All Forum Posts by: Account Closed

I do truly appreciate all the responses and everyone taking the time to answer my rather 'beginner' question. 

Thanks for all the advice. 

Maybe I should have mentioned some financial info first: 

I have about $80,000 in cash and a credit score of 740. I can also get a co-signer if need be. For those reasons, I know I can get a loan for the property and will be pre-approved no problem. 

The cloudy area for me really is what type of loans are available out there? My goal (I am sure it's everyones goal) is to try and put as little of money down as possible. I just didn't know if that's possible with non-owner occupied purchases. 

@Penny Clark thanks for the FHA loan advice. That was one of the venues I was exploring but I didn't want to live in one of the rooms if I didn't have to. Do you know how strict they are with that? I would still claim the house as my primary residence but would still like to rent out all the rooms.

@Paul Defngin It's a single family house but I'd be renting it out. I am assuming that falls in the commercial loan category? 

Hello, 

I am very interested in making my first real estate investment purchase but am a little stuck on the first step I need to take. I have a Realtor who has shown me a house that the numbers look good on and I want to make a move on. I am stuck on the next steps. A few questions I have: 

1) The list price of the property is at $319,000 and we are thinking of making an offer of $295,000. I am a complete newbie on how to go about getting a loan. What are my options as far a down payments are concerned? From reading online, it seems as if commercial loans all require a 25% down payment. Is there any other loan out there that I can look at, which will require me to only put down 10-20%? 

2) Just a high level overview:

Monthly Rent: $2,950
Property Taxes: $6,500
Offer Price: $295,000

Just based on those high level numbers - do they make sense? I have been running them through spreadsheet after spreadsheets and everything keeps telling me yes, but I just want to be sure. 

Any help, any blog articles, any books, and references on where I can learn more about loans would be great. I am based in the Central Jersey area. 

Thank You

New to all this so hope I my question is clear enough... I have $100,000 saved up towards a property. Rest all being equal, is it better to purchase 5 properties valued at 100k each (20% DP) or one property at $500K. -is there a huge learning curve and am I better off learning with a $100k property over $500k. -I'm only looking in college areas where occupancy is 95-100% granted damage might be slightly more depending who it is rented to.

Hi - I am looking into my first property and was hoping to share the numbers and get some feedback in case I am overseeing something.

Also, please feel free to give general opinions as far as what I should be on a lookout for, things to consider, anything as to avoid a rookie mistake.

Asking Price: $494,000
Offer Price: $470,000

Down Payment: 20-25%

Monthly Income: $4000/Month

Property Tax: $7000 /Year

All Utilities paid by tenant.
Insurance: $1200/Year
Upkeep:$1000/Year
Snow Removal/Garbage/Misc: $1000/Year
Mortgage Expense: 30 year @3.75% ~$1800/month

Total Income: $48,000
Total Expense: $10,200 (Property Tax, Insurance, Snow Removal Etc) + $21,600 (Mortgage)

Net Income: $16,200

This is my first property that I am seriously looking at. I am not too familiar with mortgages and all so any help in that area would be greatly appreciated as well.

Thanks!

Hi - I am looking into my first property and was hoping to share the numbers and get some feedback in case I am overseeing something.

Also, please feel free to give general opinions as far as what I should be on a lookout for, things to consider, anything as to avoid a rookie mistake.

Asking Price: $494,000
Offer Price: $470,000

Down Payment: 20-25%

Monthly Income: $4000/Month

Property Tax: $7000 /Year

All Utilities paid by tenant.
Insurance: $1200/Year
Upkeep:$1000/Year
Snow Removal/Garbage/Misc: $1000/Year
Mortgage Expense: 30 year @3.75% ~$1800/month

Total Income: $48,000
Total Expense: $10,200 (Property Tax, Insurance, Snow Removal Etc) + $21,600 (Mortgage)

Net Income: $16,200

This is my first property that I am seriously looking at. I am not too familiar with mortgages and all so any help in that area would be greatly appreciated as well.

Thanks!

Originally posted by @Elizabeth Colegrove:

Is this a rental property or a personal property? I personally am going through a few a rental and the current interest rate is 4.85.  

 A rental property. I will double check the interest rate but for some reason I had assumed I'd be able to get it at 3.75 

Hi - I am looking into my first property and was hoping to share the numbers and get some feedback in case I am overseeing something. 

Also, please feel free to give general opinions as far as what I should be on a lookout for, things to consider, anything as to avoid a rookie mistake. 

Asking Price: $494,000
Offer Price: $470,000

Down Payment: 20-25%

Monthly Income: $4000/Month

Property Tax: $7000 /Year

All Utilities paid by tenant.
Insurance: $1200/Year
Upkeep:$1000/Year
Snow Removal/Garbage/Misc: $1000/Year
Mortgage Expense: 30 year @3.75% ~$1800/month

Total Income: $48,000
Total Expense: $10,200 (Property Tax, Insurance, Snow Removal Etc) + $21,600 (Mortgage)

Net Income: $16,200

This is my first property that I am seriously looking at. I am not too familiar with mortgages and all so any help in that area would be greatly appreciated as well. 

Thanks!

Currently we have $100,000 in cash. 

I own 2 businesses and they both are in year 3. In year 2, we generated about $50,000 in profits from one business (50-50 as I split it with a partner) and $30,000 in profit from the other.

My credit score is 740. 

My two main questions:

1) Since I don't technically have an income because the money we earn just goes in the bank account, how can I show to the banks that the mortgage will be paid. Can they look at the business income? 

2) Since I have $100,000 in cash and a above average credit score, how much can I leverage that cash? Can I look into properties that are lets say about $700,000? I know the standard down payment is about 20% but there are loans where I can put less money down. I would be looking at a multi-unit property. 

I am 25 years old and relatively new to the whole real estate investing world. Hope the information about is straight forward and not ambiguous. Thanks for your input!