All Forum Posts by: Mark Fedorov

@Cynthia Carrasco... You need to do more research.

First of all, every HML is different, you need to talk to them about if this is interest only or an amortized loan. I find it hard to believe that a HML will let a interest only loan hang out there for 17 years, but you need to talk to them.

You should use a buy-or-rent calculator here to make sure you have your costs lined out. HOA can be anything, you need to ask the homeowners organization, insurance should be a quick call to your agent to find out, but you need to find out property taxes, water/sewer costs and some assumptions on maintenance, since you will be responsible if a window breaks or the hot water heater explodes.

No one can tell you if this is a good deal or not until you talk to the HOA, HML and get taxes and insurance information.

ANd then you should make suer the lender AND the HOA will let you do what you want to do.

So you want to offer LESS then the most ?... ok.. where is the problem?

..if you want to show what you put in the model, someone may be able to point out where the problem is...

after the closing costs, you are going to be spending $520 in interest per month on a place you can't rent out for 12-18 months. You apparently don't have cash to put down, can you afford the interest payments, the HOA, and the utilities/taxes and insurance? This sounds like a loosing propsition.

And you should call the lender about borrowing the 30% and living in it... if you lie to them and then they find out you will be in a worse situation than if they say no now.

I get suck on this:

 The benefit of immediate expensing of business investment operates as a more beneficial and more neutral substitute for the deduction of interest expense associated with debt incurred to finance such investment. 

So, you buy a house, or a machine, you get to expense it, as in  you spend $100K on a house and you have a $100K expence... so the year you buy the house, you pay no taxes, and you carry that loss forward until you use it up... so assume 7% cap rate (7K of income per year) and you pay no taxes for 14 years..... then what, you would have 0 basis when you sell (since it is all expensed) so selling generates a huge tax bill for you, so people never sell.

So, if you own a rental you essentially get all your tax benefit in the first 10-15 years, then you are stuck with it, unless they change the rules about capital gains.... 

But then: The Committee on Ways and Means will work to develop special rules with respect to interest expense for financial services companies, such as banks, insurance, and leasing, that will take into account the role of interest income and interest expense in their business models. SO banks and insurance will still get their piece of the pie.. I guess our only hope is that if "Real Estate ownership" is considered "leasing"..

My head hurts, this is a massive change, I need to think about it.

Get a concrete/foundation contractor in there before you make an offer, this could be minor or major, I would not trust myself to make that determination.

Also, you will need to at least patch that up if you expect anyone to buy your flip.

It is a state law, and frankly there may not be a limit, usually laws are there to protect the consumer, not a business. IF you are a tenant, ask the landlord to put 30 days in the lease, if you are the landlord, do it in 30days, that is reasonable.

Anyone can buy property, it is the loans to foreigners that is usually the issue. If they have the cash and can get it into a US bank legally, there really is nothing standing in the way.

(but they should still have a good lawyer)

check your lease.

If you don;t have one or this is not mentioned, take this as the way things will be in the future. Dig in for a tough fight or find another place.

Also.. I would offer them to make they keys for them and deduct the cost from next month;s rent, that way you are never without your keys.

face to face conversation.

You may have your information wrong, they may be lieing, best to come to it as "I have a problem I do not understand, can you help me resolve this?"

Well, it is usually in a room in the court house, not the step. 

Different auctions (at least in PA ) have different rules, talk to the county clerk they will tell you, most of the time the auction price will cover the county's costs only, and then the bank will make the first bid to cover their lein, but if there is a tax lien and a mortgage or a 2ed mortgage you would be responsible for that, always alway to a title search before bidding because the county will not tell you if there are multiple leins...