All Forum Posts by: Cade Zerr

@Cassi Justiz

Okay so what would be the next move? Could I still go under contract and then figure out if the tenant/future tenants would be willing to move out? Then either cancel the contract if they don’t want to or go through it they agree? I’m not sure the owner would want to go through the time and then have the deal fall out.

How do others with FHA loans convince the owner to pay off the tenants? It seems very risky on the owners end, especially if the contract falls through.

Is the best option to follow through with the loan in hopes of convincing/paying off tenants? What would be the repercussions of not being able to occupy the house with an FHA loan?

Could something like a rent increase basically “force” them out?

Thanks again.

Hey guys,

I am a current college student who's looking into buying a duplex with an FHA loan. There is a specific off-market property who's owners I have been in contact with.

The duplex is a 4 bed 2 bath in one unit and a 1 bed 1 bath in the other. I am having troubles finding a way to make this work as it is currently leased out until the end of July 2020. As well as the owners just leased out both sides to other tenants for August 2020 through July 2021.

My question is, I believe that with an FHA you have to move in within 60 days of closing. But I'm not sure what to do with the current tenants and the future tenants.

I was thinking that the current owners may be able to pay off the 1bed unit, allowing me to move in. Or just wait to go through closing until 90 days before the lease ends.

As for the future tenants that are leased from Augusta 2020-July 2021. I’m not sure what to do. Will the lease be able to be terminated? Or will I need to pay the future tenants off?

Any help is greatly appreciated. Thank you!

@Derek Felch @Spencer Cornelia

Yes! That’s exactly what I was planning to do, rent out each room separately. How would you suggest finding rent comps for something like that?

Thank you Derek! I’d love to connect sometime. If you have any suggestions to local real estate agents, brokers, or lenders that you’ve had good experiences with that would be much appreciated.

@Jake Denning @Marc Edwards

Thank you for your advice! But yes, I'm looking to house hack until I'm out of college with the intent of living rent free, with any extra cash flow as a positive. I would love to buy a house that needs a little bit of updating and using the the time in college to build equity in the house. My concern is how much updating will FHA allow and still finance. Secondly, should I focus completely on the house hack in Lawrence (where I'd be living) or also attempt to build my portfolio in KCMO while house hacking. My plan is to buy in the upcoming months- getting closer to winter where I'll have a little more leverage in the market.

Thanks again!

-Cade Zerr

I'd like to add that I have talked to several local banks, credit unions and have been almost "pre-pre-approved" for a 3.5 FHA loan as well as a 20% down conventional loan. With the help of my decent credit score and my parents as non-occupying co-borrowers (to increase my debt to income ratio).

Hi!

First off I’d like to say thank you to you all for the information that is posted in here! I have found a lot of very useful information and I’m grateful that I found this site.

On to the background and questions.

I am a 18 year old freshman in college at the University of Kansas in Lawrence, Ks and am on track to graduate in 3 years. I have been interested in the business side of things since the beginning of high school and the real estate market for a couple of years now. I have now finally been put into a situation where I can take action. Throughout the last 4 years I have been fixing and flipping dirtbikes, ATVs, boats and other toys. This job/hobby has allowed me to profit more than $20,000 in which I have saved/invested for the future. I am now planning on using this as a down payment for a house hack and possible investment properties in the Kansas City area.

Lawrence is a very tough market with high prices and hard to find cash flowing properties but Kansas City is a great market if you find the diamonds in the rough.

My question is... should I still look into a house hack in Lawrence or just focus on finding an investment property in Kansas City.

It’s hard for me to come to a compromise with paying rent when I know there’s ways to let my money work for me instead of “giving it away” to the landlord.

Any suggestions and advice would be much appreciated. I’d love to meet with anyone in the area as well. Thank you.