All Forum Posts by: Jim D.

I've rented to many students, and in general they have made for fantastic renters (your mileage may vary). My experience is that it's far better to find a group of 3 wanting to move in together than to recruit 3 separate individuals. It makes for low turnover--and when they do have someone move out, the other ones find their own replacement because they want to choose who lives with them. I've had about 1% vacancy for several years now doing this, and haven't even had to post a listing. Put the utilities in their name.

If you just pick random people for each room, you're probably going to have high turnover.

The only problem with that statement is that it's not true. If the going market price for a home in a certain area is $150,000 and market rent is $1,500 a month, then you have a profit margin. Of course, you would have a better profit if you bought under market value, but just because you bought something at retail price does not necessarily make it a poor investment. 

Anyway, to the OP: if you can share what your mortgage payment is, and what the home would rent for, the folks here could give you a lot better answer to your question.

Why would you say that without even knowing how much her house can rent for? 

Are these repairs that you specifically requested the sellers to complete before close? If so, I can see why they are hesitant to invest a lot of money in repairs without a very firm commitment from you. But if you were to back out, they would have the increased value from making the repairs. Also recommend deferring to your agent, but I don't see a reason to release the money.

I have seen this happen many times and don't see anything wrong with it. Most tenants will be understanding if you explain that you had 100 applicants and believe you underpriced the rent.

Just make sure to do it early on, probably not after you've received applications so it doesn't feel like a bait and switch.

Blazing good deal. Way to go!

When my wife and I buy, we only have one person on the loan and deed, so that we can each qualify for 10 Fannie/Freddy loans as Jerry mentioned above. If you're both on the loan, then it counts as one for each of you.

I'm not sure whether the deed matters for this purpose--anyone know?

Hi Jam, I house hacked multiple houses. Mine were single family houses, and I used 5% down conventional loans. (I negotiated for the sellers to pay up-front PMI so I didn't have that). However, if you're doing multi-family, conventional will require at least 20% down (unless you qualify for the HomePossible program). Here are answers for your questions:

1. I've heard of someone buying an FHA multi-family as a primary residence that needs work. They move in and rehab while they live there. Then they refinance into a conventional loan at 75-80% LTV, freeing them up to purchase a second property with an FHA loan. It's not easy to force that much equity in a short time--you would either need to buy at a great discount, do rehab, or put extra money towards to the principle to get to the point where you can refinance out. Not easy, but possible.

2. Best thing I ever did. Great way to build a portfolio quickly with limited capital. I was paying for my wife's medical school costs, and just couldn't save up for 20% down at the time. If I had waited to save 20% down, I would have just last year purchased my first property. Instead I have well over $1M in my portfolio.

3. Yes.

4. Sung got it right for tax benefits.

Should be on public record on the county website.

All of these terms seem reasonable to me. He may be a reasonable guy just wanting basic protections in writing. However, my experience is that around two-thirds of people who demand contract modifications for basic services like this are often a PITA and keep trying to milk you for more and more as time goes on.