All Forum Posts by: Chaz Kerns

Have a client that has serval SFH's & Duplexes across the US. He currently has them placed in his own LLC. Can someone with more experience give some guidance on how he might better structure his company to better protect himself and/or his other assets? I am unsure which state the LLC is currently registered with; I believe it to be TX.

Current properties are in WA, TX, NC 

Or if you know someone locally willing to give some guidance that would be awesome. 

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I am not saying you can't get started with a $1000. I would advise increasing skills to increase income/savings rate to work towards a HouseHack. 

But really there are many routes you could start working to. I think more than anything, I would learn a little about the various routes and join some local meet up. So many great folks that openly share their knowledge in our area. 

@Amir Zi I did some digging in guidelines and talked with our national underwriting team to get some specifics on FHA loans for your situation.

FHA does not allow the use of Rental Income from an ADU, short or long term even when reported on schedule E(tax returns). Rental income is allowed for Primary if 2-4 units or 1 unit investment.

To utilize rental income from your departing residence it would require an appraisal to show 25%+ in equity, 1007 Comparable Rent Schedule, & executed lease of at least 1 year. 

The new primary multi-unit could use the same 1007 values for rent to help qualifying income, however a 1 yr lease is required.

Side note, depreciation shown on Schedule E can be added back for qualifying income for rental properties.  

If you want to qualify any rental income from the departing residence FHA requires you be moving 100 miles away from the current/departing residence. You mentioned North Seatttle, so that would be moving to as South as Castle Rock/Longview(straight line) or as South as Napavine in 100 road miles.

I know that is a mixed bag of info, if you want to go deeper be happy to chat. :) 

Michael, I love the spin you put on this. You are correct, a FTHB and an RE Investor(new or seasoned) face completely different issues in our market. Greatly appreciate the input!

Hello Fellow BP community. Our branch is brainstorming a Mastermind Event for our business partners to attend and would love some feedback on good value add topics. We have considered hosting a panel of industry experts that could present on these specific topic(s). No idea, is a bad idea so give me everything you got, greatly appreciate it! :)