All Forum Posts by: Jack Bobeck

Daniel A Lee Kim here in Jacksonville, I’ve seen turnkey multifamily properties going for 50k per door, I don’t think you will find much at your price point, unless it’s a foreclosure. Those days are a few years ago and they may come back in a few years with a new cycle, but just not right now. Good luck with your search.

I agree with all who point out the flaws of the online real estate sites. Who here has had an appraisal done by a licensed appraiser? You paid good money to have an licensed professional give you their estimate. It’s what the banks use to determine real value. The Realtor has a place on the real estate team. They find, show, list and help fight for properties. Their Comps can aid an appraiser or not, but Realtors can show similar properties that have sold and provide solid costs per sq ft. Similar to what the appraiser offers. Another professional on your team. A Zestimate is worth what you paid for it, nothing. I agree with Brian Ploszay “An algorithm doesn't have the correct inputs to make a decent valuation. “ the algorithm does not take into account the “inside” of the property, nor does it know of conditions in the local market or other fluid variables. How could it? For this agents would have to input the data into Zillow and share with the same beast that sells their own information back to them, at a profit. Homes, Realtor, Zillow/trulia, and hundreds of others are worth what you pay for them. The real value is what your professionals charge you, and ultimately what the banks see to fund the deals.

@Ben M. Go with your gut. You sound like you have a plan, so work your plan and tell us how it all works out. Love to hear a great success story! 

@Todd Lightfoot What sort of equity is in the property at 75K? Is it worth 90k? 100k? You could do a deal where you use equity to cover the down payment short fall. You can get an appraisal done, only costs $500 or so, but may be a great investment to keep you from having to pay PMI. See if you can use equity and hold onto your savings.

@John LaVecchia The Section 8 programs are going to have an inspector come out and inspect the property to meet their standards. You could hire a Home Inspector that works on a lot of Section 8 housing to do the same thing, one time. You can call your local section 8 offices and see if they have some people they recommend, then do your background checks on the people recommended. You should be able to find some good ones who can tell you what you need to fix to pass an inspection and get you on your way for the program. Best of luck to you. 

@Ken Vogel A conventional loan costs you at least 3% in closing costs. Forget that! Look at the Line of Credit against either property. Costs are less, more flexible terms. The line is put against the house just like a 2nd, so no difference there. Only pay for what you use and put it back. TD Bank has a pretty cool program, $99 origination fee, $50 annual fee, 75% LTV, 4.49%. There are lots of LOC options for a primary residence.

Once you get the new property, get a note on it and put the funds back into the LOC. You can get Buy-Fix-Flip or Buy-Fix-Rent terms easily, with 640+ credit out there. No reason to put your savings at risk. Best of luck to you.

@Shawn Dandridge My lease states that the Tenant is responsible for the first $50 of any service call. This cuts down on silly calls like the one you have above. 

@Jay Hinrichs I was responding to your post about running Title Searches. As with Consideration, I agree with @Steve Vaughan. I never said to not get money down to acquire the property. You need to get the title on the property, but you also need to make sure the deal is done with the help of a good RE Attorney.  I recommend the use of professionals,building a team of professionals. A good real estate attorney and title agent can save thousands. 

Lots of good books out there on Lease Options, so lots of detail for those unsure of all the moving pieces. I like them, I think they are great because I don't put in a lot of cash. Its comfortable for me. 

@Fred Smith A Conventional Loan or a HELOC, either one of them treated as a 2nd loan. The costs of a LOC are a LOT less than a 2nd Conventional, closing costs will be around 3% of the loan. Figure the cost to apply is like a one-time fee, they allow you to keep it open for 20-30 years.

For what is allowed based on "seasoning", I recommend you ask your mortgage broker. Also get a quote for each. I think the LOC is a better way to go, because you can pay it off and use it as needed.

@Snehann Kapnadak I am not your person for multifamily. I would not look at any multifamily unless it was an entire complex. My experience with duplexes is that the people above dont like the people below and the people below make too much noise for the upstairs people, its always something. I could rent out SFH like giving candy to babies, but I always had a hard time getting apartment rentals. If I owned multifamily now, I would hire a service to rent it, manage it and deal with it. A SFH, to me is so much easier. My 2 cents. There are a bunch of good people to partner with at the local REIA events on MF, if you wish to pursue that direction.