All Forum Posts by: Nicholas L.

@Pat Muller you need to account for capex, repairs, vacancy, property management, grounds maintenance, etc.

@Pat Muller "exceed mortgage plus taxes" still isn't enough.  Post the expenses vs. expected rents.

@Christopher Morelock need more info... rents of $600 to $1200 is too large a range.  And if you can't see it, how can you estimate the repairs?

@Pat Muller if it is accurate that "market rent would be about the mortgage payment + taxes," then this isn't a good deal - there are many more expenses than that to consider.  Pass.

@Trish Mccoy "splitting equity" is the harder thing to do.  You could buy it yourself, and then split profits however you like.

@Dawn Platt can you elaborate on your question? I think the answer is going to be - people paid all sorts of different amounts and percentages. You can use an FHA loan to reduce your down payment, for example.

@Mark Green are the smelly people up to date with rent?

@Josh Corby out of pocket... unless you somehow got a private money loan for those costs.  But then you'd be in an endless cycle of loans and continuously paying interest.  The whole point of doing the refi and taking out the conventional loan is to be totally done with higher interest, shorter term loans and move on.

@Josh Corby have you ever applied for a mortgage before on a primary residence? It's similar. You apply, the bank will do the underwriting, and if successful, the bank will provide you with the loan. You will then use the loan proceeds to pay off the HML/PML.

Keep in mind that the bank doesn't care about how much your HML/PML is for. You might owe more than you get. And the bank will usually subtract closing costs. Here's an example.

You owe $100K to an HML. Your property appraises for $120K, less than what you hoped for. A bank loans you $84K (70% of $120K). Closing costs are $6K. You'll receive $78K. You now need $22K of your own cash to cover the HML.

@Anthony Rossetti house hack.