All Forum Posts by: Account Closed

Mine was just a standard FHA loan and has far as I know there are not different names for properties between 1-4 units. The underwriting process my change slightly with the consideration of the extra rental income, so that my help with the amount of loan you are able to get. But as far as the type of loan it really is just a standard FHA loan that you are looking for.

That should work great for you then. Good luck! 

For my answer I'm assuming you are the buyer. With an exsting mortgage you may want to see if the seller will do a lease option. There are many different ways that a lease option can be structured but basically you are leasing the property from the seller for a specified period of time (5 years). Paying a agreed apon fee during this time and having the option to purchase the property at the end of the lease. The lease fees may or may not be credited to the purchase price depending on your agreement. There are risks for both sides and for you the renter one being if the seller defaults on their mortgage payments you may end up with no option at all. 

This is one possible option since having an existing mortgage makes seller financing a bit more complicated. This option helps to avoid some of the legal work/implications. 

This is how I purchased my first invetment property. It was a four plex and I had one unit and rent the other three out. As Ashley stated above the only requirement was 3.5% down and proper DTI ratio. I was not required to have a renter in place and maybe this was becasue of my DTI, but that never came up doing the loan process at all. I don't know of any reason other than DTI ratio that a renter in place would be required but I could be wrong about that.

I advise all of my clients to purchase a rental propety this way if they are in a position to do so, as it is very effective way to start out with much less capital than the traditional method. 

If you are looking for an already made app that works well at tracking miliage and helping you classify business and pesonal use, MileIQ is what I use. Works really well and simple to use. You can just leave it turned on and it will track all of your drives and whenver you go back into the app you can easily classify all the drives and it trackes monetary value for tax purposes too. 

Seems like you have developed a very similar system yourself and this is just an app that does basically the same thing. 

Antonio, Welcome to DFW and as others have mentioned this is a great place to launch the real estate investing career. I also wanted to lend a helping hand if you need another one. I help investors find and purchase propoerties in the DFW area, I'm a Realtor and work stricly with investors. Be prepared to make offers quickly if you find a property still on the market that interests you, or to explore the off market property options. The MLS listings, if they are worth anything, don't stick around very long.

Again if you are looking for another person to show you around I would be happy to help. Either way good luck and I hope you find the one. 

Kevin 

Thank you for the response. There is a little less than $100K left on the existing mortgage. 

Another option I was thinking about was rent-to-own. Basically have a 5 year lease, paying him monthly, structured like in my initial post but avoiding any issues with the existing mortgage. If that was something they were interested in. 

I have an off market deal that came my way and need some advice on possible ways to finance/structure this deal. The property is a 4 plex and I actually own the 4 plex next to it, so I know it is a good property/area and I have already been able to increase rents significantly in my property so I know I could do the same with this one. 

My issue is that I do not have the capital for a conventional down payment, so I asked the owner if they would be open to owner financing. The owner currently has a mortgage on the property, what would be the best way in Texas to structure owner financing with an existing mortgage? 

The owner is looking to sell the property for $180K, current gross income is $2400. I offered the owner $190-200K, 3.5% interest with 5 year balloon payment.  

If the owner is uncomfortable with owner financing and structuring it with an existing mortgage what are other ways that I could finance this deal to make it happen?

If I were to raise money how could I structure it, (LLC, LLP) that would be cost effective and make sense. Is that even the right way to do it? Not sure what would be best in regards to raising money.

Any other advice on ways to make this deal happen please let me know. 

Thank you

 Not if it's a multi unit property that doesn't have individual shut offs for each unit. 

Dana - So the washer leak immediately made me start thinking about where other water leaks could come from and what I could do to minimize damage. I realize that when there is a large amount of water in a short amount of time, e.g. pipe bust, washer overflowing a sensor can't help to minimize the immediate damage. In this case a sensor would be useful if the property was vacant to alert you there was a problem, even if it was a sudden large leak, so you could minimize damage as much as possible and not let the water continue to flow out. There will still be a good amount of damage but this situation could be minimized in vacant properties with the sensor. With water and water that is not dried up quickly mold will most likely follow and that can become a big problem itself. 

So I see the value of these sensor that alert you on your phone for a vacant property in helping to minimize damage. If you have multiple properties hopefully they are not vacant all at one time so you could move the sensors between properties as they become vacant and reoccupied. Thats one strategy. 

I would definitely just go with the much less expensive sensors when a property is occupied. These will help with the slow leaks that a tenant might not notice right away but will hear the alarm.