All Forum Posts by: Jason A.

Hi Dexter - 

Congrats on taking the initiative! 

First off, what is the hurry with "end of next month" ? Finding the right property takes time ... don't rush it unless you have a compelling reason to do so. Buy the wrong place and you'll pay dearly - this is a delicate process. 

With respect to financing ... some options are: (1) hold off until you have sufficient cash for 20% down; (2) "House Hack" by living in one unit (obviously this does't satisfy the SFR you're currently looking at) and utilizing an FHA insured mortgage ... this will allow you to put down 3.5% to 5% or so. You're only obligated to occupy for 12 months; (3) find a partner/ investor to assist you with the down payment.

Just some ideas ... my preference is (1) and (2). 

All the best 

Hey everyone,

I am under contract on a multi and targeting a close by end of month. All my prior purchases have been new construction – this is a 40 year old property – so thought I’d ask if anyone had thoughts or suggestions.

This is owner occupied … someone suggested I have my lender communicate to the appraiser which unit I plan to live in (because it is one of the lower renting units).

Also, how do you think about appraisals … I see both negative and positive aspects if the property comes in under contract price.

Thanks for any thoughts. 

Hi all, I am working to purchase a property and found that an OO FHA mortgage best suits my needs.

I have an accepted offer on a multi but have run into a snag … one of the tenants is delayed in moving out of the unit I’ll occupy. They’re very cooperative and working to secure a new place, but it could be another month.

In the meantime, everyone is getting restless as we’ve delayed the financing until a unit is vacant. It is a real pain (plus rates have shot up … oh well, my bad luck).

Anyway, my question is this: will OO financing be approved even if the units are occupied at the time of appraisal?

My lender suggested I simply have the tenants sign a letter stating they’re moving out by a particular date; others warned me that a fully occupied property will be rejected by the appraiser.

It would be so much easier if we could just move forward with financing in the meantime – appreciate any thoughts or feedback from firsthand experience.

PS – property is in Connecticut.

I would most definitely speak with an asset protection attorney with experience specifically in RE before doing anything.

structuring entities across different properties and states, with different ownership interests is very complex. 

structuring for protection also extends beyond entities to your books ... for example, I believe separate checking accounts are suggested for each property. 

use of other entities, such as C-corps and land trusts can also make sense (there are instances where LLCs don't provide any real protection). 

last thought is you want to ensure your lender is capable of lending to the entities you may use ... I think most portfolio lenders are usually OK but worth exploring in advance. 

@Michael Noto - Hey Michael, do you recommend testing for lead paint when purchasing pre-1978? I ask because I was told that "no one" does it. 

This is specific to Connecticut to the extent it matters. 

Thanks. 

welcome @Andrew Cosker - what is your strategy to deliver competitive wholesale deals to the marketplace? Cheers. 

you can uncover attractive opportunities, but on a macro level it is not a great place to be; price appreciation and taxes could easily move against us over coming years. 

I think of it like this - the stock market could be in a down trend, but there are still names that will hold their own if you do the work. 

You have to be able to add value in a CT property due to its proximity... if you can't / don't wish to be hands on ... then why not invest in more attractive markets in other parts of the country. that's the test. can your active involvement in the property overcome the macro headwinds. 

http://www.wsj.com/podcasts/the-best-markets-to-buy-single-family-rentals/A9F8539B-6F79-4497-AE04-50FE65685653.html

http://www.realtytrac.com/news/home-prices-and-sales/q3-2016-single-family-rental-market-report/ 

hey @Pat McCandless - i compared prices and the report for the most part (some explained the report would be done during the inspection, others go back to their office and type it up). Also, tried to get a feel for the quality of the work based on how long each inspector said they'd be at the ppty. 

I am doing a radon test (came highly recommend by a few trusted sources). 

If you want to shoot me an email we can connect tomorrow - I can explain more of the process I went through. 

I'm having a multi inspected today ... I'll let you know how it goes and will forward his contact if worthwhile. I called 5/6 inspectors last week so just went through the research process. 

Thanks, @Alex Deacon