All Forum Posts by: Mike Hanneman

Form the picture it is hard to deal if this was done right. But because there are at least four beams instead of just two in the corners attached to footers with a cross beam on top of them spanning the width I would say that this was a DIY fix. There should be documentation somewhere about how this was fixed, and by whom, if it was done professionally.

Certainly the seller knew this would be an issue when they sold so if it was done correctly they will have the documentation. If it was not done right though, that does not make this a deal buster. You can get a heck of a price reduction due to this issue as it will turn 95% of buyers away from this.

Figure the cost of this fix into your numbers and go from there. Bring in a contractor that has experience would foundation issues for a bid during a walk through.

These are becoming very popular as of late. So popular in fact that last summer I saw a TV show dedicated to people building homes out of shipping containers.

There is a "green" movement on these as well as it is a form of recycling. However, once you add in framing to insulate I can't imagine that you'll be very much ahead in terms of budget verus a stick built or manufactered home. But maybe you will be able to save on items such as a roof and siding costs.

It would depend on the market itself. Also are you talking flips, or rentals? I would want to see on average how long a home is on the market if i'm going to do a flip. For a buy and hold I would want to look at rental prices and how many there are available. Size of town doesn't bother me it's the individual market that I would worry about.

A good HML will not charge you ahead of time. Other then for appraisal obviously. Those fees and points are either rolled into the loan or paid at closing. If you come accross one that doesn't do this then move on to another. Don't be one of many new investers that are scammed this way.

If you decide to just keep paying the monthly payment and not pay the balloon it will ruin your credit and possibly more. I can be certain that no bank will just let that fly because "you pay on time" you will be in direct default of the loan terms. The banks make those balloons and have them on their books accounted for and probably are already planning what to do with that money for their working capital. 

If this is that big of an issue why don't you just sell and take all that equity and get more/other units?

I believe they are required and supplied by owners of mulifamily dwellings where there is a common area, i.e. hallway, laundry room, etc...

NFPA is the National Fire Protection Association, and 10 is the the chapter on portable fire extinguishers.

If it was me I'd install them, who knows it might save your building or even a life having them installed. Plus with the way our justice system works, you could probably even be sued should there be a fire and there is no fire extinguisher, even if one isn't required.

Why are you looking at commercial lending to begin with for only one condo? You will most likely get a better rate using a residential mortgage lender.

Tell that guy to go pound sand and talk to other lenders, keep talking to one till you find one that will lend to you.

You have to look at your house and see if it's set up for a rental. Are the finishes durable enough for a rental? Real wood floors are horrible and expensive to have in a rental as they will get damaged. If alot the finishes aren't set up for a rental you will lose all the money you made renting to get it fixed up when you sell.

Also you look to be cash flow negative, from the numbers above you are not even taking into account taxes and insurance, and other expenses.

Is the 40k - 60k accounting for selling costs, i.e. comissions, etc...?

With only making $100 a month it would take you a long time to offset what you could make if you sold, correct?

With any purchase in real estate you make money when you buy. With that being said as long as you are running your numbers and they still work for you with the higher rates you will be fine.

The higher rates will deter some buyers but I don't see it hurting the rental market at all. Plus how much are they really going to raise them? It's still really cheap money for the most part.

Most millenials are inclined to rent because they can't qualify for a loan with the newer, higher loan standards. As long as those are still in place the rental market will still do really well.