All Forum Posts by: Ethan S.

Hi, I am very interested in a home in Sacramento and it needs a cash offer as it needs some rehab and has some termite problems. I will be moving to Sacramento this week and would like to go take a look at the house. I am hoping to find an agent who has good relationship with local termite companies and general contractors and can get me a great deal on the rehab/termite treatment. I would like to get a approximate rehab cost when we go see the property. please let me know if any questions and my email is [email protected]. Thank you.

@Tom V. The other houses have big lots also in the range of 6000-10000 sqft. but didn't see any in the 1/2 acre range. I will check with planning department. thank you

@Michael C. Thank you.

Hello, I am very interested in a property that is currently on the market for ~150k. I am attracted to this property because of its proximity to a nice neighborhood and the 1/2 ACRE! However, because of termite problem, it came back on the market (another buyer) and is requiring a cash buyer. I would like your help BP!

1. I would like to hear from experts here who had some experience with R1 zoning homes on a big lot. what are some issues other than the permit needed from the city for the expansion? I would like to live in one and rent out rooms to individuals since I can't pursue to build a second property on the lot.

2. Is there any other options than to expand and hope to rent out rooms on craigslist?

After speaking with the listing agent, she thinks that a cash buyer will be able to negotiate the price down to some extent since the seller is not willing to fix any of the problems. The average going price for houses in that neighborhood is around 200-250k on a smaller lot with similar bed/bath conservatively.

Any input is very much appreciated..

CORRECTION

It says the loan is for owner occupied home and not primary residence. So my question is how do banks verify that its owner occupied home?

Is primary residence on the loan sufficient to show that its owmer occupant home?

Hello BP,

A credit union I use offers some great rates on home equity loan currently but it says that the home must be a primary residence.

I purchased a townhome a year ago and took out a mortgage as a primary residence. I have been living with parents though and rented out the townhome. How do banks verify that its my primary residence when I take out a home equity loan?

I haven't filed my taxes yet but I am going to claim the property as an investment so my DTI gets better for future investments.

Is there a legal consequences if I take out the home equity loan?

Thank you!

@Will Barnard Thank you for the analysis. spliting 4/2 definitely souds like a better deal in both finding tenants and cash flow. I will definitely look closely into deferred maintenances and see how much that will add up also. Thank you again!

@William T. Thank you for your response. It does seem like the margin is very slim if any.

@Shaun Reilly The property is located in downtown Las Vegas. The property definitely doesn't look like the Bellagio so I am guessing there's also big fixes once purchased. I definitely underestimated the mortgage payments for commercial loans. As you mentioned, now I can see why 4/2 would be vacant as neighborhood is not too nice either in addition to the creepy men nearby.

Time to listen to more podcasts and educate myself more!

Hello BP,

I am interested in a 7 unit complex currently on market for 160,000.

7 unit complex, six 1/1 and one 4/2. currently, four 1/1 are occupied at 400 each and one 1/1 occupied at 200 for custodian on site

current rent = 1800 (with 3000 total potential;400 from 1/1 and 800 from 4/2)

PM = 350 (i think it's high)

Taxes = monthly 110

utilities = 120

insurance = 120

current NOI = 1100 (~2100 fully occupied?)

25% down 40k and finance 120,000 (~650)

1100-360 (10% vacancy and maintenance each) = 740

with 2 units vacant, still 90 dollar positive cash flow

seller states that the two vacant rooms are rent ready.

Is this a good deal?

Hi Barry I am looking for <150k properties that comes close to 2% rule =). pls see PM for details.

Hey Andy, I have not looked in Texas areas but I definitely will. Is there any specific areas in texas that you are looking into?

Thanks