All Forum Posts by: Andy Eakes

@Zach Gulbransen I would ask your lender to confirm but usually it's around 20-25% equity.

@Zach Gulbransen From my understanding, you can continue to use it as many times as you like, so long as you refi the initial FHA loan to a conventional loan. The only downside to FHA is that you pay mortgage insurance until you get to 20-25% equity, depending on your lender. This is why more people choose not to utilize, but for new investors looking to house hack, it's a homerun imo.

What's up FL BP!? My name's Andy. I'm an agent in San Diego, CA, and I have a buyer lead who is also family for anyone who wants it. They are moving to the Tampa area at the end of the month. Initially, their plan is to rent with the intention of buying a SFR, 3/2 with yard space in a nicer neighborhood. I couldn't think of any agents in Tampa off the top of my head, so I figured I'd start here! They are VA loan eligible. It would be great to pair them up with someone who specializes in that!

Feel free to reach out so we can discuss further. Thanks!

@James Devoe A property manager is going to get a percentage of rent each month. Typically 8-10% of gross rent. A property manager is going to be great for helping you determine rentability and how much you can get. Unless they have prior rehab experience though, they may not be able to grasp how much rehab will cost and what the ARV will be once rehab is completed.

If you've spent enough time on here, you will hear people talking about the "Core Four". Agent, Contractor, Property Manager and Lender. It seems like a lot but each member of the group brings their special knowledge and skills to make sure you're on track.  

Are you hearing that from one particular lender or multiple ones? From my own experience, I have been able to get 20% down loans, but the terms are far more favorable with 25%. It's a huge difference too. I think with how crazy real estate has been these last few years lenders have decided to tighten it up a bit. I honestly would just talk with a couple lenders and get their take. At the end of the day, they're bidding to win your business, they will lay it all out for you.  

Yes. I would confirm with a lender to be 100% sure, but people use FHA to build their portfolios year after year. Once you refi to that conventional loan, you can start over. The major key with FHA is that you live there in at least one unit for a year minimum.

@Zach Gulbransen FHA loans are used for residential properties up to four units. Anything more is considered commercial which typically is a different loan process that requires at least 20% down. Either way, you can always set up a partnership with an LLC to legally say who gets what. Many residential investors will purchase investment properties in their names and then transfer it into their LLC once the property closes. Commercial deals usually require an LLC.

You're on the right track.  

@Atul Kaushal Unfortunately if you want it done right, then you may have to pay a bit of money. When it comes to water damage and especially mold, you don't want to take any chances due to health implications and the threat of spread/infestation. And if it just sits for another 30 days, it's going to be brutal down there. I would just start with seeing if you can turn the power on and if you rehabber is correct. You also may want to get quotes from local companies that specialize in this stuff. The bigger companies tend to charge more than the smaller guys. At least that's the experience I've had in San Diego, CA.

There's going to be pros and cons for any strategy you decide on. It will depend on what you feel most comfortable with. One thing to remember with rent by the room is creating specific and direct rules when it comes to the common areas, because this is where the majority of conflict will arise. I tell everyone that it's best if the landlord provides the common area furniture. That way there isn't one tenant with something over another. Everything is equal, and the hope is that they take care of it more because it is not theirs. At the end of the day, I find it better to be in a position where I can hold someone accountable for breaking my stuff than being a middle man between two tenants fighting over what one tenant did to another's stuff in the common area.

This strategy is lucrative though, and I have seen many investors choose that method where I am based out of in San Diego. You typically make more when you go this route. Hope that helps!

It's been a mess. I think only 10% or so of the rent relief money has been used so far. I think you hit it on the head though when you said that tenants simply do not want to cooperate because it benefits the landlord more, and landlords haven't been able to evict so there is no reason to worry about paying. The paperwork takes 15 minutes tops to fill out and the money is yours. I'm sure I do not need to explain the craziness here in CA, but friction between tenants and landlords continues!