All Forum Posts by: Juan Abreu

@Jaysen Medhurst Sorry, here is what I used for my analysis.

Hey guys, 

I'm looking at this triplex that looks like a good deal (for a rental property) but not really sure if I am overlooking anything. The asking price is 350,000 for a triplex with 3 units. 2 units have 2 bedrooms, and 1 unit has 3 bedrooms. Each of the 2 unit bedrooms is rented out for $1000 each and the 3 bd is rented for $1500 so producing a total of $3500. This meets the 1% which is good for Houston in my opinion, and also seems to meet the 50% rule.

It is not in the best area but it is really close to a couple of universities and 5 minutes from downtown so I think there is a lot of potentials for tenants. I have also checked and it is not in a flood zone.

One thing that stood out to me was that the house is appraised by the County Tax office at $406K buy it's selling for $350K. Should this raise any red flags?

Please take a look at the analysis below and feel free to let me know anything that i might be overlooking or did wrong.

Thanks!

@Ralph R. I'm just trying to figure out all the different options and implications by asking the pros. Thanks for your input

@Sean Barnett Thanks man! I lived in the Heights for some time, I really like that area. Yes, let's connect. I'm no pro so not sure how useful my insights will be but i'm always happy to share ideas and point of views

@Jonathan Taylor I understand, I would only have one primary residence at once. 

@Julie Dillon Yes, from my military service. That's good to know, I've read about it but never met anyone who has done it. Glad to hear it is possible, thanks!

@Ralph R.

That's a great point! I was just thinking about it from the point of making my capital go longer but yes, finding those rentals that cashflow at 5% might be difficult

@Nathan Gesner @Dmitriy Fomichenko Thank you for the warm welcome!

@Anthony Trollope  My plan after a year is to rent this one out and get another property with an owner-occupied loan to take advantage of the low down payment and then live in that one for the required time until i can do it again. I didn't want to go for a fixer-upper on the first one but will definitely get into rehabbing the next one once i get a hang of being a landlord and understand the rehab costs better. 

Right now I'm in North side village, which is east of the Heights. What about you? What do you have going on around Houston?

@Ned Carey @Chris Mason

Thanks so much for the reply, that's exactly what I wanted to know. And is this something that is frowned upon by lenders or is it okay for me to tell my lender that this is what I intend on doing?

@Account Closed

My goal is to buy and hold these properties long-term and rent them out, so not really concerned about that but thanks for the info.

@Mark Sewell

I spoke to my VA loan officer a couple of weeks ago and he said I could not use my VA loan to build a multifamily, only a SFR. He also said you can't use to add units, it has to be for a home built from zero.

Hi all,

I'm new to BP and recently purchased an owner-occupied home. It is my understanding that I have to live in the house for one year before I can rent out the whole house. My question then is:

After the year is up, can I go and buy another owner-occupied home for a low down-payment? If so, how many times can I do that before I absolutely have to use a rental property loan? Has anyone done this and how did it workout? And are there any downsides to this?

I have found some older posts about this but kind of general, would be great if anything with first-hand experience could share.

Thank you for the help!

Juan