All Forum Posts by: Brittany Franken

Thanks for your feedback everyone. I have recalculated the numbers. Purchase price is lower because that is likely what we would offer. I took out appreciation, added in management expense (even though my brother and I intend on doing most of this). I am VERY confident that rent would bring in a min of 1k/mo. I could probably add a trash expense, but tenant will pay other utilities. 

Thanks everyone. I'm going to run the numbers again with some changes you have mentioned. I'm very confident in the $1,000 rent, and my realtor also agrees. I think it's possible to get a bit more but I want to be conservative. I don't think this property is an amazing deal, but at what point is it a solid deal? The house is really charming and walking distance to miles and miles of running trails and nearly brand new, large community center. Also amazing school district. 

I'm going to make changes and run it past you all again. I really appreciate your time! 

Hi everyone, 

I'm looking to get into my first investment opportunity. I'm currently looking at a great potential buy and hold rental. From my initial analysis, it looks like a good deal. I've already looked at the house and know it's condition. Does anyone have any solid points as to why this might not be a good property to start investing with? ALL thoughts and comments are appreciated. Thank you! 

Thank you! I agree with what's been said above and I also found more documentation on this issue. And owner occupant must be on the deed and must live in the HUD home for 50% or more of their time for a year. Multiple people can be on the deed, but one person on that deed needs to be an occupier. Penalties can be harsh.

Thanks David. So what I have been gathering from my research and I think your point suggests this, is that it needs to be my father who actually bids as the buyer (he is a senior cit)? I'm not sure how that would work because my brother and I are the ones with the purchase funds and would like to keep it in our name, but keeping occupancy within our family. My dad currently doesn't own any property, but my brother and I do. It's sounding like this is going to be a no-go and we'll have to wait for investor bidding to open. 

There is a house I am interested in bidding on and currently the HUD property is only accepting owner occupant bids. If my brother and I bid on this property (full asking price cash offer) with the (honest) intention that my father live there for a minimum of a couple years but likely more, would this still be considered "owner occupancy"? Obviously my family wants this home, but it's very important for us to stay within the HUD regulations and will risk loosing the opportunity to buy the house by waiting until the investor bidding is opened if it means keeping within those regulations.

Thank you.