All Forum Posts by: Michele B.

@Michele B. do you know how it works with home equity loans if you’re allowed to have more then one out on a property?  We have a $55,000 currently all used up on our home we live in.  I used half of this for me down payment on the Duplex.  But when we did our equity loan for $55,000 we did have the option to go up to $155,000 but at that time i wasn’t on this adventure yet or had it on my mind even.  Can you get a second one?  If so are the terms stricter?

Thanks Aaron 

Just to answer your questions in order:

1. No management costs. I am owner-occupant, so I would be managing the property

2. All utilities are paid by the tenant. Lawn work is almost nothing; there's barely a lawn.

3. Maintenance I put in what I think was a conservative percentage of rents. The home was completely rehabbed in 2013 so I would expect maintenance costs to be relatively low comparatively. 

So with the down payment and closing costs... Here's where it might get a little interesting. 

I may have the opportunity to do owner financing. To make a long story short I could borrow a large down payment at no interest (Bank of Dad), and get WHAT I WOULD ASSUME WOULD BE a great interest rate since I would essentially just be taking over the payments of the current mortgage holder, who has good credit and a good rate. Perhaps he could refinance for an even better one? I know even less about owner financing than I do traditional financing. 

But yes, I would use an FHA loan at 3.5% down and use a cosigner as well to get a low interest rate (Thanks again, bank of Dad!)

The place has 4 bedrooms so this is without considering myself as the 4th occupant in terms of deferred spending, and also it will be a place for me to conduct my online business. So it does seem like a pretty sweet deal I suppose. They only thing it doesn't have it seems is increasing value over time. 

@Michele B. @Dennis M.,

Well, unfortunately, we trusted our mentor with this deal. He orchestrated the entire deal, and allowed him to "mentor" us. At this point, it is what it is, and have learned tons with what this "mentor" has put us through. Now we are trying to come up with alternative solutions, instead of selling, and taking a huge loss. 

Initially this property was a flip. We purchased it with a tenant in the property. Our mentor said that it will not be a problem getting the tenant out. That was not the case. 7 months and thousands of $ later, the tenant is now out, and we will not have enough capital to rehab the property as the months have added to the loan. So, we are now trying to find out what other options we may have so we are not in the red. 

@Michele B. WOW!! All that info from you alone was enough to let me know what bases need to be covered!! So thank you so much!! I may bug you a few times with some questions if you don’t mind but thank you so much!

Why did you pay 650k for a home that had issues and yOu can’t sell it for 650k? Now you have a tight deadline coming up . That’s terrifying and it’s a lot of money . How did you find yourself in this situation?