All Forum Posts by: Joe Pearson

So, I'm planning on purchasing a duplex or triplex within Manchester, NH, but my fiancee and I can only afford an FHA Loan 3.5% down and 4.85% interest, 30 yr mortgage, and that will leave us with practically no reserves and we can only afford the home if we have renters.

True, technically we could cash advance our credit cards, pull from retirement funds (Roth IRA, 401k and mutual funds), but we really really don't want to.

I apologize for not poking around on the forums enough to answer this question myself, I tried for a few hours but couldn't find an answer with enough similarity or that could help out enough (I am absolutely sure there is, I just wasn't looking in the right places).

Assuming we find a duplex/triplex that looks absolutely perfect to 2 general home inspectors and it comes with 1 vacancy (for us) and the rest rented with leases and they are perfect tenants. Would the risk still be with it? Would the juice be worth the squeeze?

For reference, my long term goal is to be a buy and hold landlord with small multi-families (probably under 4 units), so I would keep this property.

Thank you!

-Joe

@Tucker McCarthy, Also, are those rehabs or turnkey?

@Russell Brazil, When you say cash flow do you mean like $300 per door? Exactly how much cash flow do you aim for?

With an FHA Loan and living in the building I'm thinking of cutting Vacancy by half because I'm living in it and removing Property Management because I am the owner and property manager.

@Tucker McCarthy, Have you done an FHA Loan and are getting cash flow?

Are you selling any of those? xD I'm trying to find one from the MLS listings - I need to branch out.

Thank you!!

-Joe

The insurance and tax quotes I got were for Manchester. Also, i posted my cash flow, it's negative =/

I'm looking to buy in Southern NH. I've shifted my focus from specifically Nashua or Manchester to everything but Nashua and Manchester. 

Is 230k rare for Milford? 

Thank you! 

-Joe

@Charlie MacPherson, Woah! I didn't mean to commit fraud, I was just thinking, if I wanted to purchase a multifamily and my father backed me and my name was on it and I was living in it... Would that be fraud? That's what I was thinking of when I said the above...

I'm working on purchasing my first home as a 2 or 3 unit multifamily in southern NH with an FHA Loan. Although, when you say rental investment do you mean that you won't live in there? Could you put the FHA Loan in someone else's name that will live there for a year?

-Joe

I understand. I intend on owner occupying for 1 to 4 years, pending on using HomeFlex Cash Assistance and any other life events. 

I'm calculating numbers for before and after owner occupy, both of which don't make much of any cash flow.

-Joe

@Ben Reeder, Welcome! I am similarly very new to real estate! I've been looking around for my first home as a duplex or triplex in southern NH, planning on using an FHA Loan and 3.5% down, and thinking about using the 2% or 3% HomeFlex Plus Cash Assistance program to help with closing costs, if needed, but it'll add a whole 2% to my interest.

I've heard that with the FHA 203k loan there's a lot of red tape and it's hard to get contractor(s) that are okay with being paid in full at the end if it passes inspection. Is this true for you and everyone else?

@Christopher Phillips Ah, that would make sense. 

Tho, still, 1.143% and -$99.33 seems a little low or unrealistic...