All Forum Posts by: Clayton Crawford

Hello again BP!

We have been saving and planning to purchase our first multifamily. I have been working with Well Fargo since the purchase of our second property and my loan officer and i have been planning on the down payment for the multifamily to be 15%. However, yesterday i put in an offer for two duplexes and contacted Well Fargo, only to find that we would have to pay a minimum of 25% for each property. When i asked why, i was told it was because its a multifamily.. Now I'm wondering why, and if anyone know of any options that will allow me to pay less than 25%.

I understand that i could pay less by using an FHA/203K, but we do not want to move into a multifamily as our first option. I also know that we can always just plan for a 25% down payment, and if that's the best answer to the question, i will gladly do so.

Thank you all very much for your input. My wife and i have learned more th

Hello again BP! 

We have been saving and planning to purchase our first multifamily. I have been working with Well Fargo since the purchase of our second property and my loan officer and i have been planning on the down payment for the multifamily to be 15%. However, yesterday i put in an offer for two duplexes and contacted Well Fargo, only to find that we would have to pay a minimum of 25% for each property. When i asked why, i was told it was because its a multifamily.. Now I'm wondering why, and if anyone know of any options that will allow me to pay less than 25%.

I understand that i could pay less by using an FHA/203K, but we do not want to move into a multifamily as our first option. I also know that we can always just plan for a 25% down payment, and if that's the best answer to the question, i will gladly do so.

Thank you all very much for your input. My wife and i have learned more than i could have imagined by simply asking  simple questions the right people. (Biggerpockets forum members) 

We have two properties that we currently rent out. We acquired both through use of the VA loan. We house hacked the first for a year, and it currently rents for a great price and creates decent cash flow

(rent = $1100 & cash flow = $220 a month)

We are now  currently house hacking our second home. We rent one of the bedrooms to an old friend who's job keeps him away about 2/3 of the month.  (rent for one of the three bedrooms = $600 a month)

With the rent from our first home combined with rent from house hacking, we are officially two mortgages in, with no mortgage payment, and a little cash flow cherry on top!!

I'm wondering about some options to free up our VA loan within the next 12 months. We plan on leaving our current home within the next year, but we've reached our cap for the VA. I know we can free up the loan by refinancing out, but i'm wondering, what are some other options that any of you may have seen or heard of?

Example; I was thinking, would it make sense to just keep the two VA loans and finance our next house hack with a FHA/203k? or something like that.

As always, I very much appreciate your feedback and thank you all for your insight. 

well, I've talked to the county and learned that there are some zoning hoops to jump through in some cases, but nothing really stopping me. So, i'm going to see what i can do with this. 

@Chris Herman I'll definitely keep you posted! Lets hope it's not me showing our fellow BP members what not to do..

I'll check now. That's a great point, thanks!

Hi, BP! I'm just looking for general ideas, experiences (good and bad), feedback, and information on converting a large single family into a multi-unit. 

I'd like to completely gut this house I'm looking at (it needs it by the way) and create a duplex with it.

@Wayne Brooks Thank you for the information. In your opinion, how much land would you consider sufficient to attract a developer? Also, what's the most likely fate of the small amount of land that touches a subdivision like the one asked about? It seems like there must be something that can be done with it  to provide some sort of service to the area. 

thanks a lot for your input!

Hello BP! I'm looking at a piece of property that's sitting right next to a nice sub division in my area. it's over an acre and there's a little house on it. But, the home is basically fire wood. I'm wondering what are the positives and negatives of purchasing real estate like this? Can i buy it and just add to the sub division? Hold it and look for developers? etc..

Any information on this would be great. If you have any questions about the property, please ask.

thanks.

@Jeff B. 

@Kevin E.

thanks for the info! 

@Kevin E. Thanks for the input, you have a great point and I'll be sure to remember that down the road.  Good luck!

@Nick C. I've been looking into real estate majors, It's becoming clear to me that i will have to relocate, but that sounds like a whole new adventure to me! Thanks for your input!