All Forum Posts by: Derek Morrison
Derek Morrison has started 44 posts and replied 89 times.
Post: Refinish Hardwood Staircase
- Rental Property Investor
- Marshfield, MA
- Posts 90
- Votes 28
Looking for a contractor in Worcester, MA area who someone can refer me to. Looking to refinish hardwood staircase in a Multifamily property
Post: Do I have to show my property to everyone?
- Rental Property Investor
- Marshfield, MA
- Posts 90
- Votes 28
I'm rereading Brandon's book on Managing rental properties and he mentions that you need to give everyone an opportunity to apply, even if they don't meet the minimum criteria you have set. Do I also need to show my property to everyone who asks, even if they don't meet the minimum criteria? I don't wanna waste time if I know they aren't gonna qualify, but I don't want to be accused of violating fair housing laws here
Post: Cash purchase then mortgage
- Rental Property Investor
- Marshfield, MA
- Posts 90
- Votes 28
Quote from @Matthew Crivelli:
95% LTV is likely not going to happen. What is the end game plan? Is this a rental or are you planning on moving into one of the units? fix and Commercial lenders will not lend money for owner occupied. If it this stickily a rental there are 30Y DSCR loans available that allow you to refinance immediately after you purchase with cash BUT you are going to max out at 80% LTC. (Loan to Cost)
Can you find a private guy to lend you high LTV for short term? It's possible, but what is your exit plan? If you take a high rate, interest only bridge loan, you need to have a solid exit or you will pay tons in interest.
We're just trying to buy a multifamily house with a 5% down owner occupied loan. We just keep getting beat out by cash offers so I was trying to find a way to essentially compete with cash buyers so it looks the same on sellers end. I know with private $ we'd have a higher rate but was hoping it'd be a short term solution if we could refi into regular 30y mortgage
Post: Cash purchase then mortgage
- Rental Property Investor
- Marshfield, MA
- Posts 90
- Votes 28
Good morning! My wife and I have made several offers on multifamily houses recently but keep being beaten out by (lower) cash offers. Is there a way to offer and buy a property for cash (either private or hard money) then refi into a mortgage at 95% LTV?
Post: New Tenant Requirements (MA)
- Rental Property Investor
- Marshfield, MA
- Posts 90
- Votes 28
My wife and I are hopefully closing on a two family in MA very soon. What are the forms & processes i need to provide & follow during initial lease up? I downloaded the BP rental contract for MA and read something about providing lead paint disclosure/pamphlet. It made me realize there's probably other forms or steps I need to take when accepting applications and signing a new lease.
Post: Looking for lender (Conventional)
- Rental Property Investor
- Marshfield, MA
- Posts 90
- Votes 28
Looking for a lender in MA for conventional financing for a 2-4 unit house. Will be doing 5% down and will be using 75% of rental income towards mortgage. Please reply or PM me if you know someone!
Post: What Would you Do?
- Rental Property Investor
- Marshfield, MA
- Posts 90
- Votes 28
How possible is it to get started in 2024? I have about 15k liquid cash and live in MA. I'm looking at properties here (basically anything east of worcester and within an hour of Boston. Pretty much everything I've looked at either:
A) doesn't cash flow for about 15 years
B) would cash flow if you bought it with cash, but at that point you could get much better returns investing that money elsewhere
Even looking at house hacking it seems that the savings on rent (about 2.5k/month median) are outweighed by the significantly higher cost of purchasing property. Anyone have any firsthand take on this?
Post: Giving someone else a loan from a 401k
- Rental Property Investor
- Marshfield, MA
- Posts 90
- Votes 28
Hi, I was wondering if anyone has been involved in originating or receiving loans from a 401k to purchase a property. Not taking a loan from your personal 401k, but loaning funds to someone (or being the person that received said funds from someone else). It seems like a simple enough idea, but what are the logistics of it?
Post: Stessa vs Rent Redi
- Rental Property Investor
- Marshfield, MA
- Posts 90
- Votes 28
Hi all,
I've started to play around a bit with Stessa and RentRedi for a property but I want to get feedback from users before I officially go all in.
Do the two platforms serve the same function? It seems like I can collect rent with both and have tenants apply through both. Is this a question of using one or the other, or do they compliment each other such that I should use both? Trying to keep things as simple and as much data/admin work as centrally located as possible.
Any feedback about either/both platforms is appreciated!
Post: Rental income applied to mortgage?
- Rental Property Investor
- Marshfield, MA
- Posts 90
- Votes 28
Quote from @Derek Brickley:
Everyone's replies are spot on. I will add a common misconception with the new conventional mortgage program for 2-4 unit properties though about under which circumstances you can use this income: You will need a 12 month verification of rent or verification of mortgage. If you are living with no current housing expense, then you wouldn't be able to use that as qualifying income.
FHA you can use this in all circumstances.
Great, thank you for that caveat. So I currently live at home but pay rent in cash to my parents monthly. What do I need to do in order to have 12 month verification of rent. Do I need a signed rental agreement? Should I start writing checks (as opposed to cash) to my parents and making copies for my records? Is a signed affidavit from my parents enough?