All Forum Posts by: Danielle Gray

@Anthony Wick My understanding in being able to carry two FHA loans is the reasons you mentioned along with an exception of the second property is at least 100 miles from the first property. Then no, he wouldn't need to refinance and can maintain the first one. I mentioned them refinancing because it seems they want to stay in that area with their investments.

Am I correct to assume the remainder of the purchase will be taken care of through a mortgage? It sounds risky to me to have to handle paying back a line of credit and a mortgage at the same time. How soon are you planning to pay the LOC back? Yes you may be able to handle the payments now. But as COVID has shown, a person's situation can change in the blink of an eye. Also, with you having limited funds upfront, how are you planning to handle emergency maintenance that may come up?

It is a requirement to live in the property for a minimum of a year under an FHA loan. And even then, if he chooses to move out after the year it has to be refinanced if he will not keep it as the primary residence. As Kyle stated, what you and your brother are proposing is mortgage fraud. FHA mortgage fraud can lead to up to 30 years in prison and $1,000,000 in fines. Either your brother goes through the correct process and live there for at least a year or search for a loan more investor friendly. Trying to go for 4 unit cash flow is not worth it.

Having the proper insurance in place is not just about the medical coverage. This is a red flag to me as if he doesn't even have general and workers comp insurance, I would not trust that he would go through the proper process of pulling permits and anything else that is required to do the job within the legal scope. You want to make sure that not only the possibility of injury is covered, but also if they make the problem with your roof worse than what it is, or even damage something on the neighboring property, the correct insurance is in place to cover it. By not having all of the proper insurance you are at risk of picking up the tab for many things that can go wrong. Better to pay the extra $300 now and not $30,000 later!

Hi Justin! The answer to this will depend on your goals with investing. You will need to look for lenders based off of what your strategy and needs are in regards to buying properties. Not all lenders provide the same services. And not all lenders work well with investors. Nail down what your plan is and work it from there. 

Not certain where your doubt is stemming from. Are you doubting your method? It sounds like everything is going well with the properties you have. Never compare yourself and what's working for you to someone else. Each person has a different plan that specifically works for them and their circumstances. Like Daniel said, check your numbers. And if it all makes sense and the numbers work stick to what you're doing.

Unless agreed to prior, broom swept clean is the standard. You have proof of literally broom sweeping clean and it's not noted as a requirement in the contract. So at this point it's in the hands of the buyer. Like Russell stated, if they choose not to close because of this they are in default of contract. 

Congratulations, this looks amazing!!! Great job also in taking advantage of the shutdown. You picked a great area too in Baltimore. Wishing you the best on your journey!

Unless something is outlined in the lease, it sounds like this is yours to pay. You put in the lease that they were responsible for their own AC, but nothing about if it over ran the circuit. You even recommended to them to run 3 units since the prior tenant had done so. It's also your responsibility to provide a functioning electrical system. It sounds like your system was bound to blow eventually and needed the upgrade. Just because the prior tenants didn't have problems before doesn't mean them running 3 units didn't cause the problem. I would have my entire electrical system checked. Yes he upgraded the breaker, but there could be another problem. Take this lesson of only $220 in fees and try to head off a possible bigger issue down the line.

If it's full ride I say go for it. You aren't losing out on anything and you actually gain the opportunity for a one-up with the ability to take classes specifically geared towards what you plan to do with real estate investing. Since everything will be paid for, get a job while in school and use that income to help fund your real estate goals. Also, depending on your plans with REI, you may find that you want to keep that in the background as passive and work full time elsewhere in another field. There is so much opportunity to gain from college - especially if you're going for free.