All Forum Posts by: Kristin Smith

I was in the process of purchasing a REO, had conventional financing but was in the process of switching it to a FNMA Homestyle loan due to the appraisal calling for repairs before closing. Then my lender contacts me and says all renovation loans are suspended due to Covid-19! Now I'm up a creek- Since I'm not allowed to do repairs before closing, my lender has canceled the conventional loan. Anyone else running into this right now?

@Paris Williford

This may come too late to help you, but yes, HomePath does still offer renovation loans. It’s called the HomeStyle loan. I was preapproved for one last week on a HomePath property, but decided to shift to conventional financing to strengthen my offer.

Thank you all! I will be reaching out to several people as well as two agents that my lender recommended, to see who will be a good fit for my investment goals. It’s so nice to meet good people here on BP, with word of mouth recommendations

Any units you rent out will need to be managed. Are you planning to manage the tenants yourself I assume? Many people do that at first when starting small. If that’s the case, decide how many units you are comfortable managing with your schedule and consider how you will meet any needs they may have (such as midnight property emergencies like heat going out, plumbing leaks, etc), and find some maintenance and repair people that you trust to handle the big things you cannot do yourself. That should help you decide how much you want to tackle at once. With the concept of “scale of economy”, the more units you can get with this multi family dwelling, the better. Instead of 5 separate houses with 5 roofs to maintain, etc, you only worry about one roof over everyone. And so on... Starting out with a three or four plex should be doable for you, albeit somewhat harder to find than single homes or duplexes. If you’re motivated, go for a small apartment building!  You will qualify for a higher amount of financing if it is considered a commercial property (even though you will live there) because the lender will take into account the income you would receive from the other units, so don’t be afraid to look in a higher price range for bigger multifamily properties.  Living in the unit yourself will keep your down payment requirement much lower.  
Many investors say that they wished they had started right out with a multi family property, the bigger the better. More units = more cash flow under one roof. 
You have an excellent plan, happy hunting!

Aside from the regular MLS such as Realtor.com, here are some options:

HomePath.com for REO listings,

Auction.com (properties listed there are sometimes eligible for conventional financing), 

Xome Auctions, 

LoopNet (perhaps not the greatest resource but look anyway), 

Hubzu although it can be (tedious and confusing), 

also check your city or county website for auction properties ( a very few may be eligible for conventional financing), 

HUD Homestore (another tedious process but worth checking)

ForSaleByOwner.com (search your area, not all properties listed are on the MLS)

4SaleByOwner.com (ditto)

Craigslist Toledo OH, real estate for sale by owner listings (beware scams, but sometimes good things show up)

Facebook Marketplace for Toledo Ohio, there is a real estate section

Local bulletin boards- post a free ad saying what you are looking for

Bigger Pockets Marketplace!

Look up and contact wholesalers in your desired area to see if they have anything that meets your criteria (many are here on Bigger Pockets to connect with)

If you are prepared to go further in your search, you can direct-mail the owners of any multi-family properties you see that you take interest in, to see if they may want to sell. Sometimes even if they don't, they know someone else who does!  There are resources here on BP for how to do that, getting address lists, etc.  

Guys, what have I left out??

If you are looking for a quick flip, a property that only qualifies for a 203k loan may not be for you. All FHA loans require you to live in the home as your primary residence for one year minimum. If you can do that, its a great option.

You'll need to figure out what you want and narrow down your intentions. Read about the different types of RE investing and see which type appeals to you. Buy & hold, flip or wholesale? Multifamily? House hack or BRRRR? Commercial?

Set solid goals for what you want to achieve with your investments.  In the meantime, save up cash, address anything in your credit report to maximize your credit rating, and begin networking and researching in the areas you wish to invest in.  Listen to the Bigger Pockets podcasts and attend a couple webinars to get started.  Best wishes

Hey all- seeking recommendations for an agent/broker in Chattanooga,TN for a HomePath/FannieMae purchase. Is there a good way to search for agents with specific REO experience? I can't seem to find any with this particular experience listed unless I just don't know the correct way to look. As a side note, I'll also need contractor recommendations for same purchase. I welcome any and all recommendations of any kind for the Chattanooga area...

Thank you!

@Dawn P. Those sliders are fantastic! Did you stain them a little or just put a clear coat on the wood? Love the skills!

@Steven Taylor I have the same question. How do you find the marketplace? I can’t find it on the BP app, is it only on the full site?