All Forum Posts by: Dave Allen

 He would not be managing he just knows the area. I would factor in 6-10% for property management.

i have worked in property management for 3 years before and through the pandemic, and I have been seriously searching for property to invest in for about two years. I currently manage my wife's duplex, and we're hoping to reposition ourselves so we can buy a home to live in and still purchase investment property, but one that can pay for itself.

 I live in California, this is a bay area property.

were not looking to move out of state and house hacking is less palatable when a duplex costs 1.6 million. We have found some fixers farther away for as "little" as 600ks. But the rents don't justify it, for example we are renting a 3 bed 2 bath house with a huge backyard in rancho Cordova for 2350/mo, so duplex rents around here are 1800-2200 ballpark. So you can understand why I was blown away to see prices half that or less with rents 1500-1800 in Duluth. Have done some preliminary research and will do a deep dive, just wanted to see what folks thought of there were any obvious reasons why or why not or any markets similar that I should be considering. I have friends who bought in Texas, Chicago, Minnesota and Tennessee so I've been watching those markets. 

I'm in a bit of a situation

My wife and her parents are selling a duplex they own together.

My wife is trusting me to re invest into cash positive investments.

We could stand to take as much as a quarter million, and tax free since we lived in the property 2 of the last 5 years.

What are some suggestions for markets that would provide cashflow? I'm looking at Duluth MN because of a video posted on BP, but I recognize this is an opportunity most would dream of, because it's one I've often dreamed of

Well now it's in my lap, and the pressure is on.

Hit me with your scenarios, what would you buy? Where?

Thanks for reading

David

Update: It did not help.

We're going to either have to sell or refi to get her off the mortgage or I'll have to purchase investment properties solo.

 Thanks for the comment!

so little update, we're working with my broker/underwriter to find out if having the current tenant sign a new lease with my wife's name added to it would satisfy the requirement, (our side only requires a signed lease because it's a "new rental" so perhaps the other side would be "new" to my wife. I find out Monday I'll post if it works or not.

Hey BP folks!

First post, been reading and listening for years now. Wonder if anyone has run into the issue I'm having

My wife and her parents went in on a duplex together and the three of them are all on the title and loan.

My wife and I are in escrow on a house in Citrus Heights. The loan we were applying for is an FHA, which stipulates we must provide a signed lease for our half of the duplex (to be newly rented out) but for the other half which the parents "own" (in reality all three are equally owners of the entire property.) we would need to provide proof of rental income on our tax return, however her parents claimed that so we seem to be SOL.

The mortgage is covered, we can rent it out no problem, but the underwriter is saying on paper it looks like she is responsible for the whole duplex and the rent for half of it is unreportable. Is this really going to get us dead in the water? The only options that seem available to us are add the parents to our application, remove either parents or wife from the duplex, or in the future put the rents all in my wife's name which might negatively affect my in-laws.

You guys are my Hail Mary, hoping you can spot a solution I'm missing!