$8,500 house total cash purchase price/$6k renovation/ rented for $575 per month final update with post renovation pictures Real Estate |
- $8,500 house total cash purchase price/$6k renovation/ rented for $575 per month final update with post renovation pictures
- Bank statements for underwriter
- How Do You Deal with FOMO When Househunting?
- How does equity work when refinancing?
- Any experience or knowledge about Appraiser career with government?
- Need some clarity on financing 3rd financing addendum
- Finding an EBA for FTHB, <200k home, Texas
- Help with transferring house deed in my name (US -OR)
- Is there a workaround to the sizable down payment needed for an investment property?
- Listed our house 2.5 years ago, it didn't sell after being on the market for 5 months. We're considering again, but have questions...
- Work remotely, not tied down, looking for a 400k (or less) dream house in the US
- Becoming an agent - Relocating
- San Diego, What risks are involved with letting my friend, who’s a new realtor, be my agent.
- How to Determine Future Value of Land?
- After a loan application, should a LO provide a Loan Estimate or Worksheet?
- Offers Dilemma
- Water Accumulating in yard, but away from House - Should that be on the PropertyDisclosure?
- Lower rate without PMI, too good to be truth?
- Help
- Home Buying question
- PMI Question
- Property Tax issues in Florida
- Calculating Value of Home After Adding Additional Bedroom?
- buyer's contract includes donation to charity by seller - is this legal?
| Posted: 23 Jan 2020 11:57 AM PST This is the final update to the post I made recently about the house I purchased for $8,500 cash. You can read that post and see the "before " pictures here. https://www.reddit.com/r/realestateinvesting/comments/ejlf5x/8500_house_deal_breakdown_yes_i_really_bought_a/ In that post I explained we had a budget of up to $8k...many people were skeptical whether or not we could renovate the house for that amount! I don't blame them, it wasn't a pretty sight. I'm happy to report we beat that budget by just over $2k, with the final renovation budget coming in at $5,968. A link to the post reno pictures is at the bottom of this post. The breakdown ended being just about 50/50 between material and labor. Labor was $2,860, materials were $3,108. The work included major cleaning of everything, painting all surfaces (including floors, walls and ceilings) with Killz to remove the odors, we replaced the subfloor in about 90% of the house, laid new vinyl plank flooring over that, repaired/replaced most of the plumbing, added a new 220 line for a dryer, replaced all the outlets, replaced all light fixtures, ran new gas lines for the stove and a new ventless gas heater, repaired the kitchen cabinets and counter top, added new hardware to cabinets, repaired windows as needed, painted everything, bought a "new" used fridge, and I'm sure a lot of little odds and ends I'm leaving out. ARV is estimated to be about $50K. We rented it to a couple from our wait list for $575 per month. This gives us a gross monthly ROI of 3.97% (almost made it to 4%!). Since a lot of you have expressed concerns about the quality of tenants we get on houses like this, I thought I would give you their numbers without exposing any private data. The husband works for a economic security place doing weatherization for low income housing. He makes $2300 per month. The wife is a bank teller and makes $2000 per month. They currently have no children and no pets...although they are allowed to have pets and have a large fenced yard here, so they might get a rescue dog in the future. Although we listed this as a one bedroom, the utility room runs the entire width of the house, so half of that could easily be used as a bedroom (there is already a closet there) and there is a small area at the end of the bathroom hallway that could be made into a nursery or used as storage...so they have some room to grow if they decide to start a family. As always, feel free to ask questions! Once again the pictures are not meant to be professional quality. I had to use a few "during construction" pictures since we didn't do a very good job of photographing everything after it was completely finished. I think they give you a good idea of the final product, though. https://imgur.com/a/ZKizY6Y [link] [comments]  |
| Bank statements for underwriter Posted: 24 Jan 2020 04:12 AM PST I've been conditionally approved but the underwriter wants a bank statement showing the second half of the earnest money clearing our account. My statement won't be generated from TD until Feb 23rd which is cutting it very close to closing. Has anyone successfully gotten through this with screen shots of thier account clearing or getting some kind of statement early to prove funds cleared? [link] [comments]  |
| How Do You Deal with FOMO When Househunting? Posted: 23 Jan 2020 07:15 AM PST My wife and I are just starting the process of purchasing our first home here in Los Angeles. We went out with our realtor for the first time this last Sunday and saw about 10 listings that day. We had one house that really stuck out to us that we can't stop thinking about. Basically, if we were a few weeks or months further into the process we would have probably put an offer in. We obviously just started so we're trying to put it behind us but how does everybody feel with FOMO on something that just stuck out on your first day or just any day? The house received multiple offers with 1 backing out and one rejecting the counter so we may go back and do a deeper look this weekend. [link] [comments]  |
| How does equity work when refinancing? Posted: 23 Jan 2020 10:27 PM PST Say I want to purchase a house for $200,000. I have $40,000 as a down payment. Therefore, I have 20% equity in the home. If the house were to be appraised, at the time of closing, for $220,000 (for whatever reason, the house sells for less), I'd still only have my 20% equity and not ~27%. Correct? Now let's say I want to refinance my home (originally purchased for $200,000, with $40,000 down and 20% equity). I have $100,000 left on my mortgage and the house gets appraised for $250,000. I refinance the $100,000 (ignoring fees for simplicity). Do I now have 60% equity (remaining mortgage/appraisal amount), or 50% equity (remaining mortgage/original purchase price)? In other words, does equity differ between purchasing and refinancing? When I purchase a house, the LTV I have his [mortgage]/[purchase price]. Where as when I refinance it is [new mortgage]/[appraisal]? [link] [comments]  |
| Any experience or knowledge about Appraiser career with government? Posted: 23 Jan 2020 09:55 PM PST I've done a quick Google Search on pursuing an Appraiser career path and I've seen so many negatives. Comments are saying how residential is low paying and going commercial is still a ton of work and risk of losing a deal. I was wondering if this is still true if I work for the government full-time (not as a contractor)? I saw the job opportunity and applied but I'd like to know if the career is worth pursuing? [link] [comments]  |
| Need some clarity on financing 3rd financing addendum Posted: 23 Jan 2020 11:26 PM PST Hi, So I just spoke with the realtor on the house that I'm interested in. And he just emails me a list of 3rd financing addendum to sign. So is there something I should review or look out for before signing it? Or I can just assume that everything is all right that I can sign and send it back to him. I'm not sure what to ask him for clarification so please advise. [link] [comments]  |
| Finding an EBA for FTHB, <200k home, Texas Posted: 23 Jan 2020 05:25 PM PST I'm buying my first house this spring, in the DFW area of Texas. Here is some of the background info:
*edited to fix a number Yes, I know I did the prequal too early, and I'm going to have to do it again when I'm ready to buy. But I did that because I wanted an idea of what I would qualify for and how much I would need to put down. So all that being said, my question is about using an Exclusive Buyers Agent. I've done some searching, and best I can tell there only seem to be two or three of these agents in my county. And the impression that I get is that their clientele is pretty high-end. I'm talking 250k+ houses, which around here is pretty high end. Would they even give me the time of day? Is it worth bothering them? Or could I use an agent that can function as both buyer and sellers agent, risking conflicts of interest and so forth. TIA for any advice. [link] [comments]  |
| Help with transferring house deed in my name (US -OR) Posted: 23 Jan 2020 06:55 PM PST Here is some background: I moved back into my late parents house in OR early this month. The deed is in my mom and dad's name and both parents are now deceased (mother in 2011, father in 2019) This is my first time getting a house deed transferred. Unfortunately, they never left a will stating who to transfer property to, so I think I may have to end up in probate court. This is the biggest part I dread. Unfortunately, I am unemployed at the moment, but looking for work, so can't afford a real estate attorney right now. I apologize if I sound ignorant, but what steps should I take to get this resolved? [link] [comments]  |
| Is there a workaround to the sizable down payment needed for an investment property? Posted: 23 Jan 2020 10:24 PM PST Could you put 5 percent down on a home, claim it will be a primary residence, then immediately rent it out? [link] [comments]  |
| Posted: 23 Jan 2020 10:08 AM PST Maybe this isn't an uncommon occurrence, but we're considering looking to find another home that fits better with our family of 4 and there is a lot of apprehension in listing our house again. With little kids (who are somewhat bigger now), it was a big strain on everyone last time to keep the house staging ready for 5 months. Then having people come over at all sorts of times. I've been reading about Zillow and Opendoor type sites that seem to promise to eliminate those sorts of things. Are there any alternatives to turning our life upside down in order to sell our house or is this just a necessary evil? [link] [comments]  |
| Work remotely, not tied down, looking for a 400k (or less) dream house in the US Posted: 23 Jan 2020 05:15 PM PST Made a throwaway for this, but I thought I'd try and expand my horizons by asking for some suggestions here. I'm early 30s, single, and work remotely. I just had an offer rejected on an incredible (to me) house near Taos, and am taking a step back and trying to consider other locations as well. I loved this house because it was: not too big (I don't want to live alone in a cavernous mansion) - 2bd, 1600 square ft on 2+ acres with incredible views, flagstone patio, open land beautifully constructed adobe-style house with huge windows, great tile and word work, kiva fireplaces, etc Near a town that has some culture/character/food Near outdoor recreational options Strong Airbnb and rental market if I want to travel in the future The major cons of Taos for me are distance to an international airport, and the small dating pool. But I was willing to compromise. Nowhere will be perfect with my budget. So if you were free and looking for a home (it's a plus if it's a good investment, but I'm first and foremost looking for a house I love and want to own for a while), what other markets would you look in? I'm coming from the Denver area, where a 400k house is a starter home. All of the Colorado mountain towns are pretty expensive by now. The Portland area is on my radar. I don't want a house with white cubic rooms. Not saying I want an Earthship either, but something with character, something inspiring. Brand new or 80 yrs old and needing some work, either way. I'd love to be hit with some Zillow examples. I'm definitely spending lots of time doing my own research, but I just know there are so many parts of the country I'm not even aware of. Thanks! [link] [comments]  |
| Becoming an agent - Relocating Posted: 23 Jan 2020 12:57 PM PST Hey all. I've been watching a series of pretty light-hearted interviews with agents from different regions, such as this one with Elias Everett. I'm wondering, how common is it to have to relocate after becoming an agent. Should you try to avoid it and stay in an area that you know better? [link] [comments]  |
| San Diego, What risks are involved with letting my friend, who’s a new realtor, be my agent. Posted: 23 Jan 2020 08:02 PM PST I have known my friend and his wife since 2014. When I first met them the husband was brand new to the industry with zero experience. As my friend I got to cheer him and his wife on in starting this new chapter of their lives. I was always really happy for him when he'd make a big sale. A couple years ago his wife joined him full time as an agent too. She's had me on her list of prospective clients for a couple of years and has been checking up with me seeing if I was in the market to buy and offering me help finding a place. I've always wanted to give them my business when I was finally looking for a place. Well now I'm married and my wife and I are starting to look for our first house. She brought up a good point which I hadn't thought of. What are the risks involved with going with a "green" agent? It is 6 years later too so they are way more established agents and I know they've sold at least a few places. But we're both still nervous about mixing friendship and business. [link] [comments]  |
| How to Determine Future Value of Land? Posted: 23 Jan 2020 07:55 PM PST Backstory: I currently have a property line dispute with a neighbor that we are trying to settle out of court. It's a complicated situation, but essentially the county shows them owning about 6 acres of my 80 acre property. If we would go to court over the matter, we almost certainly would have the legal right to the property, but we don't want to go down that road. The neighbor is only interested in keeping about half of that land, a strip about 100 ft. wide going back to their property, that they want to use to build a second access road to their property for a future development. They have offered to pay all expenses for resurveying, building a new fence line, any cost to the road being built. As well, they are open to paying a cash amount for the land. The property is currently not annexed in to the city, so the recorded value of the land is not very high. However, the neighbor is only 200 yards from the city line, and once they annex in, so can we, and the value would sky rocket. I feel like that should be taken in to account, especially since we are not really interested in selling the land, we just don't want to go through a legal battle. Question: How would I go about determining the value of the land if it were to be annexed in to the city? I have talked to a reputable property lawyer that basically said name the price, didn't give much advice on figuring it out. He was quite taken with how valuable the property is, even though in the current state, it's not. I want to come up with a reasonable price that isn't screwing either party over. Any advice would be much appreciated, thanks for taking the time to read. [link] [comments]  |
| After a loan application, should a LO provide a Loan Estimate or Worksheet? Posted: 23 Jan 2020 07:17 PM PST No specific property in mind, planning to shop around for the next 6 months. I've provided details and documents to one lender - they gave me a Loan Worksheet with everything detailed out. Should they also provide a Loan Estimate sheet or does that come once I find a specific property? What can I take to another lender as a comp? Is a Loan Worksheet what every LO should provide as a minimum? [link] [comments]  |
| Posted: 23 Jan 2020 03:21 PM PST I would like to get other people's perspectives on my parent's dilemma. They are selling their 1bdrm coop unit in NYC area and listed this unit slightly above the recommended sale price advised by their real estate agent. Unit has been showing for about two weeks and they have received two offers. The first offer buyer is pre-approved by the bank for the agreed amount (this amount is within the range originally recommended by their real estate professional), single, no pets, solid income which increases chance with the board approval and overall appears to have a higher chance of the deal going through. The second buyer submitted a 5%(20K) higher all-cash offer but has a terrible credit score, which may have been affected by certain life circumstances but also has solid income. I am not familiar with their coop board nor do they participate so they don't know how coop board will look at this aspect and I have read in other forums that coop boards look negatively at all cash offers unless it is being sold by a sponsor. Another thing to consider is appraisal value from the bank, the unit was listed on the higher spectrum of pricing for similar units in the area due to ready to move in condition and higher-end renovations, obviously the lower than agreed price appraisal wouldn't affect the all cash deal that much. They are not desperate for money but wouldn't want to deal w selling this unit for a prolong amount of time and don't want to deal with renting it out in case any of the deal falls through. Are there any other aspects that may aid the decision-making process of choosing which offer to accept? Thanks. [link] [comments]  |
| Water Accumulating in yard, but away from House - Should that be on the PropertyDisclosure? Posted: 23 Jan 2020 06:44 PM PST We purchased a home a few weeks ago that's situated on a flat 2+ acres. We were never at the property during or immediately after any moderate rains storms. Since moving in a few weeks ago we've noticed that certain parts of the property collect a large amount of standing water during any moderate rains. After a rain storm there is standing water along approx. 300' of the side property line and extending about 10-20 feet inside. There is also a low area that channels straight across the back yard (~150' wide by 3' across) and collects rain water. The sellers indicated a "No" on the property disclosure regarding the following statements: "Do you know of any previous or current flooding, drainage, settling or grading or erosion problems affecting the property?" We had a driveway and drainage contractor out today to add gravel to our drive and he stated that our water accumulation looked bad enough to need addressing. The prior owners also stopped by to pick up mail and said that the wet yard was one of their reasons for selling. This set off alarm bells in my mind. Am I correct in my interpretation of the disclosure form and should this have been disclosed by the sellers who obviously knew of this defect? [link] [comments]  |
| Lower rate without PMI, too good to be truth? Posted: 23 Jan 2020 05:52 PM PST Hi all, I have 2 loan estimates: 1) From big bank (one of the big four) 3.5%, 30 years fixed, 0.4% points, $50 PMI 2) From smaller but well established bank 3.5%, 30 years fixed, 0% points, $0 PMI No brainer, right? What do you guys think the catch is? I am just paranoid? Both options with 13% down, and they both will service the loan (they won't sell it) [link] [comments]  |
| Posted: 23 Jan 2020 05:44 PM PST I live in a house owned by my mother. The house is paid for with no mortgage and is in Northern New York. Mom lives in Oregon. The house is appraised for $225,000. There is some electric work and a leak in the garage and an inground pool that needs some lining repair. Mom's health isn't great and I need to move to Oregon and soon. So, we want to sell it at a much lower price. My question is that if you sell it as a fixer upper for say $75,000 do you pay taxes on the market value of the home or what you sold it for. Also, I've never sold a house before so wouldn't it be better for mom to sign house over to me so I can sell it or would there be less tax if she sold it? Thank you. [link] [comments]  |
| Posted: 23 Jan 2020 05:16 PM PST We are trying to buy my wife's childhood home from her parents who are about to move out of country. The house is approximately 55 years old, and needs some updates. But it's totally liveable. We have started the process with a mortgage company. Appraisal, home inspection which resulted in needing a structural inspection. Despite both inspectors stating to us that the foundation can wait it's not an immediate fix. But the mortgage company doesn't care, it has to be fixed. The only reason we are going about it this way, is her parents need a little bit of money for their move. But now we are looking at possibly $15000 to repair the foundation that we weren't prepared for... Is there a way to possibly put our names on the deed and then refinance and take their names off? —Edit for more info— We live in Texas, not sure if that matters. Her parents still owe approximately $65000 on the house. The plan was to pay off their note, they take what they need from the equity and then they would gift us the rest for remodeling and what not. [link] [comments]  |
| Posted: 23 Jan 2020 05:05 PM PST This is a general question. I recently did a refinance. Previously PMI was being deducted from an escrow account. I noticed when the payoff statement came from the previous lender, PMI was deducted from what was left in the escrow account the day after the mortgage was paid off. Does this generally happen? I'm having a hard time finding answers and I don't necessarily trust this particular lender. [link] [comments]  |
| Property Tax issues in Florida Posted: 23 Jan 2020 01:07 PM PST My husband and I closed on a house last February, receiving an HFA preferred plus 4% down payment assistance grant. At closing we were presented with projected mortgage payment amounts for the next several years and they were all roughly $1500/month. Last week we got a notice from the bank that our mortgage payments starting on march 1st will be roughly $1950/month. This is a shocking, and possibly impossible amount for us. We immediately called our realtor, who told us that we should have filed a homestead exemption right after closing on the house (thanks for letting us know now). She said we should have received a reminder in the mail from our lender to do this, but we never did. We are new to Florida, so we had never even heard of such a thing. Our realtor claims she told us about this, but neither one of us recall her saying anything. Upon further investigation, a homestead exemption would only decrease this amount by roughly $50/month. Something else must be off. After digging through paperwork and trying to figure out what's happening, we've come to the conclusion that the lender's projected property taxes were dramatically lower than what they actually should have been, so we were making payments that weren't enough all along. That amount that we owe in back taxes from last year is being applied to our mortgage payment and adds an extra $250/month. We plan on filing a homestead exemption and attempting to get it retroactively applied to last year's tax amount, but it would still be hundreds of dollars off, even with the homestead exemption. I guess my question is this: who is legally accountable for misleading us about what our monthly payment would be, and for calculating the taxes at such a low rate for our initial mortgage payment that we are now locked into a mortgage that just went up by 30%? It seems like this should be illegal, but I don't know where to begin or who to contact for help in resolving the issue. Any advice would be very much appreciated! [link] [comments]  |
| Calculating Value of Home After Adding Additional Bedroom? Posted: 23 Jan 2020 12:39 PM PST Can anyone help me understand the process of appraising a home after adding a 4th bedroom? I'm in the process of getting my home ready for sale and trying to get top dollar. I have an unfinished bedroom that I was thinking of completing. My RE agent is advising against finishing it. He did a preliminary appraisal using 3 comps ranging from 1480 sq. ft. to 2072 sq. ft.. My home is currently 1950 sq. ft. with the additional bedroom. Finishing the bedroom would add an additional 350 sq. ft. for a total of 2300 sq. ft. for the home. The value of the dwelling in the appraisal is listed as $90 per sq. ft.. The realtor said that it was a misconception that adding living space would add comparable square footage value to the home. In other words, he said that if I add a 350 sq. ft. bedroom, the value of the selling price would not go up by 350 sq. ft. x $90/sq.ft. ($31,500). He said that it would likely only go up by $10/sq.ft by adding the additional bedroom ($3500). I'm trying to understand the logic. Would the appraiser need to look at totally new homes to compare to my home in the same square footage range or could they use existing comps? I've seen appraisals for similar (2300 sq ft with 4 bedroom) size homes in my neighborhood and they all over $100/sq. ft.. The reason I ask is because it's going to cost $4000 to complete that 4th bedroom. It already has HVAC, electricity and 75% drywall and insulation. I had a contractor I trust that's doing other work on the house for me who saw it and told me that I'd be foolish not to finish that room because it would add substantial value to the sale. But he's not a RE Agent and I want to get some expert opinions here so I can be better informed before going back and talking to my RE Agent. Thank you very much for any help on this! [link] [comments]  |
| buyer's contract includes donation to charity by seller - is this legal? Posted: 23 Jan 2020 03:56 PM PST My mother is selling low income rental property (apartment duplexes). A buyer (with his atty) is representing a charity that rents low income housing to the indigent elderly. The buyer has approached my mom (and her atty) with a contract proposal to buy the property for above the asking price. The catch is that the difference above the asking price would be immediately re-donated by my mother right back into the same charity. The buyer is stating that my mother will reduce her (capital gains?) tax burden by accepting more than the asking price but then donating her extra proceeds right back into the charity. My mother is 68+ years old, so she doesnt have to pay capital gains taxes anyway. None of this makes sense to me, and she and I will meet with her attorney tomorrow to review it, but I want to pitch the question here .... is there something untoward about this? Is there some type of tax or debt evasion being proposed by the charity? Charity: not for profit social housing assistance, represented by buyer My mom: seller of rental units Mom's asking price: $175,000 Appraisal: $175,000 Cost to be financed by charity's bank: $200,000 Proceeds: $200,000 to my mom minus closing costs Immediate Donation from my mom back to the charity: $25,000 Final net proceed to my mom: $175,000 minus closing costs = ~$165,000 final check cut to her How is she saving a tax burden? Is this kind of sale ever done? [link] [comments]  |
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