All Forum Posts by: Luis Jarquin

Good evening BP,

I think I found a solid deal to house hack a property. This property checks off a lot of what I'm looking for but ran into something I hadn't encountered.  What has been your experience with a property with a Retainer Wall?

Here's some context:

I'm looking at a property that I would put some work into and attract high quality tenants (such as a small family) on the two upper levels while I live in the basement that has a separate walkout.  Originally, the property had a deck but was removed as a tree in the backyard was growing too much. I'm not sure why the original owners didn't just remove the tree instead?  If I decide to purchase the property, I would remove the tree to open up the backyard and lay out flagstone in the backyard and improve its overall appearance. 

Now, the backyard is enclosed by a retainer wall. I don't see any water damage in or around the backyard area but I didn't want to find myself in a bad position if an investment property like this is not a good idea? My understanding is that the HOA is responsible for maintaining the retainer wall, but I wouldn't want to be out of luck should a snow storm or heavy rain damage break it down.

My Real Estate Agent is assuring me that this isn't a problem as it's been professionally installed and the other neighbors have been living with the same retainer wall too.

What has your experience been with a retainer wall? Do you recommend what I should need to ask or investigate further on?

Thank you in advance!!

Thanks so much for the quick response, BP!

@Account Closed

Good evening BP,

I'm excited to launch my REI opportunity by soon purchasing my first property! I plan on House Hacking a single family home in the D.C., Maryland, Virginia (DMV) area.

I'm seeking guidance on whether this house-hack is something viable and if there were any resources you could point me towards?

Loans

I shopped around with several lenders and had a great experience with two in particular. Both of them were confirming the similar results for my particular situation. Despite this being my first property, a Conventional Loan would make more sense than an FHA. My monthly mortgage would be much less on a Conventional and I can pay off the property more quickly than with an FHA.

According to my lender, I qualify for a certain dollar amount BUT the advice I've heard elsewhere is to not pay monthly mortgage more than 25 - 30% of my take home monthly pay. When I run my own numbers, I think I should be seeking for a property for less than what I qualify for. But with a house-hack, perhaps the more expensive Single Family Home (SFH) can work.

Property

I plan on working with my realtor to locate a SFH with a walkout basement whereby I live in the basement and my tenants fill rent upstairs. If my property is in the more expensive range and in great shape, appealing to the eye and marketed well, I think I'd be able to attract high quality tenants that could cover the expensive monthly mortgage.

Questions/Feedback

What do you think about the my loan qualification discrepancy?

What would you think is the best approach:

• Rent upstairs to a family
• Rent upstairs with individuals

Appreciate your guidance and pointing me in the right direction, BP!  

I look forward to hearing from you.