All Forum Posts by: Seth Teel

Welcome.  Happy investing.

@Doug Farmer The property does not have to be vacant, but yes you have a short amount of time to get moved in (60 - 90 days). You could buy a leased duplex and keep one tenant and vacate the other depending on their lease structures or you can buy a tenant out of their lease (usually doesn't cost much). I have only purchased vacant duplexes for my personal investments, but several of y clients have purchase fully leased properties and then moved into them. I don't advocate skirting the law, but FHA isn't check to make sure you are fully moved into the unit in the specified amount of time. If you move in is a few days off I don't see this as an issue (it's more about intention).

One issue I have run into has been buying a distressed duplex that would not meet FHA guidelines without improvements. In my specific case I was buying a HUD foreclosure and 2 days after I put it under contract someone stole all of the copper pipes and the HVAC coils. HUD would not replace the copper nor would they offer a discount because they had multiple offers. In this case I was allowed to use a "repair escrow," close on the property, and had to complete repairs and have a HUD rep inspect prior to moving in. Essentially I closed and repaired, but did not take possession until repairs were completed. Keep in min HUD will only allow a certain amount of "repair escrow" in this case it was around $5K in repairs.

@Bryan Byrnes 

When I first started (while I was still in college) I bought a duplex using an FHA loan. I lived in one side and rented out the other. After a couple years and earning a little more money I was able to repeat the process with another duplex... and so on. Under FHA you only need to put down 3.5%. Granted you have to reside in the property yourself, but it's a great way to build net worth, earn passive income, and live rent-free (or close). FHA will allow you to buy up to a 4-plex, which means you may be able to produce good cash flow with low out of pocket. This may not be the strategy you were looking for but it worked for me over the last decade and allowed me to pay off a duplex, leave corporate america and invest in real estate full time. Hope this helps.

Got your email.  Will respond shortly.

-Seth

@Lucas Bonasio 

Yes, that would be cumbersome.  I thought your mailings were more targeted.  Listsource, yellow letters, and a few others offer the kind of database mining you are looking for.  You may want to search the forums to get reviews of the best services.

You can use the Bexar County Appraisal District website: http://www.bcad.org/.  Click "Property Search" from the menu, then query the home vis property address.  Usually the owner's mailing address can be found (see below).  These are not 100% accurate - for example, I don't live at the address below yet, as the property is still under renovation.  

There is also plenty of other good pedigree info and taxing info to be found on the BCAD site.

Here are some of the ones I attend regularly.  There are a few invite only smaller groups as well.  Hope this helps.

San Antonio Real Estate Investment Association
http://www.sareia.com/

Alamo Real Estate Investors Association
http://alamoreia.org/

Real Estate Investment Association - San Antonio
http://sanantoniorenc.com/

SA Cash Buyers - Thirsty Thursdays
http://sacashbuyers.com/

14,000sf Estate in Shavano Park, 78231:
North Central San Antonio, Texas.

4 Bedrooms
3 Full Bathrooms

2 Half Bathrooms
3+ Car Garage
Approx. 14,000 sq. ft.
6+ acre lot.
1995 - Build

Priced Around $2 Million
ARV: $3.5 Million (Brokers Price Opinion (BPO) from multiple brokers).

*** CLICK HERE FOR PICS ***

Contact Seth Teel for more details: 210-628-9373, [email protected]

@Deanna Daily 

 Good luck. Hope you get it!

As long as the changes are up to code the appraiser and/or home inspector for the back-end sale should not have an issue with the added square footage.  It is very common for homes in San Antonio to have converted garages or additions that weren't permitted or recorded with the Bexar County Appraisal District (BCAD).  Most homeowners aren't quick to report the added square footage as it will increase their annual tax obligation.   Since you are going to be flipping the house, the added SF should be seen as a bonus and their the tax burden will fall on the new owner.  That being said, without a BCAD audit, the county may never know there is more square footage.  Fortunately for selling purposes the appraiser will have the actual measurement in his/her report.