That rate is fair. You can buy down the rate with points, and hopefully your loan officer went over this option with you. You will be fine regarding credit score. Any checks by mortgage lenders should keep the score the same now that it has been pulled. (This is a common misconception and even less-than-honest loan officers will tell people NOT to shop because it will pull their credit down. If you have 740 credit scores just tell the other lenders. Any lender will have to assume some things, so don't write their quotes in stone.
Duplexes are considered residential income property, as opposed to a single family home. These properties are typically driven more by rental income. Since rents typically don't fluctuate all that much, the prices for income properties is typically more stable. To determine value/offer price, do a comparative analysis of other active pending, and sold 2-4 unit properties. Compare attributes such as the property condition, garage vs. carport, square footage, proximity, zip code, school district, age, etc. to come up with an estimate of the properties value. Another question is if the property is a legal duplex, or if it was a single family property divided without permits. That could create some big problems if the property was not a legal multi-unit property.
Another factor to consider is planned use. Are you considering living in one unit and renting the 2nd? From a pure investment, I like to use the 0.8% rule, that is, the collected rents should equal 0.8% of the purchase price each month, assuming 100% occupancy, to be considered a viable investment. There aren't many places in this county that will give that type of return.
I hope this helps. If I can answer any questions, please feel free to e-mail me at Dale@DaleWarfel.com.
Real Estate Consultant
Keller Williams Realty
Web: http://www.DaleWarfel.com... more
The sad truth is this: in the current market, “cash is king” followed by conventional loans. Because of the extreme shortage of inventory right now (especially at the bottom of the market) and resulting multiple offers on almost everything, sellers are being choosy about which offers they accept. Add in (1) problems with appraisals (HVCC), (2) FHA spot approvals expiring in a few days and (3) strict FHA guidelines about property condition – sellers want to avoid FHA loans and accept offers with conventional loans.
Duplexes, for the most part, are treated like a house (vs a condo). That said, non-owner occupied properties require a minimum DP of 25%. The required credit score will most likely be over 700 (under that, points will change your mind to move forward). Preferably you should have scores above 720. The rate depends on your score, but typically it can have as much as 3 discount points added in fees which in turn affect the rate (unless you prefer to pay the fees out of pocket. The seller can only pay up to 2% in closing costs.... more
In Oakland the west side of town is changing for the better, I think the areas around the Macarther Bart Station have some promise. As for price I don't think your going to like most of the places you see if they are priced in the 250k to 300k range. In that price point you can find a nice condo though. I would suggest taking some time to drive around Oakland on a Sunday and go to open houses to get a feel for the neighborhoods. If you would like further help I am always looking for new people to work with.... more
Call Alice Campbell (908-500-5958). She's will Wells Fargo and a whiz at this stuff! Another source is Don Chapman, GMI Home Loans: 908-264-8167 ext. 300. He knows a lot about home mortgage programs too!
Hope that helps.
Teri Malone, Keller Williams
It depends on the purchase price and the rents. The problem with high renter vs owner is that is will be difficult to get financing for the community. Lenders want to see a high owner occupancy ratio so resale for the unit and other units will make it difficult The other part to high renters is defrayed maintenance. Your potential rental rate will be lower in a high rental occupancy community.
You will need to get the property for a price which will give you cash flow on your investment, and below market value so you can earn equity should you sell in the future.
Be careful not to over leverage an investment property or you can end up negative.... more
You will likely find there are a multitude of reasons to purchase either a single family home or a condo but from our perspective a major consideration is the higher fees normally associated with condos compared to single family homes...especially homes without an active HOA.
Higher HOA fees tend to push buyers in another direction.... more
The median sales price for homes in Bedford - Stuyvesant, Brooklyn for Jun 09 to Aug 09 was $450,228 based on 132 sales. Compared to the same period one year ago, the median sales price decreased 13.4%, or $69,772, and the number of sales decreased 10.2%. Average price per square foot for Bedford - Stuyvesant was $192, a decrease of 12.7% compared to the same period last year.
There are currently 647 resale and new homes in Brooklyn on Trulia, including 8 open houses, as well as 72 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in Bedford - Stuyvesant was $513,993 for the week ending Sep 09, which represents an increase of 1.4%, or $7,309, compared to the prior week.... more
Houston, like many metropolitan areas, is quite large and it really depends what part of the city you will be renting in. If you are going to rent near Rice University, your rent will be much different than if you rent near Katy Freeway corridor.... more
I do have access to lists of homes that are in foreclosure/preforeclosure in that area. Keep in mind many are not on the market for sale, and 60% of homes that recieve a foreclosure notice manage to save their home.
Are you looking for a specific property, or do you feel that foreclosures repersent a better value? If you can give me some details about what you are specifically looking for, I'll be able to help you out and get you the information you need.
Contact me via email at BarbSmith321@comcast.net or cell phone: 609-980-7593.
Barbara Smith, ABR, GRI
Weichert Realtors... more
Basically LEGALLY there is no difference, BUT often banks and the FHA draw a difference because they are concerned with the management and the balance of the ownership. If one party owns say 10% or more of the units (which is the case in many local condos) then the lenders are wary of control by one party of the votes in the condo association.
The word condex implies 2 units or dual ownership, call it 50/50. So the borrower (and if a foreclosure, the bank which becomes the new owner) will not be outvoted or subjected to onerous expenses for future repairs and etc by a condo association that is controlled by one or two persons.
But outside of the implication of dual ownership, a condex may also have very simple "covenants and documents", which may run from a simple handshake agreement to split any bills that are relating to the building's exterior, (insurance. snow removal, future roofing, well, septic, etc.) to multi-page agreements that spell out acceptable uses of the yard, setbacks, fences, garbage and drying yards; they may even specify if you can have a pool (and what kind of pool) in your own back yard.
In a condex agreement, usually the rules can be changed if both parties agree (depending on the wording of the agreement), but not if only one wants to make the changes--so always read the condo docs.
A condex building can be a part of a larger condominium association, Winding Brook in Stratham has free standing single houses, duplex/condexs, triples and quads. They run right up to $450K meaning they are nice homes and they have all the rules and regulations that you would imagine, and maybe a few more. In their case, a condex is not exactly a condex, rather it's 2 units.
Hope this helps,
Betty LaBranche Realty
Simplicity and convenience, the desire of today’s home buyers, for the ultimate lifestyle! To fit that perspective, most shoppers end up with a condo or townhome. But, which is better, and what is the difference?
The answer is simple: They are same in real estate terms. Yet, to a buyer the differences would entail varieties of all sorts. Condos typically come in many different genres, urban, luxury, conversion, as well as, townhomes. They all would be, of course, dependant upon personal preference and lifestyle, whether it is, you are a city slicker, a first time buyer, growing a family, or an investment guru. So after determining your basic genre, would be the next step, do you want a townhome-condo?
Townhomes usually have an attached garage and, mostly, but not always, a small patio, or fenced backyard area to be maintained by the owner. A townhome is a condo with the luxury of a single family home, yet the freedom from land and home maintenance. Townhomes typically have multiple stories and can be very large. Townhomes also are built one next to the other; so typically, you would not have anyone above or below you and the sound from the attached side is little to none. In today’s growing world, townhomes have become popular among builders because of the effective use of the land, and a green way to grow a community using fewer materials to provide equal space for living. So whether your next step would want to go green, or low maintenance, yet the single family home style, a townhome would probably be a good choice.
Now to the specifics, when looking to purchase a condo you want to make sure you do your due diligence for any community. A lot of condos now are not “new construction” and built to current condo code, rather they are simply conversion projects from existing apartments that builders make a killing on because they mostly have cosmetic upgrades, and then are sold for a huge profit. The problem with conversions is usually insulation and noise issues from unit to unit. Most people don’t realize this is an issue until they have closed, moved in and their neighbors have American Idol cranked and they can hear it as if there is no wall! Townhomes are build typically with 2” X 6” fully insulated on the wall of each home (giving you 12” between homes), and there is usually a ¼” – ½” air gap between them as well which kills a lot of the lower frequency noise. This style of construction drastically cuts back on how much noise you can hear coming from neighbors; in fact most of my sellers I work with say they hardly ever hear their neighbors. Both styles have advantages, but overall I have found people who are looking for a simplistic quality of life in their home buying decision will generally lean towards a townhome over a condo.... more
Buying any home takes research. This unit is about lifestyle and location. What are the HOD's and what do they cover? Is the construction "green"? Does the location and amenities make up for the unusal floor plan? How much of the building/other units are sold already and is it FHA approved? The ideal bathroom number is 1.50 so that guests can use a powder room and you have a personal bathroom. Do you have CC and R's that cover what happens in Bylaws and maintenance of your structure? Floor plans do make a difference in selling so you need to determine the answers to the above questions to see if you are making a good investment.
Good luck.... more
Atlanta is a large area and there are many areas that are better than others. The main thought is that you make your money going in, not out of the deal. The condo/townhouse market is "hot" for a buyer outside the perimeter (285). I am telling you this as a buyer, not a seller. There are many short sales and foreclosures of condos and townhoused and a high demand for rental space in the prime school districts in the MSA of Atlanta. Breaking even is a function of buying price vs rental price in an area. You need to read a few books, such as Gary Kellers "the Millionaire Real Estate Investor" or any of Robert Kiyosaki's books on real estate investing. Then call me!!! I will help you grow your net worth through investments in real estate.
Your MONOPOLY Coach... more
If there is a area to buy in the United States it would be in Northern Virginia or Washington DC area due to all the federal jobs in the Nations Capital. This area has been deemed as recession proof in magazines but i don't really know how real time this is because there are alot of foreclosures in these areas for the picking.I am right now helping foreigners to buy these properties and we have had GREAT success. Ares of interest has been foreclosures close to the Universities(Rentals for students), Metro Rail(communting for military on temp. assignment) and this is just a few. Detroit has no work and everybody from the automotive industry are moving south. See i have 2 ful time jobs (REALTOR) AND Management for a Automotive supplier for the last 32 yrs so i do know what is going on in Detroit. I live in the Shenandoah Valley which is approx. 60-80 miles from Washington DC and Norhtern Virginia. Call me 1-540-459-2752 or my cell 1-540-335-6659 or email me firstname.lastname@example.org... more
I am going to respond this in 2 separate answers. The first is blog I wrote on the difference between town homes and condos.:
Condo vs townhouse
Condo vs townhouse is an architectural term Condo is like an apartment building. You can have attached neighbors above, below, and your sides. Town homes are like row houses. You only have attached neighbors only on the sides.
Condo vs PUD (planned unit development) is an ownership term. In a condo you own 100% from the unpainted walls of your unit in. You own in common the walls of the building, the land, and any other improvements like a pool, laundry room, parking areas, etc. If there are 100 units in the building then you own 1/100 of the entire common area of the complex.
A PUD is a development in which you own your home and the land that it is on. You own in common with the other owners any common space, such as the roads, common landscaping, pools, etc, that may be part of the development. A PUD can be a single family home or a townhome.... more
No one can predict the future, but my bet is that all homes will continue a downturn until the federal government figures out what they are going to do with all the toxic loans that banks have on their books.
Wright Realty Partners
C.I., the resale value of a property varies greatly depending on many factors such as the condition of, in this case the condo/duplex, condo fees, sq. footage amenities etc... and of course market conditions
I can send you a report for the past 5 years on properties in Milton so you can see the market trend that has occured in this town. If you'd like me to send it contact me directly with more specific information on the condo, duplex (i.e. sq. footage. number of bedrooms & bath etc..)
You might want to check on the condo conversion thing with a mortgage person as I believe that a buyer would not be able to get financing for a condo in a 2 unit building. There are currently 94 Multifamily homes in Bloomfield for sale 20 are under contract and in the last year there have 56 have sold. What sort of rents are you getting in the units or are they owner occupied?... more