Lessons Learned... First Deal.
Ok, so we closed on our rental property yesterday. Here are a few things I learned along the way.
1.)When crunching numbers I used the tax information based on an Owner Occupied home. I forgot to take the tax hit for Non/O/O into consideration.. which turned out to be about $700 per yer... fairly significant but not devastating.
2.)I will NEVER again use a dual agent on a transaction. Frankly, I may never do a standard realtor deal again. My (ex) agent, who is very well rooted in this community, was not helpful AT ALL... he did not even show up to closing, was very slow with getting paperwork done, and was a no show to 2 appointments.
3.)GET YOUR LOAN STRAIGHT THE FIRST TIME 
We started with an 80/10/10 loan on a 5/1 arm with great rates. Not a bad deal at all. We decided 6 days before closing to change our loan to a 90/10 interest only loan w/ no PMI. The decision could have killed the deal (which we were willing to accept) since it would push out closing, and caused a great deal of frustration to our agent. It ended up only pushing out closing 2 days and didn't take as long as the agent thought it would.
4.)Although we paid market value for the property we still got a good deal. The appraisal came back at $154,000 and the sales price was $148,000 ($151,000 after closing). After we finish the basement ($3,000) the appraised value will be around $165,000 (with a mortgage of ~$139,000). So, my thought on this is you CAN get a good deal at market value.
5.)My father used equity (re financed) from his own home to buy this property so basically it was a NO MONEY out of pocket transaction. In the future we will be working off of a Home Equity Line of Credit. When he re-fied he should have got a HELOC considering he only owes about 12% on his home.
I hope this helps someone out. Thanks for everyones help during this transaction.
This is just the beginning
Happy Holidays,
Aaron H
[addsig]
Congrats on your purchase and getting things done as needed.
This was a helpful follow up of your experience.
I would like to know who/how you were able to get the interest only 90% no pmi NOO loan... can you share w/me as I need to free up $ and follow your lead!
~Thanks and Happy Holidays All~! C~
yes i was following this situation and im glad to see the outcome is so positive
only 2 days the closing was pushed back huh? thats good to hear because you were very concerned about how long it would take
glad everything came to a good close
~Andrew
grneydgy, is the next one already in line? If not, get hopping!
Glad it worked out
[addsig]
your greatest treacher is for buying is buying for selling is selling. a couple more and you will be the teacher......good luck.......km
IO no pmi at 90 is not that hard to find these days....its not a conventional loan, its an ALT-A loan