All Forum Posts by: Kelly Williams

Can anyone give me some insight on home owners insurance for owner occupied duplexes or triplexes?  How do insurance companies view these types of properties?  Is it similar to a single family property?  I would love to hear from anyone with experience.  Thanks in advance.

I am looking at a multifamily property to purchase. I am interested in an FHA multifamily loan. The property I am looking at is a single family home with a separate carriage house that is divided into a duplex. It is 3 unitis total in 2 buildings. I recall seeing that to an FHA multifamily must be one building. Is this true? Does anyone have experience with this?

   I have a lender and am in talks with him as far as the loan goes.  I just found this property today and he is looking into it as well.  

The property I am interested in is above the FHA loan limit of about $650,000. Also, it is three separate structures. One duplex and two single family homes on one piece of property. I believe the FHA loan stipulates it must be one structure. I cant come up with 20% for a down payment, so I may be out of luck. Hopefully a lender can give me some ideas.

Jesse 

    Thanks for the response.  You said I would have to show a "track record" of performance.  Would this be the property itself?  It does have a track record of rentals for multiple years.  Would the seller provide this to me so then I could show the lender?  Would me not having experience as a landlord affect this?  Would my income be taken into consideration as well?

    I will be talking with some lenders, I just wanted to have a knowledge base before I spoke with them.

I am interested in purchasing a multi family unit.  The property has 4 units, and I am wanting to live in one, and rent the others out.  I know this is a common strategy, but my question is regarding financing.  I cannot qualify for a conventional loan for the price of this property.  I also cannot put 20% down.  Seeing as how it will be my primary residence, will a bank give a standard loan taking into consideration rent from the other units? 

I realize what I'm complaining about isn't major, however the price point that I'm renting at shouldn't have discovered walls, much less broken light fixtures and blinds. Anyway, thanks for your input.

hello

I moved across the country this weekend. I rented a place off craigslist last month. My lease started at the beginning of June. I'm in a college town so the rental market is tight so we wanted to find a place before we moved here. Anyway, I signed a lease sight unseen. The owners bought the home for their daughter while she was in college. Now they can't sell it and are unintentional landlords. They are very kind people and I'm sure mean well. They left us a bottle of wine and some beer in the fridge as a move in gift.

Here is the problem. The house is dirty. Not disgusting by any means, but not clean. There are also many things in the house that are broken. Most of the blinds are broken, lots of light bulbs burnt out, the locks and keys don't seem to all work together. Lastly, the interior paint job is a joke. Someone tried to do a touch up but the color is way off. The color around the trim is way off from the walls. Also there are tons of holes from mails hanging art from the precious tenants.

So my question is what do I do? We like the house. Yes I signed a lease aight unseen. What I these issues are the landlord required to fix if any? We want to stay and would make great tenants. Is it unreasonable to ask tejme to repair everything? What about splitting the cost for us to fix all of it? Any ideas? Thanks in advance.

I have read a few posts about taking out home equity loans for a new down payment but I cant seem to wrap my head around it. I am moving out of my current home. Its value is about $300,000. I owe $200,000 on a 30 yr note at 3.6%. I have been planning on turning the house into a rental when I move. The house will cash flow (yes I have run all of the numbers). However I do not have the cash to purchase a new home yet.

So my question is, should I just sell, take the proceeds and buy 2 new properties? Or should I get a home equity loan on the 1st house to purchase the second? How does that work? Could I borrow the difference of 80% of the value and what I currently owe ($40,000). I like the idea of keeping the current property due to the very low interest rate, as apposed to getting an investment loan for a new property.

Thanks in advance for any help.

Hey. Thanks for the info. I agree with the family member concerns.

Hello

I am looking into options for purchasing a commercial property from a family member. It is a small commercial property (under $500k). The family member owns the property outright. My sister and I are looking into going into this investment together. We do not have the funds to put a substantial down payment down, however, the family member is willing to sell the property to us at roughly 50% of the market value. If the family member is willing, should we look into seller financing? I should also mention that we do not have commercial real estate experience.

Yes this is a close family member and the sale would essentially be a gift of sorts hence the low sale price. Any input would be much appreciated.