All Forum Posts by: Account Closed

There is not a set period of time you must owner occupy the conventional loan. With your strategy, you should be able to live in the home for a year move out and find another owner occupant home if that's what you are looking to do. 

Chattanooga is a great place to be! I work with a team in the area The Edrington Team (look us up on Zillow), we would be happy to assist you in finding a property. Let's connect sometime

I would put in the maximum amount of time researching, but at the same time, a deal is a deal. If you found something you need to be ready to jump in this market. I wouldn't advise getting into the business with someone else who is brand new, you really want a partner who can teach you the ropes before you start doing backflips off the top rope. Research never hurt anyone, but hesitation sure has!

Door knocking works wonders, find a house you want to knock the door and see if for the right price they would consider selling. Do not tell them what you would offer obviously, but get as much information as possible to help them, and even offer to help sync them up with a trusted agent who can find them their dream home.

If the home owner is not of sound mind, they will not legally allow her to sell the home unless someone in her family has power of attorney.  I see cases like this every day, don't be afraid to grab the bull by the horns. You see an elderly lady with a neglected home who might not be able to move while the next person sees an older lady who will be able to finish her life in a nursing home.  This deal could be a great thing for this lady, or it could be not even a possibility. You miss every shot you don't take, just do it.

Congratulations on your first property, and nice move! It looks like the home definitely cashflows the way you need it to and it looks like it should be a good investment. I'm sure you're super excited about making this leap best of luck with the inspection and appraisal.

Take tax appraisals with a grain of salt, they do not reflect the current market value and it sounds like that neighborhood can support the purchase price. Unfortunately the first 5 years you are paying a good chunk of interest on the home. My suggestion would be to find out the mortgage amount so that you can try to guess the type of loan that they used for this property. Take the purchase price and compare it to the mortgage history to see how much was financed. I would then make a guess based on that number that they went conventional, fha, va, etc. You can throw all of that info in an ARM calculator online and try to get an estimate of the money owed based on that calculator. If you are looking at it as a sole investment property then you should def. run it through and make sure that all the numbers make sense. I would start with...at what price would this make a good rental but not offend the sellers?

Good luck!

Good job on putting that all together that is really great! The only problem with the situation is you don't have any leverage at this point. I would seek to get some sort of leverage before negotiating your commission, and once everyone is all smiles and getting to work on the project you might have the best luck of getting that commission.

With such a discount in price, it makes me wonder what kind of discounts they give the current tenants. A big property management company should have the leases, otherwise, how do they still stay protected? I would lower your offer and write in the purchase and sales agreement under the special stipulations to interview (3) of the current tenants to see if you can get some further information. I suppose you could just go knock their doors and find out that way. I think that is very strange that there would not be leases on 8 units.

Thank you for the insights! I would like to mention that in my area I can get a conventional loan for an owner occupant at 5% down, and have to be moved in within 60 days of close. They do not specify the amount of time you must live in the property with conventional. I do understand that this would put me in negative cashflow at first. If I'm negative $200 right now that's not the worst thing considering I'm -900 with my current mortgage since I'm not renting it out in any way. Once I move out of the property in six months or so I will be clearing around 600 cashflow which will help me get started. I know it's a little more unconventional to start out negative but I would very much like to get started investing this year and this unit beats everything currently on the MLS and anything I've seen in the last year. I would prefer to buy off of the MLS so I could collect my commission and start out with equity. I am willing to pass up this deal but would hate to miss out on a good property. One of my concerns on that property is that when it does sit vacant I would be shelling out a couple hundred bucks each month which would not be good. I could invest SFR and just house hack that way so I'm only managing one house at a time,would that be a better idea?