All Forum Posts by: Jose D.

Thanks for the replies, guys. Good to know I wouldn't be doing anything illegal.

After doing some research, the one thing that kind of has me stumped is home insurance. I don't think traditional, owner occupant home insurance would work for me. I also don't think landlord insurance would work since it would still be my primary residence. Does the Airbnb Host Protection Insurance have me covered? Says they provide a $1 million coverage for liability. Also, I'm having trouble finding rates for them or how to go about signing up for it. Is that just something that is automatically included in Airbnb fees when you host through them?

So my GF owns the current house we stay in. Browsing realtor, I notice that a house over on the next street has come on the market. 

I don't have the 20-25% down payment to buy it as an investment property but I start wondering...what if I move into it as an owner occupant? The plan would be for both of us to regularly spend time at both houses. Spend the night at her house sometimes, others at mine. I would also like to airbnb this new house from time to time to help with my mortgage. It will already be furnished and I will be at the GF's house some nights anyways so might as well try to make some use of it. San Antonio is Military City USA, and I'm not too far from Lackland AFB, so I was thinking of airbnb'ing it out to families of airmen that are graduating BMT.

Would this be considered mortgage fraud? I'd like to think that it's creative rather than illegal. The loan wouldn't be FHA if that matters. I got a decent rate from one of the online brokers, and I will be putting down a 10% down payment by choice. It wouldn't be your typical 3.5% owner occupant FHA down payment.

@Heather H. That area is pretty rough the closer you get to Little Red Barn Steakhouse. C- to D imo. It's a little better the closer you get to Clark Ave. Probably a C.

Is it possible the comps were closer to Clark Ave and your rental is closer to Little Red Barn?

Thanks for your helpful reply.

Question, is your "PM" also your local expert so to speak? Like does he provide any advice on what blocks in that zip might be slightly better (C- as opposed to D)? Or is that knowledge something you've gained with experience and also handle yourself?

If you're willing to share his info, I'd be interested in getting in touch with your PM. I dont mind doing most of the legwork. Would just need a little guidance and help with showings, etc.

Practically everything I've read says this zip code is a war zone and to steer clear of it. But I'm eager to get into the game, and these type of neighborhoods are the easiest (financially) for me to get into. 

Any one have any success using Section 8 in this zip code? Any reputable property management companies that work in these areas and have success? I'm out of state. I'm concerned that tenants with vouchers go to nicer B or C class neighborhoods.

@Ross Denman

I know what you mean with the documentation issues. I've known friends and acquaintances with "fake" SSNs and green cards. They have to live somewhere though, so it makes me wonder if the landlords that are providing housing for them are (illegally) turning a blind eye?  

Anyways, that was a lot of great info. Thanks for taking the time.

@Josh C.

Hopefully this doesn't come off as politically incorrect but is there a zip code/neighborhood in Indy that is known for being Mexican? I know in general the Hispanic population is pretty low but I'm guessing most of them are concentrated in one area. 

I'm Mexican myself, bilingual, my parents don't speak English and having been around this population my whole life...I've noticed that they may not reside in the nicest areas but non-English speaking Mexicans are super reliable tenants that don't want to stir things up. I recall Felipe Mejia on the BP Podcast #329 basically saying the same thing. Who knows maybe that opens up another neighborhood for me that most others steer clear from.

@Josh C. It's in Martinsville. 

What's your thoughts on the area? Do you think it's too far south from downtown Indy? 

@Alexander Felice As far as location goes, I did do some quick research on it. The BP community considers it a C Class neighborhood, ~$36k median income.

Agree with your general point though. Definitely came away feeling that if it was as good of a deal as it seems at first glance someone would've snatched it up by now. It's been on the market for over a month.

What would be the best way to dig deeper on the property? I was thinking of contacting a local property management company to see if they're willing to share information about the area. 

So, I went to see a local multifamily property yesterday. The numbers looked great, affordable enough for me to get into the game, everything seemed perfect...turns out it is run by a slumlord and needs way too much work. The tenants were actually super nice, humble people but you can tell the owner is taking advantage of them. 

Anyways, I've turned my sights to out of state. For the same price range of the local duplex I visited yesterday, I've seen much nicer properties in the Midwest. The things is, I feel like I'm missing something because in 45-60 mins of quick research after work and just looking through Zillow and Realtor...I found a property in the Indianapolis area that is within my price range, tenanted on yearly leases, exceeds the 2% rule, and looks to be in good shape. The neighborhood is C class comprised of solid, blue collar people according to the BP community.

Am I missing something? Are deals really this good and easy to come across in the Midwest or is it almost certain that an inspection will reveal major problems? All I hear is "there are still good deals out there in this market, you just have to put in the work to find them" but this literally took almost no effort.