All Forum Posts by: Rich Ramirez

Another question -- what if one was to sell the property before the 12 months are up? What happens? A pre-pay? A fine? No longer being able to qualify for an FHA? Fraud? I mean what are the real repercussions?

I'm in Southern CA and realize, based on the Podcasts, that the 2% rule can still be found in the Midwest or perhaps FL. Since the market has picked back up, I'm wondering if it still exists...generally? Or have other investors fought for such properties tooth and nail that the prices have gone up in such metros..effectively driving the 2% rule to more like a 1-1.5% gross monthly return. If it indeed exists, does one always have to uncover a distressed situation to acquire such a property? Or are we talking a standard MLS discovery? Inquiring minds want to know. I would also love to network with agents that can assist my wife and I with such investment property.

BTW, units and SFRs out here are around 0.5-.07% gross monthly return. Maybe even less. It's just ridiculous!

-Rich

Thank you both!

* should NOT have title transferred multiple times (rehab)

Hi BP Community: I'm pretty sure I'm understand correctly -- if one was to purchase a home with an FHA loan, there's a 12 month minimum to hold on to that property. However, if one was to sell one's property to an FHA buyer, there's a 90-day window the property should have title transferred multiple times. I know it's a long run on question, but I hope it makes sense. :) Hoping I'm wrong with the 12-month retention. Thanks, Rich