All Forum Posts by: Angelo Revercomb

I recently came across an interesting situation. My wife and I noticed a home being built sometime around a year ago. The home is finished part from the ( cabinet door and drawer fronts, countertops, baseboard, final mechanical trades, driveway, sod, well, and septic.) Some work to be done from the looks we see anywhere from 50k-60k in additional costs. Due to a tragic incident, the original owner-builders were not able to complete the project and the home has been sitting vacant since. They are negotiable with their price we are thinking anywhere from 160-180k with an after-repair value of 270k. We have never dealt with this sort of situation and wanted to reach out and hear about others' experiences with this sort of situation, financing, and just general thoughts. Without doing a deep dive we see an opportunity to get a brand new home for a sweet deal and have some equity on top of that if it goes smoothly. Let me know what you guys think / suggest. 

Thanks.

@Benjamin Sulka

I tuned into your bio and found you are an aspiring investor. I myself am looking to get into real estate this coming year! Truly an exciting time for us. I wish you luck on your journey and do stay connected!

I was scrolling the internet and ran across some articles about how some people feel it is important to set up an LLC before beginning a real estate journey. I wanted to get some other thoughts on this!

1) Do you think an LLC is necessary?

2) How do you finance an investment property using a brand-new LLC? What are the banks looking for?

Let me know your thoughts! Thanks.

My wife and I were working through some sceneries and had some questions we were hoping to have answered.

We are looking to get into multi family investing early next year. We currently owner finance a home. We have accumulated a large some of equity in this home.

1) Could we pull money out of this property and use it as a down payment or use the home as collateral for a multi family unit? (Again it is owner financed)

2) If not would we have to refinance through a bank in order to do so? 

3) If we had to refinance how soon could we pull money out of the home? Could we cash out refinance?

Please feel free to leave your thoughts!

@Justin Brown

Thank you for the response! 

So, do you still have to live in one of the units to qualify for the conventional loan at 5% down? 

@Benjamin Sulka

Thank you for the reply! How about with a conventional loan? I understand that for multi family properties they are now offering 5% down. Do you have to live in the unit to get this deal?

@Andrew Postell

I appreciate your response! 

The home is owner financed by my wife’s grandparents. This means it is not associated with us whatsoever and is in their name. We are currently living in this home and renting out rooms to help cover the payment. Essentially it is like a “rent” but we have made personal arrangements for the home to transfer to us upon their death. Does that make more since?

1) I was stating in my previous response, can I count this extra income from my roommates to boost my buying power?

2) Can you talk to me a little bit about the new conventional loan rules in regard to the 5% down? Specifically a 2-4 unit. do you have to live in one of the units to get this deal? 

My wife and I are looking to sell a lot that we own. This will get us an extra 25-30k in which we will use as a down payment. We want to invest in multi family and are trying to figure out how to do so. Ideally we do not want to move out of the home we are “renting”.

Let me know what you think,

Thanks!

@Ryan Thomson

Ryan,

Thank you for reaching out! You explained that well.

I would like to know,

1) why would you prefer a conventional over a FHA loan?

2) Can you go into detail about these down payment assistant programs? 

My wife and I are thinking we may just stay in the current home we’re in now and purchase a duplex to rent out completely.

Currently, we live in an owner financed home and have rented out the bedrooms which covers that bill entirely. The home is in the name of my wife’s grandparents and has been put into a trust for us later down the road.

One problem I run into is my location and how much I make. We live in central Florida not a bad place at all it’s just that duplexes can be a little bit more expensive. I don’t make a crazy amount sitting somewhere around $62,000 from my w2 and an extra $10,000 from other sources. 

The house payment is $1,130 and we charge a total of $1,300. We profit a couple hundred dollars there. Do you know if this would count as more income therefore increase buying power?

Figured I’d ask! Thank you.

Hey!

I wanted to reach out and see if anyone had any experience getting a multifamily unit using an FHA loan.

Specifically,

1) How does the process work?

2) Do you find a property and pitch the “idea” to a bank?

3) How does the bank consider the extra rental income from the other unit? Do you put that info together and show the bank?

4) What are your general experiences with this?

Thank you!

Hey!

I wanted to reach out and see if anyone had any experience getting a multifamily unit using an FHA loan.

Specifically,

1) How does the process work?

2) Do you find a property and pitch the “idea” to a bank?

3) How does the bank consider the extra rental income from the other unit? Do you put that info together and show the bank?

4) What are your general experiences with this?

Thank you!