All Forum Posts by: Mark S.

Robert Leonard , thanks for responding. It sounds like the term "overlay" that I've heard before regarding HomePath loans. For example, it may be 10% down but that lender requires 20% because of their internal overlay component. What I'm hearing so far is that it might not be worth it. In my case, I am planning to offer on a property on Monday and have all my stuff lined up with a lender, but they're not a HomePath Renovation lender. Sounds line too tight of a time frame to call up a HomePath Renovation lender out of the blue, get all my documents sent in, get a pre-approval letter back that day, and get my offer in. I might lose the deal if I don't act quickly enough. Sounds like I may need to just go conventional and scrape some pennies together for repairs out of pocket.

John Pearson , thanks for responding. It sounds like I would have limited control and would be better off just paying out of pocket and using whoever I want for the repairs.

I've read on the HomePath site that HomePath Renovation Loans will allow repairs up to 35% of ARV to be rolled into the loan up to $35,000, even for investors. Are there additional costs to this type of loan to be aware of? Who determines cost of repairs and ARV? Do I need to submit a written estimate? Do I also have to pay for an appraisal pre and/or post repairs? Do the repairs have to go through a "pre-approved" vendor or can I use anyone? On a relatively small rehab budget, I'm wondering where to draw the line as to whether or not obtaining this type of loan is "worth it." Will this effect the probability of whether or not an offer is accepted (versus, say, conventional financing)? Thanks in advance.

As others have said, I'd bet that he's referring to $1,300/month gross rents, not Cashflow.

Matt Mason , I have re-run my numbers with 12% vacancy and they still look acceptable with a purchase price in the low to mid 50Ks.

Brandon Bohland , I've never heard of the multiply your rent by 50 method before. I guess that's similar to the 2% rule, but different way to calculate it. Very neat. Thanks for sharing your thoughts. Much appreciated.

Engelo Rumora , that's awesome. How in the world are you getting $1,500/month rent? Maybe a better question is how in the world are you able to buy that for only $23,000? Any competition or other offers? How much work does it need? Dang!

Pat L. , nice work. Engelo Rumora , thanks. There's no way this would sell that low, unfortunately. I've offered on similar deals at about 70-75% of asking and got beat every time.

That's probably because I'm planning to purchase this thing for under $60K.  Sounds like a huge green light so far.

Well, maybe you should change your title.  ;-)