All Forum Posts by: Albert Bui

@Alexander Small can you get FHA on fourplex sure but FHA SS rule to meet and assuming you have enough income to qualify, min 3.5% down, and 3 months reserves PITIA in checking/savings as well.

Will rental income help you qualify, yes some of it, 3 units X 75% = net rental income. Will it help you qualify the entire price chances are, no. Is it possible to use only rental income to qualify while living there in the 4th unit, unlikely, but sure anything is possible just improbable. 

Can you get a gift on FHA yes.

@Matthew Kwan offset rents? there are no offsetting rents matt on an owner occupied property fourplex, sure if he moves out then he can use all 4 units to offset the PITIA or monthly payment but thats assuming hes gone and no longer living there. Hes trying to house hack a fourplex aka he'll be owner occupying this 4 plex and we've discussed subject property rental income already. The calculation is different if you're living there versus not living there.

@Carlos Valencia

 Do Elaborate for him matt at how you arrive at 45-50%, and 45-50% of what? 

and how does this number or payment equate to a maximum loan amount, just because we know this stuff intuitively doesnt mean the BP public space does.... 

 I like those construction tips on passing framing it sounds like you've been at a few city inspections for framing prior.

The idea about spray painting where things will go ahead of time with respect to electrical (color coding it), plumbing, and kitchen is pretty forward thinking vs making the inspector try to visualize where everything will eventually go and whether you pass or not.

@Matthew Kwan

@Carlos Valencia

HOA CC&R's are deed restrictions/rules that can dictact how you can use your property so Id read CC&R's better or have an attorney go over those specifical accessory dwelling structures verbiage with you and then discuss with the county officials after.

HOA's will supersede state laws meaning prior HOA's supposedly will have precedence but going forward state laws passed will prevail, like HB1337 if passed. Many investors are hopeful for HB 1337 and HB 1110. LFG.

These are leading the way because in CA we have HB9 which is the pinnacle of development for SFR lots being recharacterized for high density expanding its use. However in most places in CA I have not seen the ability to condoize your ADU's like in seattle proper and kirkland so its an interesting time to see seattle spearhead these efforts. Typically CA was the the tip of the spear prior.

@Matthew Kwan

@Carlos Valencia

 Sure Angelique Tinney is the president of REAPS you can check out www.reapsweb.com or @Angelique Tinney

For Real estate at work is www.meetup.com/realestateatwor... which is our local joint meetup. This month we're doing a panel on creative financing and how to acquire multi-family with out banks.

@Matthew Kwan

@Carlos Valencia

Getting a permit will give you legitimacy, value from sales point of view, use of rental income even while living there or to the new buyer/owner, once added it will be written into your title report so anyone looking will know they have defined space that is approved as an ADU on the title.

I've seen big banks assess a payment on a zero balance HELOC. Before union bank stopped wholesale they assessed even zero balance heloc's as 240 months 20 year fixed at the prevailing 30 year rate which was a huge hit, but fannie/freddie/conventiona/VA is still doing the min payment or zero if the HELOC is zero balance.

@Reid McCutcheon So the answer is generally no unless you're seeking a portfolio product or bank based product then yes they will assess you with a phantom payment or "hit," based on some etheral formula they have interally because they're scared to death you'll go out and max it all out  (is the vibe I get from bank products).

@Matthew Kwan

@Carlos Valencia

 No harm other than tying up capital you Cant get back out yeah thats a “harm,” but yes depending on your view of your money/capital and what it could be doing for you. 

 This is true Ed!

Alot of my standard operating procedures and tactics were just from networking at meetups with other investors or fix/flippers and Incorporate a lot of those know how's and materials into my investing. Overtime its hard to pinpoint exactly which tip or update is attributable to the success but its definitely had its additive effect over time. 

These days I share them with my clients that are in the day to day house hacking or investing game unknowingly. This helps ensure a higher level of success for them during the crucial beginning stages of the investing game where having the first few bases and hits are the most important because it starts the journey off with a "bang."

@Matthew Kwan

@Carlos Valencia

@Kin Meng Sio