All Forum Posts by: Alyssa J.

Quote from @Rob D.:

I currently hold a number of properties in Rochester. There’s still plenty of room on properties even with the tax rate. I’m starting to trim back my portfolio a bit as I’m getting older and shifting strategies. I would avoid properties that need lots of work especially if you are far away. Try to find an Investor like me that’s aging out and work an off market deal wherever possible. Feel free to pm me. 

Hi rob, my husband and I are actively looking for our next property. Please reach out if/when you’re ready to sell.

Quote from @Dave Skow:

@Alyssa J.- if you want to be able to use  rental income to help offset the mortgage payment on present home - having a rental  agreement in place  is required ....the actual rent  date can  coincide with the closing on the new  property ...I hope this answers the  question

That is good to know- thank you!
Fortunately the mortgage payment is low, so and we would be ok with not using the rental income immediately to qualify for a new home- but if the timing is right it is definitely something to consider!

Quote from @Ryan Muska:

Umm. A lot to unfold here. Yes mortgage fraud is a problem. But you don't need to put down 15%. You only need to put down 5% for a conventional mortgage on a primary residence. Even if you own another property, for all they know it can be a secondary residence. They are just a bad mortgage broker it sounds or are totally unfamiliar with what a house hack is so they are expecting that you are trying to commit a crime. 

feel free to connect with me because this person just does not get it

If you're licensed in NY I would like to discuss further- Thank you!

Quote from @Martin Grizzanti:

Yes reach out to another mortgage broker..I know a few that can help..Reach out if you need any recs

I would definitely appreciate if you could share any recommendations! Thank you 

Quote from @Dave Skow:

@Alyssa J.- thanks - all accurate points ....if you can rent out the present home before closing and provide the lender with a copy of the rental agreement - will this allow the lender to offer a FHA loan for the dupelx purchase ....conventional loan max loan to value is 85% on owner occupied duplex

Hi Dave - Thanks for your feedback.
Do you know if renting out the current home before closing will be a requirement with conventional, or is this only for FHA? We will definitely continue to look around- but I appreciate your professional feedback!

Alyssa

My husband and I currently occupy a SFH that I purchased in 2019 using a conventional loan, and we are able to move out next fall (due to occupancy rules with my loans). I house hacked this home for two years by renting by the room, but currently do not have any renters here. I am in the beginning stages of planning to buy another property, and in my search spoke to a local mortgage broker since I wanted to get a general idea of how much we would qualify for so I can have a gauge on cash needed and know what i would be able to look for when we start planning to buy next year. When I spoke to the mortgage broker she said that the following:

(1) If I want to buy an owner occupant SFH I can do 5% down. If I want to do a owner occupant duplex/multi I need 15% down.

(2) Since I already own a home, the new home would need to either be (a) bigger (b) more rooms (c) an improvement over the current property OR I would need to rent out my current property/have it leased before I got the new home.

(3) My DTI and credit is great (and based on that I should be able to qualify for something decent in my area)

She explained that the reasoning behind (2) is to prevent mortgage fraud, since they want to ensure that I will actually occupy the home/move in. I have full intention to move in and live in the home I purchase for at least 1 year, or for the required occupancy period for whichever loan product I go with. 

I'm less worried about point (1) mentioned above, since my husband and I can either save the money or find the cash needed if I have to do 15% down. However, (2) has me concerned, since I'm not sure I would be able to find a larger home or duplex that meets that criteria. Additionally, renting my current home before purchasing the next seems extremely risky with the current realestate market in Rochester ( although things could change by next summer...we will see).

My question is- has anyone else encountered an issue like this when they started looking at lending options for a second house hack/duplex? If so, what strategy did you use to get a second home/duplex while keeping the first home for a rental?

If anyone has had a good experience with any local lenders, I would love to connect with you and the lender see what my options are.

a lot of older homes in Rochester have wet basements. 
as the other replies have said- maintaining proper grading, gutters outside as well as dehumidifiers in the basement & a sump pump are the most common solutions. 

Renters are not living in the basement- I would just disclose the basement is not dry, improve any grading/gutters if applicable, use/install a dehumidifier and leave it at that. 

My home in the 19th ward was waterproofed prior to my purchase in 2017 for ~13k. I cannot attest to how wet the basement  was prior- but it is bone dry now ( and there are 2 dehumidifiers we still use almost continuously) 

I don't think I would personally invest in waterproofing unless the issue was very bad and all other options are exhausted first. The ROI isn't there.

If you would like an agent to give you guidance on rent/repairs necessary as you prep your house for sale/rent let me know. My SO is an LL and agent at RE/MAX and specializes in rentals ( primarily in the city’s SE quadrant and suburbs) & can help you run the numbers. 

Originally posted by @Reno Che:

Originally posted by @Alyssa J.:

I house hack in the 19th ward near the hospital/ university. 

I suggest offering furnished rooms if you're able to. 

Also look into renting to travel nurses, I did it once and enjoyed the experience. 

Thank you so much! I have looked in the 19th ward, I don't know the area too well, what streets do you suggest over there. The houses seem very affordable. Also how much do you charge per room furnished or unfurnished and do you include utilities?

I have all inclusive pricing at $500 per month for my furnished rooms.my rooms are on the smaller side as well ( 10 x10), so this is good pricing for me.  I charge $50 extra per month for leases shorter than 1 year ( 2 people have done this so far I'm my 1 year of house hacking). I control the thermostat and got central AC added to help keep costs down since I include utilities. 

in the ward I suggest looking around the area where the university shuttle goes. Students living there usually do so because of the shuttle service. So stick to the area southern area of the 19th ward- around brooks, Genesee street, Genesee park blvd, and Scottsville road. There is an area in PLEX on the other side of Genesee street where students live as well, around Barton and on Plymouth ( the Riverview dorm is over there) 

I house hack in the 19th ward near the hospital/ university. 

I suggest offering furnished rooms if you're able to. 

Also look into renting to travel nurses, I did it once and enjoyed the experience.