All Forum Posts by: Derrick Dill

In my area there is no back-up, default person that pays it. If they don't pay, they don't get electricity.

Sounds like you should buy the neighbors house. Put in an offer at 80k, fix it up and sell it for 150k :)

you need to speak with a few lenders to see how much you're pre-qualified for. If you aren't pre-qualified for enough, get a family member or close friend to co-sign with you if possible. If your debt to income will allow it, go for the tri-plex, probably will need to go FHA loan. GL

1. Cash-flow is very possible, depends on which market you choose.

2. Success is very possible, although turnkey hasn't been around for too long, it's harder to determine long-term success.

3. Depends on which market you are choosing. If you go in Texas or Florida chances of appreciation are more likely higher, with less cash-flow. If you choose somewhere like Ohio, you will have better cash-flow, most likely less appreciation.

I increased my true net-worth by purchasing 2 turnkey properties last year. They cash-flow and lowered my debt to income ratio.

You should keep contributing.

You can take up to 10k out of your ROTH IRA tax and penalty free for first time home purchase or education expenses.

You can use $ in your ROTH as reserves (for lender underwriters to consider as part of your assets). 

Bill,

I'm in a similar spot to you, just turned 29. I'm a nurse, grossed 150k this last year, house hacked a duplex in California (doesn't cash flow, but mortgage 600$ after rental income). I find myself putting in 60+ hours a week (and I love my job), so my time was more limited. My first year (85k income) working I bought my duplex. 2nd year (150k income), I bought a SFR in Kansas City, and a duplex in Ohio. I pretty much peaked last year income-wise.

I still have student loans, so I save about 2500$/month.

I also think 50k+ savings might be a little ambitious, I saved 30k+ last year and live relatively frugal. I'm not saying you shouldn't shoot for the stars, but to curb your expectations a little bit based on us having similar situations.

Some expenses you might not have included: 

When I got my duplex, I put in an AC, fixed plumbing, washer/dryer, fridge, window blinds, etc. Not sure what you already have, but the basic necessities of living costs more than I expected to get my home up and running.

Your lender should still include 75% of the rental income, it's not until it's on your tax returns that you can report the full income.

Option 1: Pay down some of your debt (If you pay off your smallest loan it will lower your DTI)

Option 2: Hard money lender or credit union

Option 3: Refinance your loans/mortgage to lower your payments thus lowering your DTI

Yes, all properties are eligible as long as under 4 units. Has to be in livable condition (no broken windows, utilities working, no safety hazards) and seller has to pay for it. FHA requirements look out for the buyer, and has an FHA inspection to make sure everything is in order.

Source: I bought owner occupied duplex FHA

No. One FHA loan out at a time. If your purchased it without using the FHA loan, you still have one.

The article you posted is clickbait for "eliminating mortgage interest deduction":

In the article it says "The National Low Income Housing Coalition’s United for Homes campaign calls for reducing the amount of a mortgage eligible for a tax break from $1 million to $500,000—impacting fewer than 6 percent of mortgage holders nationally—and converting the deduction into a credit, allowing an additional 15 million low and moderate income homeowners to get a much-needed tax break."

Trump has been talking about limiting mortgage interest deduction to 100k. Fact of the matter is, this will mostly affect the wealthy.