All Forum Posts by: Clay Rikard

Hi,

I recently moved to Florida from Louisiana. We are renting our old house out and bought a new one in Florida.

The area that I bought in is pretty expensive and I can not afford to buy an investment property here right now.

I was curious to yalls thoughts on out of state investing in markets like Birmingham, Montgomery, Detroit, Chicago, and other markets where properties are relatively cheap? Ideally I would like to self manage, but wouldn’t mind using a PM if it just made way more sense and didn’t cost an outrageous amount.

Back in Louisiana we are self managing since we have family there, know enough people to call if something goes wrong, and we are back in town every month or so. So it makes sense for us to not use a PM currently.

Thanks!

@Jeff Shumway

So I am curious about buying a second home in a vacation area that could potentially AIRBNB or VRBO well. I know the verbiage is not specific of the number of days you must stay in it as long as you do stay at least “some portion of the year” but I was unable to find what happens after that first year?

So like on an FHA loan I could buy a house and fulfill the 1 year of primary occupancy and then rent it out with no issues. Are you saying the same can be done with a 10% down secondary home? As long as I stay in the house for some portion of the first year then I could then rent it out without ever having to stay in the property after year 1?

Thanks!

@Bobby Larsen

So pretty much which I said was describing why the housing market as a whole went up.

And why rents increased when the housing market went up is bc rents are tied to the value of a home even if not perfectly.

@Bobby Larsen

More so of a trickle down effect from it playing a major role in the overall housing market increase.

Not saying that if a house’s value increases by 20% that rents will necessarily increase by that same 20%, but they tend to trend in the same direction.

My short answer and biggest 2 factors in my opinion (besides the supply shortage):

1) +25% of the money in circulation was printed last year

2) Fed wants to keep rates low till 2023

*Be cash poor and asset rich*

@Andrew Postell

Awesome! Thanks a lot. That was super helpful!

@Andrew Postell

Yes that all makes perfect sense. I’ve just seen things like no more than 180 days can be rented and a bunch of other things, some contradicting one another, so thanks for the clarity on that.

And right! That's what I'm doing with my old house right now that was an FHA loan.

Does that same logic apply for a secondary home? As long as it’s my intended “secondary home” for a year can it then be a full time rental or would it need to permanently be a secondary home with restrictions on how often I can rent it out?

Thanks!

If I buy a secondary home in the mountains or at the beach with a 10% down loan for a second home am I allowed to rent this property out on Airbnb or VRBO? I’ve seen some places say as long as you stay there 14 days or as long as you rent it out 180 days a year or less and I’ve seen some sources say that you cannot rent it out at all.

Also how you can buy a property with an FHA loan and then a year later rent it out without any issues, I was wondering if a secondary home mortgage was similar in that after a year it's fine to rent it out full time if I wanted to?

Please advise.

Thanks!