing walnuts.

Hi all -

Are there hurdles to consider when refinancing from a seller financed loan to a conventional bank loan? 

Reasoning: There are no comps available so far for a property that I am interested in, I'm wondering about the option of seller financing (I don't even know if the property is owned or still mortgaged - I'm just considering possible options), but I'd like to refi in 2-4 years to a conventional loan, what should I be looking out for? 

General thoughts about seller financing also appreciated.

Megan

Vermont

Hi Shane - 

I have looked at this property and actually really like it. If I were you, I would be sure to get several years of previous tax filings and proof of long term leases/vacancy rates for a few years. 

I wanted to buy it as and FHA owner occupied a couple months back, they actually originally refused because they had found a potential tenant for the third apartment (even though they were supposedly all filled) and said I needed to make an offer within 48hrs (I was out of state for the weekend, this was at about 11am on a Saturday, and they required "a very strong offer" by 5pm Monday) I didn't go for it because I wasn't into the pressure. A week later they called my realtor because one of the "long term leases" was ending early and it was now okay to use as an owner occupy if I wanted... I didn't bite then either. I've since inquired about the property as recently as last week to see about owner occupying (from a private email with no association to previous inquiries) just to see what they said - they said absolutely, would I prefer the 2 bedroom downstairs or a one bedroom apartment u pstairs?!

I'm not trying to scare you away from it, and maybe I'm just a little chapped about them not initially giving me more than 2 days to consider an offer because frankly, I would have bought it... but the whole situation just seemed off to me. Make sure the pro forma numbers actually work with data from the seller, if they do, I'd go for it. Good luck!

Also - if you're close enough, why not consider investing in New Hampshire instead of Vermont and use a private lender?They have considerably lower unemployment, are more business friendly, and it's a much better tax scene. I'm not sure how that would work if your address was still in VT (I worked in NH but lived in VT a few years ago - had to pay in quite a bit that tax season!) but something to think about.

Hi Matt -

I'm not quite in the same boat because I've had the same W2 for a few years, but I also don't match your savings. I haven't purchased yet but was pre-approved for a mortgage via Buddy Singh at Spruce Mortgage, I think they are based out of Boston but have a Burlington office --- my only problem was that they aren't included on the list of approved lenders that allow you to use the VHFA down payment loan assistance (if you have 30k you potentially don't need this, just something to consider). Maybe it was mostly based on my W2, but they definitely consider the potential rental income also. I'd at least call and discuss. I was also recommended Ronnie Ryan from VT Mortgage Company but their line was busy when I called and Buddy's wasn't, haha - talk to them both and see what they recommend? I don't know that I can post their phone numbers here but you should be able to google them.

Megan