All Forum Posts by: Aaron Shuman

@Jeffrey Holst - Yes, I'm certainly hoping that I made enough income in 2017 for the loan amount I would need. I've had lenders tell me that they typically want to see 2 years of self-employment history, but will sometimes accept 1. Throw the recent relocation in the mix and it's looking pretty grim. Haven't applied yet, though, so it's possible.

@Rosely Tirado - Yep, we would most likely go FHA, or conventional with 5% down if we could get it. My girlfriend and I are first-time home buyers.

@Kyle Muth - I'd be interested to hear more about this. Using an LLC would, however, disqualify us from FHA? Sidenote - my girlfriend is from Westchester :)

Hi All,

I've recently moved to Atlanta and I'm looking to purchase and 'house-hack' a multifamily property. I have money for a down payment, but a hurdle I am facing is securing a conventional loan. As of 2017, I've started filing my taxes as self employed. That, combined with the recent relocation, is making it difficult to get approved. 

Does anyone have any suggestions or ideas for finding creative financing? I'd appreciate any input. I'd be looking to move out and sell the property within a few years, so adjustable rates or short terms would be options.

Thanks!

Hi Azeez,

What you're saying makes total sense. I can tell just from preliminary searches that the supply is low and demand is high. I'm PMing you.

That's a good point, Stan. I think price will be the biggest determining factor for the area. We actually love Decatur, we live here now. I don't think we have the budget for it, though. We like the Northeast part of town, as well as the Smyrna, Vinings, Marietta area. We're pretty flexible since we don't have a commute to worry about.

Hi Everyone!

I'm looking for recommendations for a qualified Agent/Broker in the Atlanta area who would be able to help me find a small multifamily property. I'm looking to purchase in the next year, and would like to use an FHA loan (I plan to live in one of the units). I've done some searching on the popular websites, and haven't found much, so I'd like the help of an agent.

Any recommendations or general advice welcome and appreciated!

Thanks,

Aaron

Wow, I can't believe I never responded to this - sorry @Joshua Woolls!

No, I wouldn't dream of buying and renovating for only 30k. That's the total amount we would be able to put toward a down payment, although we would like to stay even below that. We are still trying to figure out whether it would be best/necessary for us to go through an FHA loan. After doing some research and talking with lenders, I'm starting to realize that it might be difficult to secure a loan shortly after moving. Because we will have to find new jobs, our work history might be viewed as unstable. Any thoughts or experience on that matter?

Also, thanks for the tip on MoveInMichigan.com. Great tool!

@Upen Patel Hi Upen - I have some specific questions regarding FHA loans. I hope you won't mind me PMing you.

Wow, incredible coincidence - I'm in the same boat. I'll be in Detroit from 08/27-09/01 and would love to meet with knowledgeable realtors. I'm looking to most likely invest in a multi-family property and would love some insight.

My ideal timeline for the first flip would be 4-6 months, while my girlfriend thinks it would be smarter to stay in the first house for about a year. I guess my thinking is to do it as quickly as possible without rushing and risking making costly mistakes. We also need to consider where we are going to live in the interim between moving and finding our first house, as well as between our first and second house, and what that is going to cost.

In terms of using HUD/FHA financing, we definitely are not trying to abuse the system, and plan to be completely transparent about our intentions. I was also thinking if we are planning to stay in the property for a year or two, it might be better to look for a triplex/fourplex. What are your thoughts @Joshua Woolls? I've been looking on the HUDhomestore, but I can't find a way to filter for just multi-family properties.

In terms of budget, I'd say we max out around $30k. We are going to need to factor in whether we can get a 203k loan as well, because if we can't, I doubt we will have enough money to rehab the property. We also are going to need to consider things like the cost of living before buying the home and what kind of jobs we will need to get to qualify for an FHA loan. I'm curious, @Richard Dunlop, what was your process when you moved to the Detroit area? Did you have something lined up before you got there, or did it take some time after moving before making your first deal? Did you have to get a job when you moved out there or did you devote all of your time to real estate?

Sincere thanks, you guys, for your input. 

@Joe Villeneuve

Thanks so much - I did some sleuthing and found your website. I've got some reading to do! I'm currently looking at areas like Oak Park, Soutfield, Warren, and Dearborn. The challenge is going to be finding a place that we can make the most use of what little money we have (we're still in our mid-twenties). We are taking a trip to Detroit at the end of this month, and, if you have the time, I'd love the opportunity to chat while we are there. I'll PM you. 

@Richard Dunlop

It's good to see another SoCal transplant! Real estate investment is something I really want to do, but it is just too crazy down here. That is what brought my focus to Metro Detroit. I'd love the chance to speak with you as well, especially in regards to your moving across the country to pursue the great opportunities over there. 

One question I have for the both of you: Is it possible to use an FHA loan to finance a flip? I keep reading different forums/articles with slightly different answers. We plan to live in the house during the renovation, so we will be inhabitants, but the message I keep getting is you need cash. @Richard Dunlop, how did you finance your first project once you moved out there?