All Forum Posts by: Haydn Zeis

@Greg H. @Cora Kemp-Epps

@Cora Kemp-Epps

Greg, good call, thanks for clearing that up! Yes, you are only required to live in the home for 12 months as an owner occupant. You can only purchase a HUD home as an owner occupant every 24 months.

@Cora Kemp-Epps I'm happy to hear you put an offer in on an investment property!  Just keep negotiating with them and if they don't come down enough, know there are many other deals out there.  

Good question about HUD homes. There are different "listing periods" that last a certain number of days when a HUD home hits the market. First, HUD offers the home to only Nonprofits and Government Agencies (and sometimes the Good Neighbor Next Door program), this means, those are the only types of buyers allowed to purchase the home at that time. Then the listing period opens to said buyers, plus Owner Occupants (owner occupants have priority when bidding at this time). Finally, if there hasn't been an acceptable offer made during those two listing periods, the bidding will open to said bidders, plus investors. If you go to www.hudhomestore.com and check out some if their properties, the listing period will be clearly marked.

I had to live in the home for two years because I bid as an owner occupant, though I would have stayed in for two years regardless to avoid capital gains.  If you're bidding as an investor that rule won't apply to you.  

Hope this helps! Good Luck out there!

@Wendell De Guzman Thank you! 

You're right.  The house wouldn't work as a normal fix-n-flip; that thought had come to my mind a few times the past two years.  

@Neil Wilson I'm not familiar with your market so I wouldn't be the best person to help you. I suggest finding a REALTOR who is familiar with real estate investing and the HUD bidding process. You can start your search at www.hudhomestore.com

@Chuck McEvoy It wasn't an investment loan.  The house was my primary residence for two years.  I was able to secure the conventional loan because I was an owner occupant.  

@Luis Moreno.  Thanks Luis, I did most of the work myself.  When I did hire out, I hired qualified independent people I know from different trades; I was able to keep costs down this way.

@Tiffany S. Thanks!  I got the loan through a local community bank.  It's called State Bank and Trust in Columbus, Ohio.  5% down, in my opinion, is good if you're willing to pay the extra point in interest.  Since the loan amount was relatively low, the hit from the interest was more bearable. 10% on a larger loan is better because you're interest rate will be lower. 

@Robert Ellis Thanks man.  Actually, all the staging was done by my fiance`, we used our own furniture; she definitely has a good eye.

That's awesome to have a 60 day turn around; where in Columbus? Because this was an owner occupied HUD home, I was required to used the property as my primary residence for 2 years. Also, I wasn't in a position to pay capital gains. We're in a HOMEPATH house in Highland Lakes now. Their requirement for owner occupancy is only 1 year. Though, we're probably going to stay in it for 2-4 years.

@Account Closed Thanks!  I hope so too.  I see you're in Boynton Beach!  I'll be in your neck of the woods the first weekend in December visiting my Aunt in Pompano!  She owns some rentals throughout the area.

@Kenneth Hynes Thanks man!  I plan on expanding beyond flips for sure.  I currently am partnering on a 15 unit rehab in Marion, Ohio.  I'm working with my dad right now to start purchasing more buy and holds pretty aggressively over the next year.

To answer your question: I knew the wall in the living room was load bearing because it was technically considered an exterior wall; we built a header in that room to redistribute the weight. The kitchen wall ran parallel to the floor joists, which means it's probably not load bearing.  Though, to be sure, I had a licensed and trusted contractor take a look.  I'd suggest having a professional take a look before you start taking the walls down!