All Forum Posts by: David Lasky

HI Pockets community,

I was just reading that FHA mortgages are assumable with bank approval. I would love to do this with a a multifamily property in Los Angeles, CA. Is there anything that I need to look out for? Does the property still have to pass the viability requirement for 3 and 4 units. I'm just starting this journey so assume I know nothing.

 Thanks for the help. 

David

What horror stories do you have in this market?

I'm very new to this whole renovation process. I have helped my family with a couple SFR remodels and worked in HVAC during collage. But this is my first time going it alone particularly in Southern California. Any advice would be appreciated.

I'm in the market for a small multi family in Los Angeles. Many of the properties in my price range could use some updating. 

To any contractors/ handy men working in the Los Angles area. What problems do you run into in California 3-4 unit multifamily buildings built in the 1940s-1950s. 

Can anyone comment on the permitting requirements to put in new kitchens, bathrooms, flooring and paint on 1-2 bedroom apartments?  I have heard that California can ask for certain things to be fixed when you do a remodel. What should I look out for when purchasing houses of this era. Are there any building elements that I should stay away from? Steel/Aluminum Pipes, Aluminum wires ect? How common are these issues?

Thanks for all your insights. 

David

What horror stories do you have in this market?

I'm very new to this whole renovation process. I have helped my family with a couple SFR remodels. But this is my first time going it alone particularly in Southern California. Any advice would be appreciated.

I'm in the market for a small multi family in Los Angeles. Many of the properties in my price range could use some updating. 

To any contractors/ handy men working in the Los Angles area. What problems do you run into in California 3-4 unit multifamily buildings built in the 1940s-1950s. 

Can anyone comment on the permitting requirements to put in new kitchens, bathrooms, flooring and paint on 1-2 bedroom apartments?  I have heard that California can ask for certain things to be fixed when you do a remodel. What should I look out when purchasing houses of this era. Are there any building elements that I should stay away from? Steel/Aluminum Pipes, Aluminum wires ect? How common are these issues?

Thanks for all of the great replies. 

On the self sufficiency requirement. Am in correct to understand that the the mortgage (PITI+PMI) must be no more than 75% of the pro forma rents or does it change from lender to lender? That sounds like live in one and let your 3 renters pay your mortgage. That is my goal. If only it was that easy.

What do I typically have to show the lender to back up my claim of pro forma rents? Do I need leases in hand or can I use neighborhood comp?

This question is for all the lenders out there please let me know if this plan holds water. 

I'm a first time home buyer. My goal is to buy a small 3-4 unit multifamily property in Los Angeles by the end of the year. We want to find a property that can cover our housing expenses. My company will be relocating me back to LA and I am tired of renting. If everything works out I'll be able to put 10% down from savings on a $1M property by years end. I would like to try to avoid PMI if possible. My brokerage is offering a Securities Backed Line of Credit (SBLOC). They can lend me the other 10% at a floating 8.5% interest only line of credit. I would then try to fix up the units and pay off the SBLOC as fast as possible. If this scheme can be pulled off I will still have about 6 months of expenses saved up for whatever surprises might be in store.

My main questions are:

Will the SBLOC affect my ability to qualify for a loan? I was told that the SBLOC does not show up on a credit check. 

The stocks would have to drop 65% before a margin call. Is that safe enough?

Is there a product that could roll renovation costs into the loan so I could have a little cushion to improve the property?

Should I go FHA or conventional for this plan?

Thanks for your thoughts. I'm looking forward to hearing your opinions in the comments. 

-David

@Michael Dumler, @Latasha Griffin, 

Thanks for the info. I am still renting in California. Or should I say I am subletting my place in CA out to someone else. The Atlanta residence would be my first home purchase. However I do not want to give up my CA residency since I make more as a distant hire than a local hire. I guess my question is can I claim CA residency and have a FHA mortgage on a Georgia home?

HI Everyone, 

I am a new investor. My work has taken me away from my home state of California where I was hired out of. I am working in Atlanta and thinking about using an FHA loan to purchase a 4 plex in Atlanta. I need to continue to use my CA address on my W2 for taxation purposes. Can anyone think of a reason that I would be unable to get an FHA loan on a Georgia property that I am occupying if I need to continue to use my CA address on my w2?