All Forum Posts by: Ryan Keenan

In looking for my 3rd multi family that I would owner occupy, my bank says i need 25 percent down, can I get a gift loan from my parents to help with the closing costs if I need it? I heard for investment properties you cannot get a gift loan but if I owner occupy would this work?

Thank you

0 Votes

Hi bp,

So if I put 25% down on a two family as a owner occupancy, can I do a live in flip and vacate/ rent it out in 6 months once the rehab is complete? or is there a 1year clause?

Thanks

Ryan

1 Vote

thanks for the responses

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Hello bp, question about cash reserves for the bank. Currently going for my 3rd property putting 25 percent down most likely being a owner occupied property. I'm using some of my own money plus 50 percent of my 40lk. My question is will the bank expect me to have reserves for all 3 properties? And will the remainder 50 percent in my 401k count?

Thanks!

Ryan

0 Votes

Originally posted by @James Nazario:

@Ryan Keenan,

I purchased a duplex in Waterbury about 4 years ago and what @Nelson Del Castillosaid is spot on. Waterbury, CT catches a bad rap and I can't speak to it's future trends, but there are some decent areas to invest in and since homes are so inexpensive it's an easy entrance into the REI game. But you really need to be laser focused on those certain areas and not stray outside of them unless you are a very experienced landlord.

I invested on the East end near the Cheshire/Wolcott line and it seems to be a nice area with a bunch of SF homes. I know people also find the Town Plot area on the West side a desirable place as well. I'm sure there are other areas people can comfortably invest in, but I have not decided to look outside of the ones I've mentioned

When it comes to cash flow, one of the big things you really need to pay attention to are the taxes, which are fairly high. Yes, there are homes that can be had for <100k, but if not figured into the analysis the taxes can ruin your cashflow. Also I wouldn't bank on much appreciation unless it's forced and you are buying at a significant discount.

Basically, what I would do is start researching and getting to know some of the different areas, create a strategy, run your numbers, and if you decide to pull the trigger, be VERY tight on tenant screening and managing, and it could be a great place to invest.

Let me know if you have any particular questions and I will do my best to help out.

Good Luck!

Thank you for your insight on waterbury and will definitely be taking my time while looking there.

Other then waterbury do you suggest any other good towns to invest? I have a Duplex in naugatuck which so far has been pretty good and one in bethel where the prices are too high. Currently looking for a single family under a 100k that can produce some cashflow. Seems like that price range is pretty scarce especially in looking for a good neighborhood .

Thanks!

1 Vote

Hello BP, was curious to see if anyone is actively investing in waterbury. I've been looking for a sfr under a 100k and seems like waterbury has tons. Is it worth it or am I asking for problems?

Thanks!

3 Votes

Originally posted by @Matt Mayo:

@Ryan Keenan

Was the house built before or after 1978?

The main concern is lead based paint. You can have the paint tested by a lead based paint specialist. If the paint is lead based, then you're stuck fixing it.

VA guidelines require that "The surface requiring treatment must be thoroughly washed, scraped, wirebrushed or otherwise cleaned to remove all cracking, scaling, peeling, chipping and loose paint and then repainted with two coats of a suitable nonleaded paint, or:

The paint shall be completely removed or the surface covered with a suitable material such as gypsum wallboard, plywood or plaster before any painting is undertaken if the paint film integrity of the surface needing treatment cannot be maintained.”

It doesn't necessarily have to be completed by a licensed contractor, so that could potentially save you some money in the short term.

Also, are you taking cash out?

If not, you can refinance using a VA IRRRL, with no appraisal needed.

Yes trying for a va cash out refinance, basically just renovated the whole house minus the siding.

House was built in 1964

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Originally posted by @Matt Mayo:

Ryan Keenan Is the paint chipping on the whole exterior of the house? Usually the appraiser will call out the specific areas that need repairs.

Thanks for your response, he called out 2 spots and took pictures. He said that they were samples of what I have to fix through out the house. He even called out chipped paint on the deck.. I bought the house a year and a half ago with very little issues about the paint and it was a va loan. . Frustrating.

1 Vote

All Forum Posts by: Ryan Keenan

Ryan Keenan has started 118 posts and replied 322 times.

Post: Owner occupied property

Post: Owner occupied property

Post: Owner occupied property

Post: 25 percent down and occupancy

Post: Having cash reserves and 401k

Post: Having cash reserves and 401k

Post: Investing in waterbury ct

Post: Investing in waterbury ct

Post: Va appraisal and chipping paint

Post: Va appraisal and chipping paint