All Forum Posts by: Noyessie Hubert

Ahoy, fellow New Jersey real estate investors! I'm a budding real estate investor based in North Arlington, NJ, seeking to learn from experienced individuals and explore potential partnerships and deals. If you're willing to share your expertise and guide a newcomer through the ropes, let's connect! Feel free to send me a private message to embark on this exciting journey together.

Don't have all those details. Please have a look at those links. I include the PMI inside the insurance.

PMI: $400 / month

Homeowner Insurance: $200 / month

- Using the current occupant's rent

- Using the median rent

- Using the average rent

I don't plan to use a property management agency. The vacancy rate is estimated at 5%.

Thanks.

Hi Nicholas, here are some details:

Address: Scoteland road, City of Orange, NJ

1. will rent all 3 units. the basement is half finished. I plan to complete that and live there. I'm never home so that's okay for me.

2. expected expenses: 

      - The main expenses will be to finish the basement. The other one will come after the inspection

2. All the unit are occupied and below market rent: 

     - Unit 1 : 2bedroom 1 bath . $1519 ( market median : $1875 , average: $1935, 25 percentile: $1579) 

     - Unit 2 : 2bedroom 1 bath . $1521 ( market median : $1875 , average: $1935, 25 percentile: $1579) 

      - Unit 3: 1 bedroom 1bath, $ 1612 ( rented at market value) 

     - basement: 50% finished 

3. other informations: 1 steam , 2 hot water boiler, 3 water heaters NEW- tenant pays all bills including water- TAX: ~$15000

I also have a lending in progress. I expect <7.5% interest rate on FHA loans.

Hi All,

I have this off-market deal that I found recently. The owner is asking 600k and does not want to pay buyer dealer fees (initially).  It is a 3-family property with a 50% finished basement and a car garage. The Redfin estimate of the property is 620+k and Zillow gives between 500k-630k.

Initially, the owner was not open for buyer agent fees and of course, my agent was not okay to work on that. I was okay to walk away but he contacted my agent and agreed to pay his fees. So I'm concerned if the deal is really worth it. I need an independent person who can help me analyze the deal. It is my first time.

Thanks.

Decided to go with a fixed-rate mortgage that I found at 7.5%. 

The ARM was too good to be true. After discussing with another agent, those rates were available for up to 2 units. The credit union doesn't finance properties that are more than 2 units.

Quote from @Account Closed:

Quote from @Noyessie Hubert:

Hi Doug

Thanks for the reply. As I understood from the agent, the reset dates are defined by those numbers:

- 3/5 means, the first reset date is in 3 years, and every 5 years later

- 5/5 means the first reset date will be in 5 years and every 5 years later.

It really looks like the Variable rate is the best because it is fixed for the first 3 years. So even if the interest rate goes up, I'm locked into 7.5 % ( let's take the worst case ) for 3 years. And unless the US economy is doomed, I don't see those interest rates continue to spike for 3 years straight.

And for me, is too good to be simple. So I had some small questions like:

1. Has someone already had to deal with ARM and refinance them? Can I refinance before the 3 years? After the 3 years?

2. You mention some calculations, I don't really understand them. Since I'm paying $700+ less, for me that means, I'm good. I'm putting 5% down, so I think it will take me more than 3 years to reach the 20% equity and be able to refinance. I plan to make extra payments to reach at least 20% equity on the 3-year mark. Please any resource or link that can help me understand and do the maths?

3. Any resources to understand the ins and outs of ARM? I'm not satisfied with what I found so far.

For the time being, based on your reply, I believe will apply to the ARM and see the real terms.

 Your comment: "- 3/5 means, the first reset date is in 3 years, and every 5 years later" 

when I was doing mortgages back in the subprime days, 3/5 meant that your rate would be fixed for 3 years then it could adjust every 5 months not years. You might want to ask your lender.

How Do Adjustable-Rate Mortgages Work?

To understand how all of these elements work together, let's imagine that a lender is offering a customer a 5/6 SOFR ARM at 3.25% with 2/1/5 caps. See this table below for a brief explanation, and we'll go into more specific detail below.

ARM Element	Element Name	Element Example
5 years/6	Initial rate and period	The initial rate on the loan is 3.250% for the first five years.
5/6 months	Adjustment period	After 5 years, the interest rate can adjust every six months.

 Okay, thanks. I may have misunderstood that part.

Hi Doug

Thanks for the reply. As I understood from the agent, the reset dates are defined by those numbers:

- 3/5 means, the first reset date is in 3 years, and every 5 years later

- 5/5 means the first reset date will be in 5 years and every 5 years later.

It really looks like the Variable rate is the best because it is fixed for the first 3 years. So even if the interest rate goes up, I'm locked into 7.5 % ( let's take the worst case ) for 3 years. And unless the US economy is doomed, I don't see those interest rates continue to spike for 3 years straight.

And for me, is too good to be simple. So I had some small questions like:

1. Has someone already had to deal with ARM and refinance them? Can I refinance before the 3 years? After the 3 years?

2. You mention some calculations, I don't really understand them. Since I'm paying $700+ less, for me that means, I'm good. I'm putting 5% down, so I think it will take me more than 3 years to reach the 20% equity and be able to refinance. I plan to make extra payments to reach at least 20% equity on the 3-year mark. Please any resource or link that can help me understand and do the maths?

3. Any resources to understand the ins and outs of ARM? I'm not satisfied with what I found so far.

For the time being, based on your reply, I believe will apply to the ARM and see the real terms.

Hi, I just spotted a 4-family room which makes sense for me and my credit union is offering a conventional loan mortgage for 5% down.  Here are the two options the lender offered to me:

- Option 1: 30-year conventional

interest rate: start at 9%

final rate from home appraisal

0 discount point

$0 origination fees

- Option 2: Adjustable rate 3/5 or 5/5

interest rate: start at 7%

0 discount point

$0 origination fees

I plan to take a loan for a $650k house with 5% down. I have a 770+ in credit score. I don't understand quite well the adjustable rate. Please can someone help me navigate over that?

- What questions should I ask?

- what is the tip when you consider an Adjustable rate? Can we refinance it after less than 3 years?

Thanks for your help.

I already got pre-approved.

- 750k for a 3.5% down payment loan with PMI

- 500k for a 3% down payment loan with PMI

- 500k with 0% down payment and no PMI. but only applicable for condo/single-family houses and with an APR starting at 7.1%.

Please can you last at my last answer? Just before you reply.

1. I can have a 0% down loan from Navy Federal without PMI with APR of around 7.1%. This covers only Condo and Single Familly homes.

2. I can start putting around 1500 per month in saving for the down payment.

3. I will be able to save 3k per month after the month of May. In fact, my income is 120k+ and If I'm not putting more than 2k now, is because I plan to get married before May. That's some kind of expense.

4. I check and saw that I can get approve for an FHA loan for up to 750k, but I need to put 3.5% down. But I don't know the interest rate yet. I just have the pre-approval letter.

5. I live in North Arlington, 7 mile for the center of Jersey City. Jersey City is like 5 min to New York. Most people live in North Arlington and Jersey City to go work at NY

So based on all that, did you recommend me to:

1. Keep saving for like 2 years and continue renting until I get around 35k to get a multi-family home ?

2. Other options ?

Thanks.