Investor · CA · Member since 2020 · 126 posts · 32 votes
Hi my name is Jonathon I live in Turlock California, I am looking to invest in purchasing a home through an FHA program for a first time home buyer program. But I want to rent out the property in Boise Idaho due to the low prices for the houses. My wife has family out In Idaho that gave me the idea to invest out of state. I have many questions due to me being brand new to the process. Anyone's opinions or advise would be greatly appreciated on how and where to even begin. I have been approved by a lender for 300,000 but I am concerned with the risk due to me being in California?
Good morning! You will need to clarify details with your lenders but FHA and first time buyer loan products are typically owner-occupant loans, so may not be applicable in your plans.
You also mentioned contacting a Realtor in California- they should be able to help source out a Realtor in Boise to help with any purchase there. Or else you just have your wife’s family in Idaho recommend one.
Real Estate Agent · Boise, ID-Idaho · Member since 2014 · 61 posts · 21 votes
6y
Hi Johnny
Great to hear you are jumping in the investment game.
It sounds like you have already talked to a lender in California, you may want to talk to a lender in Boise just to get a second opinion as well as local knowledge.
As well you are in the right spot here on BP, with lots of great information.
I like the Bigger Pocket rental section with the spread sheet of costs to consider when being a landlord.
Investor · CA · Member since 2020 · 126 posts · 32 votes
6y
@Eddy Udry Thank You for the info I am trying to do some shopping around when it comes to picking the right lender, I have gone through some lenders in California just to see where I stand in the first process of getting approved before contacting a realtor in California. My next step would be to shop in Boise for lenders and make a decision from there. My wife’s family have gone through Boise Credit Union for approval of loans, but I want to be open for shopping around for the right loan and get straight through the process to start the search for homes!
Good morning! You will need to clarify details with your lenders but FHA and first time buyer loan products are typically owner-occupant loans, so may not be applicable in your plans.
You also mentioned contacting a Realtor in California- they should be able to help source out a Realtor in Boise to help with any purchase there. Or else you just have your wife’s family in Idaho recommend one.
Investor · Idaho Falls, ID · Member since 2016 · 912 posts · 629 votes
6y
@Jonathon Nila From what I understand in your comment, you want to use a first time home buyer program with low down payment on an investment property while still living out of state. That won't work. You would have to live in the property to get that program. Otherwise it just counts as an investment property. Maybe I misunderstood, but if you plan to move there and live in it to do a house hack or something then yes, that would be great. Second, Boise does not have low home prices. Compared to CA, yes, but compared to the rest of Idaho, no. It will be hard to find a turnkey property there that will cashflow. I do agree that you should shop around with different lenders for the best loan that you can get. Right now many have changed what they are offering and tightening up requirements some. I suggest you decide on what type of property you want, start looking, and analyze as many as you can, even if you have no plan to purchase, just get used to analyzing properties. Do several each and every day. Once you do enough you will recognize a good deal when you find one. Take your time and don't rush to get in on something that may not be a good deal. If you haven't done so yet, use the BP calculators. You'll like them so much that you will want to get a Pro membership just to keep using them. I did! Watch/listen to as many podcasts and webinars as you can and read some books to learn as much as you can. Best of luck to you!
Investor · Boise, ID · Member since 2011 · 1k+ posts · 736 votes
6y
Hi @Jonathon Nila - I have lots of info in this department. Congrats on taking action and having already talked to a lender! FHA loans are intended for owner occupants, and they have pretty stringent guidelines. Are you moving up here even for the short term? If not, we can connect you with local lenders that might have lower down payment guidelines for an investor loan.
Investor · CA · Member since 2020 · 126 posts · 32 votes
6y
@Don Spafford Great advice thank you, I will be switching to pro and will look into your site you have available sounds informational. I know Idaho is the place to invest for now for me and will do my homework for good buys!
Investor · CA · Member since 2020 · 126 posts · 32 votes
6y
@Jonna Weber Great advice! I eventually plan on moving to Idaho in The future but currently work In California. I would be be very interested In other options with the loan program if the HFA program will not work for an investment.
Investor · CA · Member since 2020 · 126 posts · 32 votes
6y
@Aimee Orozco That’s awesome I read your profile very interesting and exiting journey! I would be interested in my options as far as the loan process me living In California and being so far from from the Idaho area. I want to invest in property possibly rent out the property what do you think?
Investor · Rathdrum, ID · Member since 2017 · 11 posts · 10 votes
6y
@Jonny Boi So I live in North Idaho and currently have a rental in the Spokane area. When I did it I was thinking about using a loan that would require Owner Occupancy. But who's gonna know unless they go knock on the door right? As long as the bills are payed. Here's what I learned. It gets stickier when you cross state lines. From what I recall it turns into a federal crime. Here's the other thing. Yea you get a lower interest rate but presumably your putting a lower down payment which keeps your payment high. My advice is whatever you do try your best to put at least 20% down. I only had 15% and paying PMI sucks. The bank I'm with I have to request the PMI be removed. Well I've requested twice now. And even though I'm over 20% equity they still won't drop it. It's more of a pet peeve at this point. But it's still like 400 bucks a year. The other thing is my house is a little over an hour from my house. If there's a problem I can go deal with it. Being my first rental it was very convenient. It's not that it can't be done out if state. But it's gonna cost more in maintenance. Like if there's a leaky pipe you can fix it yourself for maybe a hundred bucks or you can pay the plumber to go out for 15 min and charge you 300 bucks. I ended up having to pay the plumber anyways because the problem was the pipe had already been broken and hobbled back together several times before I touched it. Not saying don't invest out if state but make sure you have some cash to weather any storm that may arise. Chances are something will come up. That's usually how it works. An entire year of cashflow can be wiped with something dumb. Buying my rental was the best decision I ever made though. Even with all the lessons I had to learn along the way. Just proceed with caution. Sometimes the best thing you can do is jump in. Only looking back do you realize how bad it could've gone. Wasn't it Brandon Turner that said real estate is forgiving? I know that to be true.
Investor · CA · Member since 2020 · 126 posts · 32 votes
6y
@Jeffrey Rittenour Great advice thank you I will look more into another type of loan other than the HFA loan due to not wanting to commit a crime buying property that I am physically not living in