House Hack Opportunity Need Help!

[Joe Threats]

My wife and I have come across a Triplex at a reasonable price of 215k Its livable right now but if we put a few bucks in to it I feel the value can appraise for more. Since we were in the plans of rehabbing a property this year we've been approved for a Hard Money Loan that could cover the cost of the home as well as the rehab. Our first plan was to use and FHA 203k loan but being that my wife was a house wife and we were living on one income pretty much the last 3 years my credit took a BIG hit. I have a house in Texas I'm currently leasing to a tenant which is pretty much most of my debt including 10k in credit card debt and my wife's vehicle.

I guess my question is what would be my best route in purchasing this home so we can house hack if I can't get a FHA loan right now due to my credit which should be boosted up in the next 30 to 45 days or so. The hard money lender would want to see the ARV which I would be kind of hard to pull comps on being that it's a triplex.

I know it can be a game changer for us if we are able to purchase it, or should I say WHEN we purchase it. I just need to know the best route in doing so. My wife score is good but just started working 2 months ago. 

Should I  find a buy and hold lender then refi once my credit gets better?  Thanks in advance for the advice!

[Bart H.]

Originally posted by @Joe Threats:

My wife and I have come across a Triplex at a reasonable price of 215k Its livable right now but if we put a few bucks in to it I feel the value can appraise for more. Since we were in the plans of rehabbing a property this year we've been approved for a Hard Money Loan that could cover the cost of the home as well as the rehab. Our first plan was to use and FHA 203k loan but being that my wife was a house wife and we were living on one income pretty much the last 3 years my credit took a BIG hit. I have a house in Texas I'm currently leasing to a tenant which is pretty much most of my debt including 10k in credit card debt and my wife's vehicle.

I guess my question is what would be my best route in purchasing this home so we can house hack if I can't get a FHA loan right now due to my credit which should be boosted up in the next 30 to 45 days or so. The hard money lender would want to see the ARV which I would be kind of hard to pull comps on being that it's a triplex.

I know it can be a game changer for us if we are able to purchase it, or should I say WHEN we purchase it. I just need to know the best route in doing so. My wife score is good but just started working 2 months ago. 

Should I  find a buy and hold lender then refi once my credit gets better?  Thanks in advance for the advice!

Honestly, I wouldnt start into the rental business without some reserves. IF your credit is too low to get a deal done with FHA. Then worry about the deal later on.

The first house hack we did was for a duplex.  Our intent was to not renew one tenant who was month to month, and paying well under market, move into that unit and then continue to rent to the other existing tenant.  Oh, and we would sell our condo that we were moving out of and was under contract.

In about a weeks worth of time.  We closed on our duplex, gave notice to one tenant we werent renewing.  Had the buyer of our condo bail less than 48 hours from closing.  Had the other tenant request that we break the lease because her husband had died and she wanted to move to another city, AND get got sued by an unethical real estate agent who wanted a commission on a house she never showed us and we had to hire an attorney.

Dont assume tenants pay, dont assume that you will always have rent covering your mortgage.  

If you are having problems keeping up with the bills now, owning rentals will not make that better.  In most cases it will be worse.