All Forum Posts by: RJ Dixon

@Ian Walsh

This was the Vice President of a mortgage company. They sent over a mortgage commitment letter and we did nothing on our end to break it.

@Roman M.

Interesting. Thank you

@Wayne Brooks

I’ll speak with my agent. Appreciate it

@Chris Mason

You don’t think when house hacking not to use fha ? I understand they have more guidelines but going in at 3.5% and living for free. All in cash +\- 40,000. Cash flow 1,000 a month. Of course this was a slow play when each tenant moves out update the units and bill back electric. I couldn’t swing 25% down on this as I have most of my cash tied up in another deal.

@Dana Whicker

It was 13k because it had 2 building. A duplex and a small stand alone. Margin are real tight but it cash flows 3200$ as is. We were going in for a value add on it as well.

@Shaun Weekes

Yes the roof had about 3-5 years left but this was a long term hold so we were just going to replace it. Inspection had no surprise. It was mostly From my understanding FHA guidelines or at least that's what they are blaming it on

@Shaun Weekes

Almost 2 months in escrow. Past all due diligence and contingencies. It all started when the lender ordered the appraisal late which then pushed everything back. Then that appraisal came back as an as is appraisal which needed it work to be completed we went ahead and completed some small work to abide by the FHA standard. After that the communication was not great as me and my agent called and emailed every day for updates. Somehow when the file got re-open the underwriter noticed that the roof was no good. That then Pushed further into the timeline as they had to find out if they can do an escrow holdback which we ended up agreeing to. Then today I get a call that said we have to order another appraisal on your other properties that you own because the rental income has not been two years. With that new news that pushed it back which is when the seller will not agree to extend it again because they are losing faith in the lender. It was also a bunch of other little things that my agent and I could not believe but just to keep this short.

Hello BP world !

Name is Rj just started getting into real estate investing. I am currently working on my 3rd deal but never thought this would happen. I am currently working on a triplex that we put 10k in escrow. I was going to use a FHA loan to house hack. My lender who I worked with before did not do a great job to say the least. They extended twice and want to do it again but the seller does not want to. I have looked into hard money which I used before being what I think is my best bet. I also tried to reach out to the seller personally to get that extension. They have no backup offers but stated they have people interested. I just don't want to lose 10k. Would the seller consider splitting escrow ? Any suggestions on how to go about this ?

The numbers are

220 under contract

15k rehab

230 as is

265 ARV

Appreciate it

Hello BP

I am currently in the process of buying a triplex. My question is about the AC. All 3 units have window units. They all also have central AC units hooked up but not being used not sure if they work or not. Should I keep the wall units or run central AC ? I know the cost is lopsided. The units at 450,850,1400 square feet. Thanks for your input.

Cheers

Hello BP !

I currently have a triplex under contract with a FHA loan as I'm going to house hack. Each time a tenant moves out I will rehab each door. My problem is I didn't know FHA is a sticker about certain items and my lender didn't tell me. My fault should of done more research. Especially when this house was built in 1920. Once I got back a " as is " appraisal I feared for the end. The appraisal stated, " Soffit and fascia has damaged wood with peeling paint on 2 story building and it needs to be repaired/replaced, paint scraped and the area re-painted. The exterior stairs on the side of the 2 story building, leading up to unit B, has damaged wood/peeling paint and needs to be repaired/repainted. Detached studio has overgrown plants which needs to be cleared." Now might I add that my realtor and I emailed for this appraisal to be done weeks ago. I finally got it back a week before the closing date. I knew all this above had to be done as I'm coming in to rehab. I already have a roofer because I'm going to replace both roofs instead of just patching as this is a long term hold. I also have a couple handymen. My question for you is what are my options? I don't think the seller is going to pay for anything. I suggest I can put money into escrow for the rehab cost and also suggest I will do the work before. I have 10k in escrow for the closing so I can't simply walk away or want to as this is a good deal. The lender said let's see what the underwriter says. Any creative ideas ?

Cheers