All Forum Posts by: Keith N.

@Account Closed Welcome to Raleigh and to BP! You'll find some great advice on here.

I plan to join as well! I look forward to meeting other BP investors. I will keep you guys posted.

@Justin Thompson

 Gotcha, thanks.  Hypothetically speaking, What type of repercussions might ensue if caught?

@Ryan Dossey

 Duplex + house hack is certainly what I would ideally like to do, however they are hard to come by in my area.  There are some good cashflowing 3 and 4 bedroom condos in my area, however I don't particularly feel like have 3 other roommates in one space.

I messaged you in regard to the marketing-related stuff I had asked about in my post the other day.  I'd love to speak with you more about how to find off-market duplex's.

@Wayne Brooks  Good Point.  There will be closing costs and additional fees. I fully understand that I need more cash than only the amount of the down payment.

@Colin Smith

What if I were to get a 5% - 10% conventional loan which from what I understand is a pretty common down payment for an owner-occupant?  Am I still expected to live there for a year or are the rules different.

Also, I will be buying in NC if that makes a difference

Hi guys,

I am planning on purchasing my first investment property (also first property ever) very soon. I plan on owner occupying this property for a short period of time, and then quickly buying a second property and turning the first property into a cash flowing rental unit. I have enough money saved to put 3.5, 5, or even 10% down on a loan and I do in fact plan on using the FHA loan if I can qualify. I know that most pure investment properties require 20% down, which I cannot afford at this point.

My question is about the legality issues of purchasing a property using the FHA loan (or a conventional loan with a low down payment). How many years are you supposed to "intend" on owner-occupying this unit to be approved for the loan. Can I "intend" to live in this unit for 3-6 months and then move out, or do I have to "intend" on living in the unit for 2 years? What could happen if I do actually begin renting out the unit before I am technically supposed to?

I am not trying to say that I plan on breaking the law or doing anything illegal, however I would like to know the specifics of the rules when applying for these types of loans which are normally only given to people who plan on owner-occupying.

Basically, I want to have the opportunity to begin making money as soon as possible.

Thanks!

@Ryan Dossey  Thanks for the advice.  

Because I am looking for very specific properties multi-units where I personally would like to live (needs to be close to where I work), the list of owners I pull probably wouldn't be as big as some other investors.  However, sifting through county records does sound like a pain in the *** so I'd probably buy a list.

As far as typing, stamping, mailing the letters... I have a degree in marketing and if I do some research I should be able to come up with something to generate good leads, so if there is anything that I would be doing myself it would probably be this.  I will look into Jerry Puckett though as he appears to be an expert in this niche.

I'd love to speak with you a little more and pick your brain about more tactics to finding the awesome off-market deals, but I am at work now.  I will PM you later!

@Henry Moore Keep us posted on how the leads from these signs turn out.  I have been curious about different marketing methods for the Raleigh area as well.

@Ryan Dossey Okay, so what you're saying is you'd recommend I:

1) search some type of country records type thing and find the home addresses of the owners of these multi's.

2) Craft a professional looking letter stating I like their property and I'm interested in buying... also include all my contact info

3) Send a physical letter (maybe in an envelope, etc.) and send it to their home address

If my understanding is incorrect, please correct me.  Additionally, I'm not exactly sure what you mean when you say "if they send someone your way" and talk about a "finders fee."  I'm not sure I'm familiar with this process so if you could elaborate it'd be much appreciated.

Thanks!