All Forum Posts by: Norris Frazier
Norris Frazier has started 2 posts and replied 18 times.
Post: Closing on 1st Investment property on the 31st
- Posts 18
- Votes 10
Quote from @Jewel B.:
Any updates?
Have you received my inbox? Check your notifications... Bell at top right.
Post: Closing on 1st Investment property on the 31st
- Posts 18
- Votes 10
Update:
It Appraised at 200K! 58% Off Purchase... Had to buy it, right...
Closed on the 30th. Keys in hand...
Now the fun begins!
Est: Foundation 20K, Plumbing: 6K, Roof: Under warranty (pending confirmation). Leaves 10K for other. Est All in 152K and ARV 180K (Conservative) I'll keep you all updated.
Post: First investment property
- Posts 18
- Votes 10
Congrats! Much success on your journey!
Post: Closing on 1st Investment property on the 31st
- Posts 18
- Votes 10
Email request sent to you
Post: Closing on 1st Investment property on the 31st
- Posts 18
- Votes 10
Quote from @Reyansh Budhagoda:
Quote from @Norris Frazier:
Quote from @Reyansh Budhagoda:
Quote from @Eliott Elias:
Sounds like you need to spend more time finding a good team. There are HML in Texas who do 10% interest at 1.5% points. Contractors are for the most part sleazy, you want to mitigate this by paying them AFTER work is complete.
10% @ 1.5% points, is wild... I got in w/ 11.5% @ 3 points, after plenty of work from every side.
Norris could you kindly share your lender?
Don't see it to be a problem. I will check with my contact.
Post: Closing on 1st Investment property on the 31st
- Posts 18
- Votes 10
Quote from @Reyansh Budhagoda:
Quote from @Eliott Elias:
Sounds like you need to spend more time finding a good team. There are HML in Texas who do 10% interest at 1.5% points. Contractors are for the most part sleazy, you want to mitigate this by paying them AFTER work is complete.
10% @ 1.5% points, is wild... I got in w/ 11.5% @ 3 points, after plenty of work from every side.
Post: Closing on 1st Investment property on the 31st
- Posts 18
- Votes 10
After all your amazing advice I ran and reran all of my numbers and have come to the conclusion that I will see what the house Appraises for and the new/better offer from my HML, if the numbers are significantly better than I project I will reconsider pulling out of the contract.
Not just one of my Brothers and Sisters in the Bigger Pockets Family but several have sincerely shared your time, advice and expertise. Thank you! I never knew I could find such wonderful people who don't even know me provide such value to my life.
Thank you So Very Much!
Post: Closing on 1st Investment property on the 31st
- Posts 18
- Votes 10
Quote from @Caroline Gerardo:
If you have arbitration in the contract , your agent is strong, and contract details you could fight and win the EMD appraisal and inspections would be a loss perhaps a write off if this is an ongoing business.
I would take the hit now and cancel and tell agent you need them to go that way and stop.
$120000 approx sales price total payment if no HOA $1470 with 20% down or $24000
Appraisal $500 closing costs $ 5000 (they may make you give 12 months reserves) inspections $900 4 points $4480
10 payments to get it repaired in the best of all possible worlds $14700 cost
repairs $30000 or more maybe $90000
you are in for $78180 loss before you rent the house and hopefully when you tear out you don't discover more problems
Maybe you can rent for $1300
Then cost to refinance which I pray you already have that loan approved and ready to go another $4500
Total expenses $82680
120000 value minus all those costs? There is no possible win. Value could go down, there's al big number of houses to rent in Houston lots of competition so yours has to be very appealing, value could increase in 4- 14 years.
If you could sell it after you fix it up you have no gain only losses.
If you don't have your refinance loan approved your only choice might be to sell - no one knows what that rate will be in the future.
read this one https://www.houston.org/housto...
Post: Closing on 1st Investment property on the 31st
- Posts 18
- Votes 10
Quote from @Caroline Gerardo:
Depending on state, if you have arbitration in the contract and contract details you could fight and win the EMD appraisal and inspections would be a loss perhaps a write off if this is an ongoing business.
What is sales price and state so I can tell you the total possible dollar loss of charging ahead
Houston, Texas - Purchase $116K
Post: Closing on 1st Investment property on the 31st
- Posts 18
- Votes 10
Quote from @Caroline Gerardo:
I don't know the location or sales price and no idea of square footage but foundation plumbing and roof let's just guess that's $90000.
Say the sales price is $300000 and you put 20% down your payment will be $3150 with tax and insurance
My guess the rents when you get this inhabitable in 10 months at the very fastest. Your rents might be $2000 and you have a $31500 loss for vacancy
4 points $9600 title escrow settlement transfer taxes and notary $4000
Can you qualify with w-2 and income taxes to refinance this in a year? Do you have that loan commitment in writing and you do not plan to change jobs?
Appreciation might happen in coastal areas at 3% a year but my prediction is everywhere else it may go down in the coming year.
Can you back out or get a better lender ASAP?
If l pulled out now, I'd loss, the property, earnest and appraisal fee...