All Forum Posts by: Melissa Kirchhoff

@Ericka G. - I hate to say this, but I believe whatever part of the tree falls on your property is just that. However, your insurance should be taking care of it, probably depending on your deducible/if it's worth it. If the neighbor is nice, they should take care of it as well. But legally, I don't think you have anything but I hope I'm wrong. I think what you're doing is the right thing, get it taken care of quickly, go over nicely, and ask if the neighbor will take care of it. If not, I think you may be stuck eating that one and just be happy there was no other damage! In Feb we had a tornado that was pretty much just 500+ year old trees completely uprooting and taking out entire buildings so if it's just the power lines...I'd say that's lucky!

And side note, just for fun, we had that happen with a "city tree" that's between the sidewalk and the street, which the city is supposed to keep trimmed away from the power lines, but when a branch came down and ripped our power line out, it quickly became "our tree" lol as well as the wires outside the box, because the box touched our house. Love that quick shift in responsibility! ;-)

@Account Closed - You know what they say - Location, location, location!

Someone else may just have not realized (out of area people do this all the time!) so don't feel too down and think someone else got the deal. Everything for a reason! =)

@Rodney Harris - Never heard of NACA so I'm guessing it's an area thing (like we're out in the country so we have a rural development - USDA loan type here) I'm guessing this is similar to USDA but honestly not sure so I'll just shut up on that one.

However, FHA is a little bit less smooth than you might think. FHA has guidelines for live ability issues, so it's hard to fund distressed properties with it. Also, you'll have PMI for the life of the loan, which can add a few hundred dollars or more a month for the whole life of the loan (unless you refinance - which costs too) and you are forced to escrow taxes with FHA. So there's some things to consider on that end.

Personally, I always say go conventional when possible (sometimes it's not for people who claim cash as income or have lower credit scores or DTI issues) but if it's just down payment, there's so many 3.5% conventional programs out there now. And you can always ask for seller concessions to cover closing costs (though I don't really recommend that unless you really don't have that capital or need if free for immediate repairs!). So talk to some lenders on that and compare all the numbers in terms of payment and life of the loan stuff.

@Nancy Fortenberry - I'm sorry he's being a jerk, but it's due diligence. NEVER count on anything in an MLS listing.

For one, ours overrides what our measurements are if the "TAX" assessment is different (and usually they are, and usually, frankly, they are way off because they are trying to make people pay more in taxes.) I don't know if your area is the same, but still, that all comes down to due diligence (and usually people measure the rooms and add that up, that way is INCORRECT -- Fannie Mae guidelines (which appraisers use) require measurements to be taken *outside* the building to find sqft (so again, you can see where the difference comes from).

If you're backing out of the contract for that 305 sqft?? Really?? That's my question but in that case, if you're backing out because of that (it's not likely in the contract of a reason you'd get your EM returned) but if you had hung in there usually agents can find a legit way to get you out and get your EM back. It's all about communication but I'd be PO as poo if someone backed out because of 305 sqft lol just being honest! I get that you feel taken for, but probably most listings in the area are wrong and probably when it's put back on the market it will be the same as I said above, overridden with the incorrect one because of the area tax assessor.

@Tammyy Crook - Welcome to BP!

I agree with @Philip Williams - 1. Why rockford? 2. Go where the deals are, just make sure you know the market or have someone on your side who does! 

I just know the Rockford market has some deals, but I know there's seriously declining areas and sales and prices can be a problem, so I hope you know the market well! However, there's lots of nice places around you that have great prices and where the market is recovering and sales prices are growing.

Otherwise (to answer your question finally!), if you already have the money, look for properties that fit within that amount and analyze how much it will take to put in them and what they might sell for (look for sold and active comps -- sold can give you an idea of the appraisal value and active will show you the market value -- both are important and can be very different!). From there, once you've been in a few and know what you want to do (start more cosmetic and easy or go for the moon and do major reno?) and start making offers! Make sure you have your plan and team put together, how you're going to sell and promote, and if it doesn't sell, what is your exit strategy. 

Do a google search for "flipping"+"bp podcasts" and download and listen to as many as you can in the meanwhile if you haven't already! Good luck!

@Ryan Lane - To me, personally, let's say you can get a start in SFH (maybe then the 30k might work or go further in your area) then do something like BRRRR. That way you can refi (let's say in Jan when you have the new tax return) and pull the cash out, and keep moving up until you can easily get into those MFH.

To me, that's better than waiting and it gets you in the game and gives you the experience on a lower level before moving up.

Or, if that's not what you want to do, probably partnering up with someone who has the daytime job and W2 would probably be a good option if you can find that!

@Blake Bowland -

This may exist, so don't kill me if it does!

I keep thinking about how I would like something very specific regarding the BRRRR Appraisal aspect. Like in general a section where appraisers point out little tips and tricks to getting higher appraisals. I know this would be area and appraiser specific, but it would help to get some ideas on where to really spend on rehabs and where to save.

@Anthony To -

Most banks don't use other lender's appraisals period. It's just not in their best interest. They want their people going in since the property is what is securing the loan. 

Second, I don't think you would want to use that one since FHA appraisals are done differently. They mark things that would need repairs (which is probably why you ran into issues) so personally, I wouldn't want an underwriter seeing those because then you might be back to square one.

Also, I'm sure there's stuff that (even though you paid for it) it's contracted via the lender so in a way, they own it. Honestly, just pay the money to get a new one.

@Tris Rollins

1. Usually they would do something like that, if the seller has already received rent for that full month, then yes, they would break it down to dollars/days and the seller should pay you from the day after closing to the end of the month. Of course, this is negotiable but I would think that's the fairest way to go.

2. I would use that, an attorney, or title company. They usually can prepare everything and have a closer available to make sure everything is signed and documented. Which should be what happens when you use a realtor as well, just it happens a little bit more..."seamlessly"... aka, we take care of it all lol  ;-) if the seller has an attorney or company like that they usually get to pick who and where, but you can have your representative as well (I like the attorney route personally, around here it's 350-400 and they take care of everything and you just show up with a check and sign!)

@Dustin Scruggs

I wouldn't assume that, there's so many situations that could come into play.

1. Seller just doesn't want to manage it anymore, maybe wants to retire or got another job and doesn't have the time/interest.

2. Seller moving away and doesn't want to hire property manager

3. Wants to sell to free up that cash for another investment or just to have

I'm sure you could sit here all day and come up with reasons, and I'm sure there's reasons we can't even begin to think of. If it makes you nervous, just ask the reason. I wouldn't ignore them based off that though.