All Forum Posts by: Ian R.

Patrick Ng What area is your house located in? How big is it and what are you asking for rent? We're heading into PCS season so if it hasn't rented yet, it should rent soon as long as you're in a good school district and reasonably convenient to your base.

@Matthew Greco I think it would really depend on the merits of the deal in question as well as your long term goals. If you can find a deal that cash flows with only 3.5% down, then I would say go for it. The less cash you have to tie up in order to secure a deal, the better. However, it would have to be a pretty phenomenal deal to cash flow with that little equity but if you find one, good on you. Also keep in mind that with FHA loans, you will have to owner-occupy. If you're house-hacking and want to use the FHA loan for another property later on, you will have to refinance the first property (most likely into a conventional loan).

To address the OP's original question, the benefits with going with a 20% conventional loan versus a 3.5% FHA loan would be (1) not having to pay PMI (2) having an advantage when making offers on deals since sellers typically prefer conventional loan offers as opposes to FHA. But again, it would really depend on the merits of the deal in question.

@Rustin Dowd

Assuming that the property is in a good/desirable area and in good condition, I would definitely keep it as a buy and hold rental.  Then, as a couple others mentioned, I would pull some of the equity after the seasoning period and parlay those funds into your next 2-3 deals.  You really have a smokin' hot deal on your hands here...congrats!  This one deal could quicky advance you into a nice little portfolio.

I'm also curious how you came across this.  Not looking for specifics or to steal your "secret sauce". Just genuinely curious.  Was it from your own direct marketing?

@Matthew Greco

@Dan Mackin is correct. It depends on how much you put down. You can view the current FHA guidelines at the link below. But basically, if you put only 3.5% down, you're going to be paying mortgage insurance for the life of the loan.

https://portal.hud.gov/hudportal/documents/huddoc?...

@Kevin Branin

I believe @Bill S. brought up a critical point.  You need to review the current lease agreements ASAP. If it's a long term agreement (not a Month to Month), that lease survives the sale of the property and the new owner is bound to honor that lease.  In the event that this is in fact the situation, you may be able to offer "cash for keys" to get the tenant to agree to leave.

Best of luck

"Because cats consume a high protein diet (causing a very concentrated urea in their urine) it's typically one of the most difficult odors to remove."

"Male cats can spray up to about 2 1/2 or 3 feet up."

- Reasons #101 and #102 why I'm a dog person lol.

Kassie Carrell Keep in mind that you're also reaping the benefits of building equity by having your tenants pay down the mortgage every month. And you're also enjoying the tax benefits. Actually, an SFR with an ARV of $120k that rents for $1300 sounds like a solid deal. I'd take that any day.

If you truly care about your friend, you'll refer him to a good realtor that can get him full market value for his home. If he's getting divorced and has a 5 bedroom house, that means he has a couple kids. He's going to need every dollar that he can possibly get out of that house. Schertz is a popular area, especially for military families based at Randolph and Ft Sam and we're just getting into the busy season for military moves here in SA. He should have no problem selling his home on the MLS (barring any major defects). If you need contact info for a great realtor, I'm happy to provide. Just PM me.

Troy Gonzalez I highly recommend Tim Macy . He's an AF veteran and he's an agent that's specializes in working with investors. He knows the local market very well and can definitely help you find a property that meets your goals.

I would spend a month here...