All Forum Posts by: Edgar Perez

Hey BP,

I am looking into purchasing a $170,000 duplex using an FHA loan and house hacking. The duplex is a bank foreclosed REO and I think the asking price is about where the home is valued at. It is located in a nicer part of town, each unit has 3 bed 1.5 bath located on a corner lot. There is not a lot of work that needs to be done to the home, it had to undergo mold remediation but that part is done. Aside from some dry wall, minor flooring and kitchen update the place is solid.

I am pre-approved for the FHA so that is not a problem, my concern is on the Refi. Ideally I would like to cash out refi after a year to get rid of the PMI on the loan and pull out some cash but I am not sure how a refi works.

What do they base the refi off of?  

---I have excellent credit, and a decent savings (after the first year I estimate around 20k in savings) my W2 job brings in 3k a month gross and I think I can get a min rent of 1100 from one side of the rental, estimated monthly mortgage payment under FHA would be about $1000 (not including taxes and property insurance). Any info would be much appreciated. Thanks BP

Hello everyone, who out there has any experience with Studio apartment rentals? I am looking into a 4 unit building 2 1br and 2 studios. The studios are about 500 sqft with separation between main room and kitchen and bath (not just one big open space). Any info regarding ease of renting, tenant type, turnover and any additional info. Thanks

@Michael Kretch I am born and raised here in Kenosha, I am also excited about the potential here; what type of investments are you looking to make, flip, buy and hold, SFH MFH other?

@Joshua Hollandsworth thanks for the reply what your friend is doing is really interesting to me, but it sounds like it is kind of "unofficial," which may just be the way this type of property operates.  I guess I was thinking more along the lines of finding an agency or something that has experience with these types of homes and to my understanding they provide the staff to manage the residents and the property.

I know this population can be difficult to work with and yea the neighbors I'm sure are not too fond of these homes.  Luckily in my area there are opportunities, at least I believe, where this can be successful.  My city is located between Chicago and Milwaukee (about an hour to each city) and even though my city is pretty suburban, about 20-30 min west from me there are plenty of big old homes on large plots of land, towns that have population of 10,000 or less compared to about 100,000 where I live in the city.

Thanks again for the info, I am definitely going to try and find out more about this topic.

@Ham Merritt Well this idea is something I am considering for a future investment.  Normally these homes start out as large single family or maybe even duplex.  Then (at least to my understanding) you find an agency that wishes to use it as one of the aforementioned categories and they use it find the individuals to place there and they also act as a "property manager."  So I guess I could consider it as an investment but if the property was a duplex I could house hack for a year and then pursue this strategy.  Not sure if this helps, I don't know much about this rei niche 

@Jason Ireland welcome to the area, saying hey from Kenosha

@Rebecca Knox I am interested in hearing about investment opportunities in the Racine/Kenosha area.  

Good day everyone,

Hoping to find out more about investing in a halfway house/sober living house/shelter care house.  I work in the social services field and have become aware of these types of places and am wanting to learn more about them from the investors perspective.  Has anyone had any experience with these types of properties and have any tips, stories, advice about this niche.  I live in south eastern Wisconsin (Kenosha) which is on the boarder located about an hour from both Milwaukee and Chicago.  Thanks people.

@Joshua Hollandsworth I know you said it was a friend that invested in the sober home, how did they find information about doing that.  I have heard of doing this before or even a halfway house for people getting out of prison being integrated into the community.  Really interested.

@John Campbell  I wonder if you would be able to buy out the squatters; like cash for keys strategy, go in tell them you will give them X amount of money to leave and be done with it before having to get other agencies involved.

Hello BP,

I am interested in purchasing an REO Duplex property that is being offered to first time home buyers first. I am looking to partner with a family member (dad) on the deal and am wondering if we both put our names on the deed, do both of us have to live on the property to be considered owner occupied. In my scenario I would live there and manage the duplex while my dad would be more hands off.

Additionally, my dad typically purchases his properties through his llc; would we still be able to partner using this method?

Thanks all.