All Forum Posts by: Steven Griffith

Hi @Ulrick Edmonds,

Raleigh has recently passed some pretty restrictive city ordinances on short term rentals, including AirBnB. I've included a link to the ordinance below. For me, I chatted with some local investors and ultimately decided against short term rentals here, although I know several others have had a large amount of success in Chapel Hill/Carrboro. The rules aren't as restrictive there as in Raleigh, or so I understand.

https://www.newsobserver.com/news/business/article230626659.html

@Josh R.

I know you asked for an RSVP by Monday - but just to check, the meet up is on the 11th? I didn't see the meeting date in the post, but maybe I just missed it. Thanks!

@Dennis Nikolaev

I second @Greg Dickerson. While I can't speak to the other states, I've found several what on the surface look like great cash flowing deals in Texas. Unfortunately when you factor in the incredibly high property tax, many of the deals I've looked at stop making sense. The last deal I analyzed looked great! Until I realized property tax aloneadded an extra 1000+/mo to my monthly expenses. Way more than I'd pay if I invested in the same size/style multifamily in North Carolina. I've never even looked in Florida for investing, so I have no insight there. Good luck!

@Jeff Sadosky

PenFed, as others have mentioned. Also specifically for Virginia - UVa Community Credit Union will do HELOCs on rentals.

@Chad Gray

Hi Chad,

Welcome! I'm an investor located in Chapel Hill, and I can tell you they're are a lot of great resources around the Triangle. Here are a couple recommendations:

1) Just drive around the area and look for those signs that say we buy houses, or cash for houses, Etc. Call the number, introduce yourself, and ask to be put on their distribution list for when they have properties available.

2) Join the Triangle Real Estate Investor Association. You can decide if you paid membership is worth it or not, but I have the free membership and I am quite happy. I get a daily E mail listing many new wholesale properties located all around both in and outside the triangle.

3) There is a monthly meet up around the triangle called Dealmakers, hosted by @Adam Schneider. It is a good networking opportunity, and a session lasting around an hour or so of wholesalers just pitching new properties they have the contract on.

4) There is a monthly bigger pockets meet up in Raleigh/Cary. I would recommend trying to attend to network. I have only been a few times myself, but have connected with several other investors and know of several properties that have been purchased or sold through this networking event.

If you would like to pm me your email, I can forward you the deal makers event invite and the TREIA email listing of wholesale properties. Welcome to BP!

Steve

@Mahmoud Y. Elhalawany

@Caleb Heimsoth had a similar issue and had to replace beams/support under his house in Rocky Mount due to sagging. Maybe he can chime in on what it cost, but depending on when the house was built, you may also have to bring the crawlspace up to code to do any work under the house, which can get expensive.

Hi @Cian R.,

Sorry for the delayed response - I didn't get a notification of your response above until now.  The three banks I've reached out to are:

1) UVa Community Credit Union (Virginia, my property was in Virginia)

2) Coastal Federal Credit Union (NC, a recommendation from a different thread)

3) Peoples Bank of NC (They would 'work with me')

Also of note, my rental at the time was in my name, not an LLC, so I don't know if these banks are able/willing to do a HELOC with an LLC, as per your last message.

Hi All,

I'd appreciate any insight from someone knowledgeable regarding timelines for turning a house-hacked primary home into a full investment property.

Here's the situation:

I have identified a duplex in which the numbers work great, and I have enough saved for 25% down, so I would qualify for a conventional loan and mortgage (great credit, low DTI, etc), and could purchase the property as an Investment Property with the associated higher interest rate. This has the benefit of letting me immediately start renting out both sides of the property (after cosmetic repairs).

Or I could purchase the duplex as a House Hack opportunity using an FHA loan with ~3.5%, down, receive a lower overall interest rate, and use the remaining funds to purchase an additional rental property, separate from the Duplex to increase the overall rental property portfolio. Unlike the first situation, the Duplex would become my Primary Residence (House Hack). I work 100% remotely, so could live anywhere without my employer caring.

I understand that doing something like this would really require the numbers to be spot on - and I get that (there's a huge difference in 3.5% down vs 25% down, PMI comes into play, etc). I'm still playing with the BP calculator to try and find the "sweet spot", if it exists. My question is separate from that, though.

The question I had was this: how long would I need to house hack the property (or in other words, have it as my Primary Residence) before I could turn it into a full time rental without risking the ire of the bank/loan holder if purchased with an FHA loan or a conventional loan?

I found one website that said, if using an FHA loan to purchase a property, you need to move in within 60 days and it needs to be your Primary Residence for at least 1 year. I found another spot where it mentioned only needing to live in the property for 6 months before moving out and turning it into a rental. Finally, I found one thread where someone was told by a realtor they needed to live in it for 5 years.

Help?

How long do you need to live in a property as your Primary Residence before you can convert it into an Investment Property?  Or does this differ by bank?  This property is in Virginia, if it matters at all.

Thank you!

Hi @Cian R.,

I was exploring this as an option for a deal I found, but wasn't quick enough and someone else snapped it up before I could find decent rates.  That was my fault for being too slow - lesson learned.

I ended up talking to 8-9 banks, though, and now have 3 banks tat will do a HELOC should I need it in the future. It's still an option for my next property, but as of yet I have not pursued/obtained a HELOC on my rental. If you're actively looking and the property is in Virginia, though, I would recommend reaching out to UVA Community Credit Union as a starting point.

@Britta A. I'll message you privately and we can set up a time to discuss!

In short, though - I have not et found a deal which makes sense in Fuquay.  I'd personally be more inclined to look in Garner or Clayton, since the 540 completion will connect those with the rest of the Triangle and prices are generally lower.  Like most things, though - if I could find a good deal in Fuquay - or better yet, Holly Springs/Apex, then I'd certainly pursue it.  just remember that property taxes in Wake County are SIGNIFICANTLY higher than Chatham county.