All Forum Posts by: Bobby Ritter

Thanks a lot, Brian.  That is what I suspected but I was hoping that wouldn't be the answer.  I love how you copied the direct text from the handbook, good stuff.

I am looking to invest in a multifamily property with a family member that would be an owner-occupant.  This family member can not qualify for a loan without me co-signing the loan and I can not buy a multifamily and take advantage of the low % down payment as an owner occupant because I have a primary residence already.

My question is do FHA loans allow for this type of purchase on a multifamily where there is sort of an investor in the deal or does the owner occupant have to be able to qualify on their own to take advantage of the low down payment? If FHA does not allow an investor to get in a deal this way are there any exceptions if both parties looking to get the loan are immediate family members?

Thanks in advance!

Anastasiia Greca Good for you guys for wanting to buy your own place, that is great. As someone mentioned, house hacking is a great option. Also, if you can qualify for a multi-family the rental income would help with your mortgage payment, of course, but also the loan you spoke of to help you get down payment and closing cost cash. Consider whether you or your husband want to deal with being a landlord if you do go that route. Be careful not to stretch yourselves with the mortgage payment if you will also have to pay a credit card balance or another loan. A good piece of advice when you have a mortgage (and even when you don't) to pay especially is to have 6 months of living expenses covered incase you or your husband were to become unemployed. Good luck!

Matthew Catanzariti A good, quick read for you would be "A Million Bucks by 30" by Alan Corey which you will hear being talked about on one or more BP Podcasts. When the author told his friends and family around your age that he would have a million dollars by the time he was 30 they laughed at him and told him his goal was not reachable. That made him more driven than ever to prove them wrong. You are ahead of where he was when he was 23. I have been trying to per sway my spouse for months now and I think I am finally getting close to convincing her we need to start investing in rehabbing. I feel your pain. Go for it and good luck!

Scott W. I have not flipped a property but the first two local banks I spoke with have financing available. One has offered me 5.25% on a LOC with 1.5 points. I need to come up with 20% of the purchase price and they will fund rehab 100%. My partners and I have no direct flipping experience but we do have skills that would be valuable (CPA, electrician, painter, HVAC...). I have not formally applied or brought a deal to them just yet, but hoping there won't be any issues with the financing process when the time comes!

@Kevin Yoo Looks like that so far, will let you know if anything changes.  Maybe the rules change in different locations are some banks are different.  These types of homes are very common in the neighborhood I am in so maybe the banks see an opportunity to invest.

@Kevin Yoo Thank you for the info. I ended up contacting a few banks today and found one so far that will loan against the property with a low LTV as you mentioned (50%). I believe they are willing to loan even though I am not an owner-occupant. Will let you know.

I do have other cash, this will be my "extra cash". I would rather not use a HML unless I need to due to the high interest rates. It looks like I might be able to get this loan for around 4.38% for 15 years.

Using the 70% rule, if rehab costs are $25k this warrants further investigation.

From what I read, closing and holding costs end up around 10-15% of ARV so a $40k budget for these costs would be a good conservative budget.

I agree with Brandon. Why use a drop box? With the convenience of online banking these days why do things "old school" or risk the checks being stolen?