All Forum Posts by: Paul Kogan

Hi Jon,
thanks for you reply. If I sell now I will probably loose ~ $20K on one and ~$30 on the other. I think it would make sense to wait and have the tenats pay off the mortgage, even if it takes years.

What about a short sale. Do you know if short sale have any affect on the sellers credit history?

Hi all,
during my first years of investing (about 5 years ago) I made a few successfull deals by playing the market. Unfortunately, I made some bad bets too and now I'm stuck with these 2 scenarios. Please help.
Scenario 1. Single Family -
purchase price $105, remaining mortgage balance $90K, I rent it out for $875 per month. I have about $100 remaining each month, but according to the 50% rule I'm in the negatives. I have some cash about $110K that I made on other deals. It may sound crazy during the credit crunch time, but I was wondering if it would make sense to pay the mtgt off and collect $875 per month, which will give me more than 10% return on the $90K investment plus it'll save me a lot of money in the long run.
What do you think?

Scenario 2 - 2 bedroom condo.
Purchase price $185, mtgt balance $145K, maint. $2000 yearly, rent $850. This is the worst investment I have ever made!:( I was hoping to sell it at the peak, but the market dropped way too quickly and now I'm stuck with it. Is there anything I can do with this property? It seems like to only logical thing to do right now would be to hold and wait until the market recovers. Any other ideas?

Thanks in advance,
Paul.

Hi Chris,
that's what my loan officer tells me and I made him aware of the fact that the property is a 3 family rental where I will be occupying on of the units.
Thanks for the input. I will follow up with him tomorrow.
Paul

Hi Mike,
thanks for you quick response.
The $10K expenses is what is showing in the listing but I agree with the 40-50% rule. Although,the seller took out a $50K loan to renovate the property because section 8 has high standards in NY. He did the roof, 3 separate heaters and bathrooms.

No, it's a 3.5% FHA with 5.2%. I may move in to the property for the first 6-8 months. So, the bank is treating it as owner occupied multi family. My loan officer suggested that I go with teh FHA rather than the conforming route. I will end up paying $150 mm PMI, but still come out positive. It's a short sale and the deal had fallen thru because the seller had changed his mind. So, I'm keeping my fingers crossed.
Thanks a lot,
Paul.

Hi all,
first of all I'd like to say that I absolutely love this website and thank you all for you input. In the past couple of weeks I have learned almost as much as I have in 5 years of investing in RE.
I need your help with this deal. I'm looking to take advantage of the market and get on this short sale deal. It's a 3 family house that grosses $4500 monthly. 1 bed,2 bed and 5 bed, all section 8. the expenses are ~9 - 10K annually and that's overestimating. I made an offer for $275K, I'm trying to get it financed with as little down as possible 3.5% - 30years, which will give me ~$1500 - 2000 monthly cash flow. I figured it will cost me about $25000 out of pocket to purchase this house and with the cash flow mentioned above it should pay itself in about a year. I'm looking at this as a long term investment 10-15years and don't really care much for appreciation (i look at it as a bonus:) ). My question is, am I doing the right thing by going with 3.5%? Can anyone suggest a better strategy. your 2 cents would be really helpfull.:)
the property is NY.
Thank you very much!
Paul.