All Forum Posts by: Brad Sneckner

I'm always down for a meetup at a brewery! 

Sorry, somehow didn't see the response to Dave before posting. 

Hey @Brian Boodoosingh, the only way you're going to be able to accomplish that is with an FHA loan and buying it as a primary residence. Is it an option to move into it? And is your current residence already on an FHA loan?

@Brock Jenkins You bet! And even better, Back Porch Homes is based in Riverside! So am I in fact, so if you ever need anything, let me know. I can introduce you to some folks, or we can swap stories and ideas over a beer downtown. 

Cheers!

1 year is the requirement. So you should be good with that plan!

@Markus Atkins Ok, then waiting the 1 year is pretty much a must. The one potential option (if you have 25% equity rather than 15%), is you could refinance your current duplex as an investment property, and purchase the 4-plex with the FHA owner-occupied. The caveat is that you would need to do these two transactions simultaneously and close them at the same time because you can't refi your primary residence as an investment if you live there.

You'd need a lender who's really on the ball. 

Hey @Markus Atkins, 

Yes, assuming you would be completing this refinance as an owner-occupied property, then you are signing on the deed of trust saying you will occupy the property for at least 12 months. There are occasions where, in the future (but less than 12 months) if something changes your circumstances (such as getting a new job that you can't commute to) then you can probably get away with moving, because your "intent" at the time of the refinance was authentic. 

But this is the most common type of mortgage fraud (when done intentionally), so mortgage companies and the FBI watch for this pretty closely. 

Would you want to purchase the 4-plex in your same town/city? 

I agree with @Peter Mckernan. There are limited options for multi-family in good areas, and those that own them typically want to keep them for that exact reason. The SFR option while renting out rooms is cool if you're ok living with roommates. I personally really like the ADU option. And a great way to accomplish that with minimal extra cash is to look into tiny homes that can be put in your backyard once you own the home. Check out Back Porch Homes. They build, finance, and deliver these tiny homes that could fit on even a relatively small lot. Stephen McKee is part of the BP community so check him out and look into what they are doing. It's super cool!

@Tanya Rhodes I don't know a G.C. so I wish you the best of luck. However, if you decide to manage it yourself, I do know a really great roofer and window/doors guy in Eugene. If you need any roof work done, reach out to Greg at Reneissance Roofing. Also Lance at Riverside Window and Door if you need some of that stuff.

Good Luck!

@Kyle Henry I agree with Kevin. The condition of the property is key. Ideally, the best "low out-of-pocket" options are going to be standard FHA/Conventional loans. One other thing to explore is if the property is ALMOST liveable, and just needs a couple of small fixes, you can utilize a repair escrow.

Example:

House needs toilets installed, windows repaired, and flooring in the living room (total ~$10k). You would do the standard loan (3-5% down) plus an extra $15k (1.5x repair costs) into a repair escrow with the lender, who would then disperse the funds to the contractor once the repairs are completed. Typically those repairs are required to be done within 60 days of closing, and there's a limit to the extent of the repairs.