All Forum Posts by: Cody Richard

@Jaysen Medhurst I know what you mean. My other assumption was that with a refinance, our monthly payment would decrease. But I definitely understand what you're saying.

@Jaysen Medhurst Thanks for your reply! Our plan with the current house would be to rent it out by the room. We expect to be able to make about $1800/month. We are currently renting 1 room at $600/month so it feels viable. Our current payment (including taxes/insurance) is $1450/month. The cash flow seems decent enough to justify trying to keep the property, but definitely isn't a homerun.

I think selling the property is a feasible option for us, but I worry that we won't be able to put down 20% on a multi-family home to avoid using an FHA loan. I know Mountain America offers a 10% down loan in Utah that I'll have to learn a bit more about!

@Andrew Postell Thanks for the detailed response! This information is very helpful. I don't believe we would need the rental income from our current home to qualify for a new one.

Based on some of your points, I have a couple additional questions/comments:

"If we assume this is a single family home (if it is NOT please let me know as it will change the advice a lot) then you just need 5% equity to refinance. So you could refinance this loan and not have a home with an FHA loan. But does that help you."

• The property is a SFH and we would most likely have 5% equity when we would look to refinance (depending on the appraisal). If this is the case, it sounds like we could keep the house in my fiance's name and that would allow me to buy a multi-family house using an FHA loan. Is that correct? I'm not sure that we would go this route, but it'll be good to know our options!

"If you do not have BOTH of those, then FHA will not permit you to use rental income from your vacating property to help you qualify for your new loan. UGGGG!!"

• In which scenario would this apply? Would it apply if we wanted to move 100 miles away and use an FHA loan, but needed the rental income to quality?

I'm not sure if we will end up moving 100 miles away, but it could be a viable option! We will definitely look to get prequalified to give us a better understanding of where we currently stand.

Thanks again!

Hey everyone! My wife and I bought our first house in April 2019, which is what got us into real estate investing. We used an FHA loan to buy that house and I wanted to get a better understanding of our options for re-financing an FHA loan to use it again (this time to buy a small multi-family property). For some context, here's a quick overview of the situation:

• Bought the house in April 2019 for $245,000
• Me and my wife are both on the loan & title
• Looking to buy a new house in June/July 2020
• Loan balance will be between $230,000 and $235,000 in June/July 2020
• Zestimate on the property is $258,000

Based on the information, I have some questions about how we can proceed:

• If I remove myself from the loan & title, would I be eligible to use an FHA loan to buy another house?
• If we decided to refinance our loan to a conventional mortgage, I assume we would have to pay about 30k to the bank as part of the process to increase our equity in the property to 20%. Is this accurate?
• Are there any other options for proceeding that would allow us to purchase a new house in June/July?

Any advice/help is appreciated!

@Lauren Hogan Living in Utah comes with a great quality of life! From the mountains right outside your window to the National Parks nearby, Utah has so many great natural attractions that have kept me in the state. Just recently, Utah was rated as the 4th best state to live in the United States by U.S. News. The key factors that made Utah so great were the economy (2nd best), infrastructure (3rd best), and fiscal stability (5th best). Having the 2nd best economy is an example of why the real estate market in Utah has been so great to invest in. There are many cash buyers for those looking to sell and many financing sources for those looking to buy! Hope this helps :)

@Hayden Worwood Welcome to the community! I just started a few months ago and one thing I've learned about BRRRR investing is that it's super important to learn how to find a great deal! I would begin by learning about finding great deals. Feel free to PM me if you'd like to discuss further.

@Account Closed I will direct message you both with details!

@Ola Dantis Thanks! Let me know if you are interested in participating in the group.

@Anita Cofer @Brandon Gamblin I'll reach out to you both. It appears our posts are getting removed for adding contact information.

Hey everyone! I am a new investor that does not have a major capital reserve at the moment. Since I'm in this position, I was considering looking for a partner to provide the capital in an investment while I handle finding the deal, performing any necessary maintenance, and managing the property. Currently, I am trying to determine what information I need to present to potential investors to prove to them that I'm a worthy partner. Experienced real estate investors, what advice do you have for someone in my position?