All Forum Posts by: Matt M.

Troy Knight No experience in Charlotte, however with my AE zones we are also given a Base Flood Elevation. BFE. The BFE is the lowest elevation new construction or extensive renovations can be built at. When we build new construction we will set the floor at one foot or more above BFE, as that is where substantial discounts begin to occur (25-40% in my market). Pier and beam construction is most common here, so we might only spend $2-3000 above bare minimum in construction costs to achieve a $600-1000 yearly discount in flood policy for the buyer. (Is this where you were headed with pre-pay)? Attached garages can be one of the biggest issues I've faced, as different surveyors and insurance agents view FEMA's guidance differently. I've done carports in lieu of garages to avoid the issue in the past. Knowledgeable insurance agents can navigate this issue pretty easily, and should be able to provide pricing based upon several different elevations to help determine what would be most beneficial for you. FEMA sent a letter last year stating flood policy's WILL rise 5-18% per year for the next several years until they reach actuarial soundness. So, if it's a hot area, and your house has cheap flood insurance there should be some positive correlation to sales price.

Welcome Toby! Sounds like you've got a great start with investing. There are quite a few New Orleans members on here, I'm not sure if too many invest in condos though, looking forward to your input.

I was looking at them during the tax sale auction. The value proposition wasn't that interesting to me. Assuming the property research hasn't started civic source wants you deposit ($650?) to start research, and assuming their research checks out then you get a chance to bid on it. The deposit is refundable if you don't win, or the property is redeemed. I have better things to do with my money than let civic source hold it for a few months. But if it's a good property and you don't mind the wait, and realize you could pay close to market value it may be worthwhile for you. I recall there was an issue with title insurance on the first round of adjudicated properties. I would think that has been resolved, but not sure.

I'm sure investors in the western burbs find deals on those sites, but you have to understand that you're competing against every active investor and every multifamily homebuyer that lives there. Your chance of finding and locking up that elusive deal are pretty slim when you're competing against hundreds if not thousands of buyers. Also your opinion of what a deal is before your first deal will change as you gain more experience, perhaps you need to re-evaluate your criteria. The podcasts have numerous episodes that tackle this topic, I would start there to really understand what you could do differently to find a deal.

I'm in the process of completing a cash out refi right now, and I can tell you that lenders will calculate DTI wildly different depending on their overlays and underwriting. Three different lenders, four different DTIs. 71%, 53% 43% and 17%. The 71% and 53% lender were the same lender, I reminded them about a few Fannie guidelines after they came back at 71%. All three lenders had the exact same application packet upfront, and I told them to expect a DTI issue. Now have rental and other income that skews how they may review my application, but the same is true for someone about to purchase their first property. Your long term success as an investor is likely related to how well you're able to procure mortgages and financing. Get acquainted with FHA and Fannies guidelines on multifamily properties and the income they generate and you'll be able to nudge your lenders in the right direction when you need to.

Hong Lem Oak Park is defined by a relatively small area, Filmore to Robert E Lee, Pratt to St Bernard. I think the area the Neighborhood Association define it as is even smaller. Warrington to E Fields is a nice area too, but Mike Wood hit the nail on the head earlier. Lots of Non-Profit builds in the area which helps appraisals of new construction but the footprint is much smaller than 2000sf usually. Below 2000sf your cost PSF will be much higher.

Hong Lem I would advise against Oak Park unless you already hold land their. The land inventory there is either builder owned, or pretty deeply flawed title wise. Not sure where actual land sales are trending, but MLS list prices there and building your first spec home would be a bad idea, not nearly enough margin. Kicking myself presently over Oak Park, had multiple leads there and offers in the low 30's and 40's. Should have closed them in retrospect.

I believe Mapai Planipatch is rated for this purpose. Featherfinish from Ardex might be as well. They aren't cheap but it would be cheaper than pulling up that tile and patching the subfloor. I wouldn't do this if the tile is cracked or loose.

Hi Micheal, Your correct that most duplexes in New Orleans and the surrounding area will not cash flow at this time. The 4plexes in Metarie are very expensive right now, but will cash flow even when you don't include your unit. It's not too much for a new investor to handle, and Louisiana is very landlord friendly. The hardest thing for you will be having the old tenants leave, or increasing rent to market. I'm in New Orleans if you want to meet up, or have any questions PM me.

Meghan McCallum I'm curious if you've noticed a trend in the previous sale of 2-4 family that I've seen in the western suburbs. Lots of homes for sale right around their 2005-2010 purchase price. Doesn't seem like rents have gone up too much either. Taxes however, 20-30% higher than where they were purchased a decade ago. I've ran numbers on a 4 plex comped at 400k that I wouldn't be comfortable with for less than 280k. Same with similar Chicago properties.