All Forum Posts by: Jim Stevenson

@Nate Jones Thanks, Nate. I will definitely reach out if I need some help.

Thanks all. I figured this was the case but was curious...

If I take a gift from a friend to cover the entire 20% down payment for an investment property, can I then pay that friend back with a personal loan? Would that be considered mortgage fraud? Can a non-family member even contribute gift funds for a down payment?

@Jameson Sullivan yeah I agree, just running some numbers for practice. Thanks for taking a look!

@Brent Coombs My balance after 1 year on the Lending Club loan would be 22,452 but you're right, the hardest part would be finding a lender to refinance less than 50k...

@Jameson Sullivan I'm not sure exactly what my new payment would be..where did you get the 600 from?

@Jameson Sullivan Sorry, I'm factoring in 1300 for taxes, 960 for insurance and 1500 for trash/sewer/water/miscellaneous although that should probably be lower

@Jameson Sullivan I say it's negatively cashflowing because I'm paying the loan at 629 a month so I'm in the red after I take home the 305. The rent would be 850

I'm looking at a SFR in northeast PA that is listed for 18k but I can probably get it down to 15k. It's in pretty good shape and would require about 10k to get it rent ready. I can get a Lending Club loan for 30k at 629.18 per month (9.44% interest rate) for 60 months to fund the purchase price and rehab. It would end up cashflowing 305.50 when accounting for 10% vacancy, 10% repairs and 8% property management. It would most likely appraise for 35k after a year and at 70% LTV I can pull out 24,500 and then pay off remaining balance of the loan.

Since this would technically be negatively cashflowing -$323.68, would this be worth it? Am I better off just trying to finance 20% of the purchase price?

@Joseph Cornwell Congrats man!! Definitely motivating to see such great numbers!