All Forum Posts by: Jelani Fearon

@Kyle Keller Great question, I was talking to my partner and she was saying they do it all of the time in that area no problem. I think the only issue is not being able to use a lease because if we do use a lease, but it’s illegal, the lease would be void in the court of law is what I assume.

@Matt Leber That’s a great question, when I called the zoning department they just flat out told me that renting by the room is illegal. They did not specify if it was the amount of unrelated people, or if it was just flat out illegal, I gotta find that out.

So me and my partner are closing on a single family home that we thought we could rent out by the room but I called the zoning department and they said it’s virtually illegal.

This home was financed with an FHA loan as we planned to house hack it as well.

The property is located in Paterson, NJ.

Are there any other solutions in this situation?

Wow that’s crazy. I definitely will reach out to you for more insight as we move along in the process

Thanks for the insight Paul, I greatly appreciate it.  

Hello everyone,

I’m looking forward to securing my first property this year and as a thought experiment I’ve been thinking of creative ways to finance properties, and I wanted a second opinion. What do you think of these scenarios?

1. Getting pre-approved for a 203k loan to finance the property, but then taking out a personal loan in order to pay contractors up front and using the rehab budget to pay back the personal loan OR pay the personal loan back after refinancing and getting cash back when the home appraises for more.

2. Cash only property that needs major work: Is it common to ask a hard money lender to secure a property + rehab? If that’s not possible, what about getting a hard money lender to get a property under contract and then taking out a personal loan to finance the rehab?

These were some questions I had and would like to know if the forum has any educated opinions or insight on these above scenarios.

@Noah Chappell Wow super informative man

@Emanuel Ohunwu I’m gonna google a Bank of America Loan Officer right now. Thank you!

@Jarod Dudley So informative. Thank you.

@Guy Leroy No one in my family is in the economic position to do so or willing to take that risk unfortunately.