All Forum Posts by: Chafic El Amatoury

Hello to all Inverstors and Landlords,

 my issue might be a bit basic, but it is vital and I believe many can benefit from it. After a long search, I finally purchased my first Househack property. It is a great one for Cashflow and it will make me financially free just on its own. I want to do things right and to the letter as it pertains to the law.

I was told by a landlord and realtor friend of mine that what you must do is open up a separate Business Account, in your own name (since the property is in my personal name (FHA) ), and then put the deposits in savings accumulating interest, and the checking is for rent.

I did that, now the bank is telling me they can't really keep a business account in a personal name, and that it would have to revert back to a personal account, unless I call up the secretary of state and register myself as a business or a sole proprietorship.

The funny thing is I already have an LLC, which I believe I registered as a sole proprietorship at the time, but I didn't want to mix the 2 because this property is in my personal name, and this LLC will be used for other strategies in the future.

Do i register myself as a business, do i use my LLC for this account and set it up as some kind of management company here, do I let it go into a personal account and just use that, could that not be co mingling of funds, especially if I pay myself from there?

Sorry if this is too many questions, I am in the state of Minnesota here. I appreciate anyone's informed response in this matter.
Thank you :)

Hello there,

I'm a new investor in Minnesota. I have a question for mortgage agents, lenders or investors who have dealt with this:

Can you use fair market rents to help with financing the purchase of a property??

for example, if you are just a hair away from being able to qualify to finance a purchase (FHA), but the rents are at 1000$ in an area where it can eaaasily go for 1800$, (and all month-to-month) does that count for something? and if so, how much?

Thank you!

Hey guys,

I'm a young starting RE entrepreneur, been studying and learning for years, and now I'm launching with a major Househack and would love some guidance. I just got approved for a 400k FHA loan, want to use it to its max because it will probbly be the cheapest I'll ever get (3.5% down) I just spent a few months looking and calling and analyzing and am currently looking at 2 deals:

- Deal #1: A 120 yr old gorgeous brick mansion, technically a 4 unit but it includes 14 bedrooms, current owner is renovating it and adding up to 16 bedrooms in it. He also has an entire sorority signed up with signed leases for the next school year starting this August (15 girls, 14 already signed) with me living in it (becoz FHA) it will start cashflowing 2100$/month , and it has HUGE potential for later as the basement can be redone to add units, same with a very very huge attic level, easily 3 or 4 more bedrooms, and there's an extra ADU/garage with a second story that can also be redone into smthg decent, all of these already have water and power set up to them.

Downside: Would have to live with 15 freaking 20 yr old girls (I'm a 31 yr old man), this property is 2,5 hours away from the cities (I'm in St Paul MN) or any major center of civilization, and all these improvements to add any units or rooms wld take laaarge sizeable investments I can't afford right now.

- Deal #2: Also Gorgeous large 4-unit Townhome in the heart of the cities. Each unit has 3 Bedrooms and 2,5 baths, and a 1 car garage. It was built in 2001, just had everything replaced and redone,very sizeable everything, it really is the perfect classic 4 unit townhome for house hacking.. current tenants are all Month-to-month, all but 1 have been there for 7+ years, 3 of them are section 8.

Downside: Property does NOT currently Cashflow with me living in it, however if section 8 tenants are raised up just to Current Market rents it will cashflow abt 300 easily, and if I rent by the room for a very conservative 600$/room it can go up to 1866$/month. There are a total of 12 bedrooms and 12 bathrooms so if i just bump it up to 650$/room we're immediately up to CF= 2388$, and this is without even considering AirBNBing some (or all) of them, or furnishing them or anything else to add value... Being as this is central in the Twin Cities and not in a far away college town, the demand is not the problem, just knowing to what extent it can rent to by the room.

Sorry about the long paragraph, I would love to know if someone has a seriously good way of knowing to what amount a room can rent for, and what I might be missing or not considering in this current choice. I have been all over Rentometer, Zillow, Craigslist, Roomies, all kinds of other posts or tools, but the resources for "by the bedroom" are not as precise or dependable, and I just don't feel confident enough about these would-be numbers to make a choice..

Feel free to voice any thoughts or useful advice, or point to any resource or hidden notion I'm missing that any experienced RE investor might be able to contribute :)