All Forum Posts by: Evan Manship

All,

My uncle was recently thinking of selling one of his properties in a thriving market in Indianapolis. Instead of taking the normal route, I convinced him to sell it to me on contract.  We are still working out terms.

A question I have is this:

If he is to sell it to me on contract, how to those taxes work for him? Is the income he receives from my payment taxable a normal income? Do I claim the house on my taxes though I don't have the deed in my name yet?

Hey BP,

I placed an offer on a short sale property on Tuesday afternoon that was accepted Wednesday morning by the selling party. I am now awaiting approval from the bank on the price.

Ask Price - $95,000

Offer - $90,000

The lending institution is a very small bank that holds their own notes in house. My thought is to approach the bank and attempt to utilize their services so that I can have some more negotiating power to work out the best deal for both parties. The best possible scenario is to assume the mortgage of the previous borrower with zero money down. My realtor sounds optimistic about working something out with the lender but I don't want to count my chickens.

Anyone have experience with tricky short sale solutions like this?

I am currently in the market for a 4-unit building for which I would like to utilize an FHA 203k loan to pump equity into my property while I can lease out three of the units and live in the fourth.

I am excited about the ability to build value into my property but I am not thrilled about the additional mortgage insurance (PMI) payments.

My question is - so long that I satisfy the LTV and underwriting criteria of my lender, how soon after repairs are completed on my FHA property could I refinance into a conventional (or other) loan product? I am not wanting a cash out refinance. Only want to get away from the PMI and other red tape that FHA entails.

What other speed bumps may I run into?

Hi Ron.

I am an aspiring investor in Indianapolis. Involved in the east side. Find me on LinkedIn and let's chat.

[email protected]

(317) 804-1616

Hey BP,

I wanted to take a collective poll as to who has had experience and what the community has heard regarding Fannie Mae's HomeStyle renovation mortgage product -- not to be confused with the HomePath renovation product which is being discontinued next month.

From what I have read, the HomeStyle loan does not require owner occupancy and costs of renovations can be tied into the purchase price. There is no discrimination between owner-occupants and investors while acquisition of the property is possible with as little as 85% LTV. There is PMI involved and many hoops to jump through similar to the FHA 203k, but with no restrictions for investors this seems like a great idea for beginners like myself.

I am curious to hear what the BP family has to say about experiences or hearsay about Fannie Mae Homestyle.

Cheers,

Evan

Great read. This has been an internal struggle for me for a long time. Like the saying goes,

"If it ain't broke, don't fix it"

Hi BP,

I am an entry-level investor looking to get into my first property. I want to purchase a multi-family property - 2-4 units with preference toward a 4-unit property. I want to utilize one of two options:

1. Purchase a multi-family property with FHA 203k financing and lease out three of the four units while occupying the fourth.

2. Purchase a multi-family property via tax sale. I can afford to wait up to another year or so before I HAVE to be out of my parents house. Obviously the shorter the time the better, but if I can get a good property at tax sale I would love to do it.

My only question is, if I purchase a property at tax sale and it needs renovations, what are my options as a newbie to finance renovations? Am I pretty much on my own at that point or can I utilize home renovation loans?

Thanks in advance.

Well, my thought is that those who conduct said inspections would be much more suspiscious if all 4 units of a 4-plex I buy are leased (obviously not owner occupied).

A friend of mine will be doing the same thing, and he and I are wanting to stay in the same place hence my idea that if I don't lease it out, utilities are in my name, etc., would I technically be breaking any rules?

Hey BP,

First time poster, long time reader. I am currently living with my parents but am considering purchasing my first home using FHA financing.I understand that FHA requires "owner occupancy" for at least one year, but the question I have is:

Can I use FHA financing to acquire a property while still living at home? I am thinking of buying a 4-plex, but instead of renting out the 4th unit that should be mine, it will be vacant.

How can I utilize this loan product while living at home?

All info and tips are appreciated in advance.

Thanks to all!