All Forum Posts by: Jonathan Perez

I did that. Repairs cost $435 Replacing both systems is $7845. Because it's 30 years, I personally feel like it should be replaced because who knows what could happen in a year or two. Especially considering the fact that I'm House hacking it and must do so for at least 3 years because I'm using a down payment assistance program that requires me to..

The duplex I have under contract has a few minor things to repair. One of the things I'm most concerned with is the HVAC system. The exterior unit and the furnace was manufactured in 1987 (which is when the house was built. The inspection called for a few repairs but didn't recommend a replacement. I feel like due to how old it is, it could break down within the next year or so and that's a pretty big expense for me to get hit with. I was thinking about asking the seller to replace it. What do you guys think? Also, just to note, I was going to pay what he was asking for, maybe I can even ask for a couple thousand knocked off the purchase price? Idk, let me know what you guys think...

I love the responses. I've got a duplex under contract right now with tenants and their rents seem to be awfully low. I'm going to raise it as soon as the leases are up. They're at $625 and I'm seeing near by ones going for 725-750. I want to raise it to at least $700. I'm thinking about offering them a choice of either renewing the year lease and paying the $700 or they can do a M2M at say, $800. I figured if they see the numbers layed out next to each other, their subconscious won't see the $700 as such a bad deal compared to the $800. That, along with what Douglass Benson was saying about "detailing...what the current market rate" is going for would be written just above the new numbers..... I'm thinking that'll be a good way to do it..

Lawrence Henkel III So, the $7,500 down payment assistance would result in an extra $208 to my monthly net cash flow? In my case I've calculated a monthly net cash flow of $110. So add the $208 to $110?

Originally posted by @Lawrence Henkel III:

If you take the assistance and stay 3 years you essentially get about $208/month in profit for the unit you will live in. $7500/36 months. If you don't take it and move after 1 year how much profit will you have after all expenses are paid? To make it equal I think you would actually divide the $7,500 over 24 months since in either case you will occupy it for a minimum of one year. So if you can make more than $312.50 in profit per month after all expenses you should not take it.

 You mean if I CAN'T make more than $312.50 in profit per month after all expenses, I should not take it?

So, I started this down payment assistance program course thing. I'm eligible and it allows me to buy a duplex and lets me rent the other side out while I live in one of the units. Of course, it requires that I occupy the property. I MUST live in the property for a minimum of 3 years tho. I thought "heyy, why not? they'll give me up to 7,500k towards my downpayment, and I have to put in at least 3k." 

I think this is great, however, my INITIAL PLAN was to house hack it for ONE year (which is what my FHA loan requires a minimum occupancy length of) and after that year is up, I was going to try to start looking for the next investment.

So if I stick with my initial plan which was to move on to the next after that first year, of course I'll have the unit I live in on this first one rented out and that'll of course maximize my cash flow for this investment. IF HOWEVER I follow through with the down payment assistance, I would have to stay there an EXTRA TWO years before house hacking my next property. So I just wanted to see what you guys in the community thought about this. I know it depends on what I PERSONALLY want to do and how fast I want to do it and all that but I want to hear your opinions...What would you do? what are some other things to consider?

Does anyone have a good home insurance I can get a quote from in Columbia SC? My current insurance would be included in the mortgage and it calculated to about $88/month.... I have a duplex under contract over in the 29206 zip code.. I need a good insurance for it and a good lawyer to have on deck. Please let me know if you know of any credible ones. Thank you.

@Kevin Siedlecki You're right about "walking into the middle" of an eviction. Doesn't sound fun at all. I'm going to ask the PM about that for sure. And as far as insurance it's included in the mortgage but I am going to see if I can get quotes for something better, Also need to find a good lawyer.

So I got my offer accepted and now next is inspections... There is currently a PM in place and they were in the process of evicting a tenant. What should or could I do to prepare for and after closing??? maybe ask the PM for the lease in place? maybe ask for a statement of expenses? can I even ask for that stuff? what about bank account should I open up on NOW or wait till after closing? Let me know what you guys think I should get in place ahead of time. 

Originally posted by @Rob S.:

@Jonathan Perez Make sure to have the tenants and current owner/seller sign an estoppel certificate before closing. All the best!

 An estoppel certificate? since I'm using an agent and so is the seller, how can I ask for that? just tell my agent?