All Forum Posts by: Page Huyette

When I first read your post I thought water intrusion or broken pipes. I've seen floors bowed in older houses due to pipes that have burst and caused this type of thing, but hopefully it's something easier to deal with than that.

But, since you were asking opinions, thought I'd throw that out there. Good luck tracking down the problem, I think you are wise to address it now rather than hope it's not a problem with the end buyer.

Is it possible to convert funds from retirement accounts other than Traditional IRA's into self-directed IRA's?

Wonderful responses from BP members, as always. Love you guys.

Met with my banker today and got some discouraging updates, but let him know that I'm the tenacious type, just in case he was wondering. The deal seems more out of reach than it did just hours earlier, but I appreciate Frank G's comment and others that they may not have all the info they need.

Turns out that, based on my somewhat conservative estimate, using the LOC on our primary for the down won't get us as much as we need to pull of a 25% or (possibly, if lucky) 20% down for the property. The bank didn't shut the door, just said "Let's see where the appraisal for the LOC comes in on your primary residence." I don't want to rely on that, since I know appraisers in our area have been conservative of late and think this is a good enough deal to burn some more midnight oil on to find other methods of funding. Hard money? Not sure how that plays into a loan scenario for this propert--specifically, how it's viewed as a down payment financing option. Thoughts anyone?

That's why I love working deals like this--so many variables. I am always optimistic, and the worst that can happen is that it doesn't work, but I've learned volumes that will apply to this deal or perhaps another.

I always keep my eye on the prize, assuming that it WILL work out. Having advice from those of you with more experience in my back pocket makes this journey even more exciting.

Thanks guys. Its a local bank I've done business with before. They have in-house loans as well as ones they broker for other banks.

I'm considering purchase of an REO triplex and am wondering if it's prudent to share the investment analysis from my agent to the bank I'm hoping to secure financing from (not the bank that owns the property)? Her analysis is more conservative than mine, but relatively similar.

Just wondering if sharing this information is standard, or optional. This is my first investment financing package (not owner-occupied) so I'm not sure what details they need on the property beyond our personal financials for financing.

I'm looking into using our current residence to pull a LOC for the down--we have a decent amount of equity, and I'd rather use that for a better rate than pay private or hard money rates if I can do so.

As for it being the deal of the century -- it needs work, work that can be done but work that might be daunting to most. Plus the fact that it doesn't have tenants in place means no instant income. Let's call it an tired diamond in the rough.

I suppose it depends on what your interpretation of a deal is--I like fixers. As long as it's the type of fixin' that makes sense.

I'm leaning towards installing submeters for each unit to deal with the water issue, which look like they run a couple hundred up to about $700 installed. Probably install ourselves and pay the submeter company to bill the tenants, with us paying the water co. directly to avoid the scenario mentioned.

[Kyle Hipp] thanks for sharing your experience. [Ibrahim S]--Thanks for the reminder. I've dealt with city/county folks in planning regularly for my other business, even schooling homeowners on what to expect from municipal employees when going through the permit process. You are quite correct--I'll check on OPRA and try another approach at the water/utilities counter this week. Thanks!

There are several great spreadsheets on the BP website in the Resources section that should help you work up actual numbers which should include vacancy, repairs, maintenance, tax increases, etc. beyond just PITI. This will give you a clear picture of what the property will cash flow.

Yes, tried that. It's a utility provided through the city, so they won't release information to anyone but the owner, and even then only usage under their ownership. So, I'm searching for utility info on comps in the area.

A triplex were researching for purchase already has a coin op washer/dryer installed in the common basement area. Wondering if anyone has some general information on profits per unit.

Property is bank-owned so I can't get info from the owners, and the former PM won't answer my calls, so I'm trying to determine what the potential profit might be to offset the water bill for this amenity.