All Forum Posts by: Dallas Regimbal

I would say I agree with the rest, the second option would be best. If you purchase a property in a B class neighborhood with reserves and intend to fix it up, you'll be more secure while still being able to force appreciation. Since you're planning on house hacking this would also likely lead to increase in cash flow. Having reserves is also the best way to be protected in the event of a major repair or other potentially costly situation. 

Hi Gerald, 

To answer your question regarding the use of another FHA loan. You would need to refinance out of your current FHA loan on your primary residence, in order to use an FHA loan to purchase a new multifamily property. As you are only allowed to use one FHA loan at any given time.

@Javier Emilio Tirado I would say it depends on what kind of property it is and what your market's rules and regulations are for STR's. This is because if it is a single family residence, then most likely the appraiser will use comps of other single family residences and not consider the income. Since most buyers would likely just live in the property themselves. A majority of your buyer pool would likely be using a loan to purchase and will require an appraisal. So you'd likely need to sell to an investor using cash who plans to use it as a STR to sell for more. Also your area's rules and regulations can affect this because some do not allow the Short Term Rental permit to transfer to the new owner. Such as with Bend, OR only properties who have a Vacation Home Rental permit and who applications were filed on or before April 15, 2015 will run with the land and transfer to the new owner. The new owner then has 60 days from the date of closing to file for a new operating license. Any Short Term Rental permits for Bend, OR are considered applications filed after April 15, 2015 and are issued to you as the owner and will not run with the land. So when you sell the property, the land use approval will terminate and be void. If the new owner would like to use the property for a short term rental then they will need to apply for a new Short Term Rental land use permit and if approved, a new Operating License as well. That is why it is going to depend on your market's rules and regulations and why I highly recommend you go over them thoroughly and review them often, as they are subject to changes. I hope this helps!

 I agree with Adam and suggest always going by the lease.  

@Jonathan Chu It is difficult to answer that question without knowing your long term goals and how "passive" you want your investing to be. Typically, investing In multifamily units is going to allow you to scale faster and more efficiently. If you're willing to house hack you can get into the property with a low down payment of 3.5-5% depending on the type of loan you choose and then move out after the minimum requirement of typically 1 year and repeat the process. If you did this every year for 5 years you could own up to 20 units if you did that with single family homes doing the BRRRR you won't be able to get nearly as many units in that same time frame.

Find out what other units in your market charge for a pet security deposit, as well as how much they charge extra per pet then charge that so you're still competitive. Why would you want to limit your potential pool of renters by denying pets, when your property can rent faster and for more money if you accept pets. You should have a quality tenant vetting process in place already. Quality tenants take good care of their pets which can make a big difference in if the pet causes damages of not. 

@James Robert Owner occupying and only putting 5% down and then moving out after a year and repeating will allow you to maximize your returns and get you to financial freedom faster. I would recommend that no matter the direction you go be sure the numbers on the property work as not only a short term rental but a long term rental as well. The reason is that the laws and regulations for STRs are subject to change and you want to be sure to minimize your risk before purchasing. I also agree with some of the others suggestion of looking into house hacking as it can be a great way to scale quickly but overall just be sure the numbers work for you and your long term goals. 

@Logan Walder I think there are some basic questions you can ask to determine if an agent is investor friendly. For example, if they own any investment properties themselves, what market rents look like in that area, what are the average PM fees for that market? However, finding out if they are the right agent for you is a different story. That is going to depend on your situation and long term goals. For example, are you wanting to invest in STR, LTR, SFH, MFH, turn key properties, value add and the list goes on. This is important because agents tend to have a niche such as for myself I work with investors who seek small multifamily 2-4 units properties with value add opportunity who are looking to house hack and do LTRs so I may not be the best fit for someone looking so turnkey SFH that plan to do STRs. I hope this helps!

@Emily Shrub I agree with the others about typically in Oregon it is hard to find a small multifamily that will cash flow in year one but that shouldn't be your main objective in my opinion. In Oregon, like much of the west coast it is more equity driven than cash flow driven. A good way to look at it instead is as you stated in your post is thinking of the negative cash flow as your new cost of living. The main goal of a house as stated by the others is to help cover a portion of mortgage to reduce your expenses. So lets say for example, you're paying $1500 in rent currently and you find a property where you only need pay say $500 to cover the mortgage after renting out the other unit or units. You would be saving yourself 2/3 the amount you were paying in rent. Of course, there are repairs and such but that can be paid for with the money you saved by reducing your cost of living significantly. Then every year rents with slightly increase and you'll be building equity over time. You can move out after a year or longer depending on what the numbers look like and repeat the process. I would consider what your cash flow would look like after year 2 or 3 once you have moved out and keep up with market rents each year. Just be sure the numbers make sense for you and your long term goals I hope this helps!

@Melissa Deacon Since you said you are new to the investing world I would highly recommend you watch the newest BiggerPockets Podcast, a Biggernews episode that just came out yesterday. They do an amazing job of breaking down some of the differences between working with banks and mortgage brokers including cost. They have an excellent guest Mat Ishbia from UWM (United Wholesale Mortgage) who goes into great detail on this subject and provides amazing insight! I believe this would be a great place for you to start.