All Forum Posts by: Justin Vincent

Matt, you are the man. Thanks for the timely info. I had an agent telling me otherwise, so I'll have to revisit that discussion. I technically did change jobs and now travel much less. I still reside in columbus however. I could make a claim that it is an excusable circumstance. But stinks to know that they have the power to decide.

Definitely right that its not worth risking it. If they called the loan due I would be in a sticky situation.

- JV

I currently have an FHA OO loan on a duplex. My equity position is 4% of the original appraised value. I have forced some equity into the home, but not enough to be at a 20% equity position.

Additionally, I have not lived there a full year.

My question is whether or not it is possible to secure a 5% conventional OO loan on another property prior to the 1 year mark for property #1? Another BP community member commented that you can have as many as 10 OO loans, but what about prior to the 1 year mark?

I'm confident I can qualify for the 5% down OO loan on properties I've been looking at. Will lenders require proof that I'm moving out? Will my current lender object to my moving out or require some statement of intent from me?

thanks,
JV

@MattDevincenzo - That is excellent information. Don't you have to live in them for a full year though as an owner occupant? I plan to convert the current FHA OO loan to rental before the one year mark. Sounds like I need to study more before I go for property #3. What must you do to convert them to NOO? (Aside from finding a tenant and moving out.)

Thanks for the welcomes everyone.

I realize now that I have used this site for some time but never post. I figure if I plan to get involved in this on a more serious level its best to start contributing my thoughts and learning from the feedback.

SO... I'm a 27 year old recent graduate in the Columbus Ohio area. I closed on my first duplex (3.5% FHA) in June and am now looking to establish a 5% conventional loan for property #2, also owner occupied. My hope is to refinance property #1 into an investment loan by end of summer 2014. My approach is to do anything REI related within my means, skillsets, and curiosities.

I have looked at flipping condos so I can build more cash flow without 20% investment products.
I looked at 2 acres in a desirable part of town that had one acre that could be developed.
I keep looking at MFHs, and recently have looked into SFHs.
I'm not afraid of electrical (minus the breaker box), plumbing, drywall, and fixtures/finishes. I think I will have a decent chunk of forced appreciation in property #1 come the time for refi through a number of the above.

What advice might you have for someone trying to go the owner occupied route to investing? I know I'm limited with the number of properties I can hold, but I am afraid of making the leap to full time RE investor. My career pays me well, is enjoyable, and all debt is tied up in a car and property.

Anybody in Columbus looking to network? I am happy to provide lunch and jokes for knowledge and opinions.

Thanks BP,
- JV

Hey Christian,

I'm a young guy in the Columbus area looking to get this real estate thing started as well. I bought my first property on an owner occupied 3.5% FHA loan back in June. Its a duplex with both units in a 2/1 layout. My mortgage is paid for by tenant and roommate, and I have a residence at the same time. If you are risk averse, this is the best way to start out without getting in over your head. (Property #2 is on the horizon!)

I started by reading books. I have always been interested in real estate, and started looking in October 2012. It took me 6 months before I could pull the trigger on a property. I can definitely relate to your paralysis by analysis mentality.

If you're interested, I would happily connect for lunch. If you're really serious I would be willing to share some financials and what seems to be working for me. If we both get going in this industry best if only one of us makes the mistakes that we both can learn from. (I also have a some contacts if you need help, a great real estate agent who is on the columbus board of realtors.)

At the end of the day, I would suggest attempting to calculate the risk. Make sure you use a pro forma that you can understand and know exactly what could go wrong. If all that happens, Murphy might stay away. Best of luck buddy, welcome to the game!

- JV

Message me if you're interested in meeting up.

Simon

Thank you for your reply. I have since purchased my first property (owner occupied duplex.) I'm having a good time rehabbing internal finishes, some minor plumbing and electrical, and have been living mortgage free with a tenant and roommate. I look forward to using the forum more frequently as I pursue property number 2.

Hope all is well with you!

- JV

Hey there Bigger Pockets community,

I'm looking to get into real estate investing. I have a buyer's agent and have been pre-approved through my lender. My goal with real estate is to build wealth, and have no living expense all while doing part time property management. [Long term goal is to have 7-figure equity to leverage within 8 years. Very specific and measurable ;) ]

My strategy starts with a multi-family owner occupancy. My agent and I are going to a couple walk throughs tomorrow. However, a property just came up that meets my ideal criteria (pricing, 4-2bdr/1ba units, campus area ie: Less vacancy). This property is listed as contingent upon lien release. I have assumed this means short sale, is that accurate? Would buying a short sale be possible for a first time buyer? Does this seem like too much risk for my first time buy?

I have an automated pro forma that calculates direct expenses (PITI) and indirect expense estimations (10% Maintenance, 10% vacancy). Based on this and $600/unit which matches campus demand, the property will cash flow really well, a product of short sale and unit demand on campus.

(I want the cash flow so I can start getting more properties that can support that 7-figure equity leverage goal. My strategy will eventual turn to higher valued properties that may produce less income, but are safer and accumulate equity faster.)

This is my first time posting on the site, I apologize for any ignorance in what may seem like common questions or what may be redundant on the forum.

Thank you for your insights,
JV