All Forum Posts by: Joseph Villasenor

Hello all, I was discussing a possible investment strategy and would be looking for some critiques or insight from anyone who has done this before.

My wife and I only have our primary residence as of the writing of this post. What we want to do is rent our house we have now and use the rental income (lender says only 75% is eligible to use of rental income). Refinance this home from an FHA to conventional and go house shopping again and use the FHA.

I know for house hacking when using an FHA you have to stay at your primary residence for 1 year. Wife and I are only a few months away from our 1 year mark at our current residence. So in essence the plan looks like this from a high level assuming we have met the 1 year mark.

Find qualified renter (screening, credit checks, DD etc. etc)

Have them sign rental agreement for a 12 month lease and move in date for them would be let’s say for example June.

Provide the signed lease to bank so they can use 75% of rental income towards our purchasing power. Plan to use an FHA loan for low entry point.

Locate another house get that house under contract

Move our stuff from our first house into our new house.

Get first house ready for tenant

Tenant is moved into our old.

Wife and I stay at new place for at least 1 year then repeat the process.

Again this is a very high level view for this strategy and a lot of these steps are easier said than done. I just want to know if this is feasible and if anyone who has gone on a similar journey to possibly provide some insight or caveats. Thanks!

Hello all, my wife and I purchased our first home back in May 2020. We weren't thinking of real estate investing at the time but when we closed on the home we did it through FHA. Recently we have heard about house hacking and to my understanding if we refinance as conventional we can begin our journey into house hacking.

A few questions came to my mind. I believe that FHA requires you to use the property as a primary residence for 1 year; would this still apply to me if I am doing a refinance?

If I have the option to refinance and get out of FHA and begin looking for a home should I proceed now or simply wait until May 2021?

If this was our second house hack is the process "waiting until we hit a year, refinance our FHA to a conventional and start the house hunting"? Or do I NOT need to refinance and simply after a year I just get my FHA eligibility back?

If I do need to refinance as Conventional, is there a specific type of conventional loan I need to do or do I simply choose the one with the best rate (don't want to break any rules)?

Thanks everyone!

@Cody Neumann thanks for the response, that is what I figured. Just wanted to make sure!

Hey all, I was just curious of when running a rental calculator if PMI is factored in to the equation when putting anything lower than 20% on the property? I do not see a field listed for it. Thanks!

@Brad Hammond thanks for the response. Yea that is what I am pretty much doing. Glad to know I am on the right track

Hello all, I am curious if there is a particular formula for renting out a home? For instance thinking of listing my fully furnished home for rent on sites like Airbnb etc.

The shortest lease agreement I am willing to do is 1 month. However I want to be flexible and allow month to month, 3 month, 6 month and obviously 12 months.

Looking at the area and running some numbers I think I could pull $4500 a month, $4200 for 3 months, $4000 for 6 months and $3500 for 12 months. While still being competitive.

I wasn’t sure if there was a particular formula to properly calculate how much rent should increase/decrease depending on the length of the stay? Thoughts and opinions on this approach, anything I seem to be missing, oversights, tips, tricks? Thanks in advance!

Hello all, I know bigger pockets has a rental calculator as well as Airbnb calculator. Just curious if there was another tool out there that you recommend to compare rates for fully furnished rentals?

Besides using the Airbnb Calculator. I just went to Airbnb and looked what other where renting for from now until January 2022 (that’s as far Airbnb will let me go). Want to make sure I am being realistic while being competitive that still provides me a decent cash flow. Thanks!

Hello all, curious if any investors are vetted in the Austin housing market and some general insight to their approach?