All Forum Posts by: Michael Flood

Hi all, over the course of the next 6 months (hopefully much sooner) I am looking to buy a personal SFH and a MFH (preferably 4-plex but will pursue anything where the math makes sense). I am leaning towards buying the MFH first and my tentative plan is below. Seeking any advice you're willing to give and am also looking to confirm that what I am proposing is legal.

1) Use FHA to buy a duplex/4-plex with a vacant unit that would conservatively break even or cash flow positive with the minimum down payment and have the 1 vacant unit that needs work.

-I currently live in an apartment with a great rate. If I use the FHA to buy a MFH, would I need to break my lease and physically live in the currently vacant unit of the MFH? Or do I just need to not be profiting off of the vacant unit, technically speaking? There are a few MFH on the market with a vacant unit needing work, so my thought process would be to continue living in my current apartment while updating the vacant unit and using for storage until I could legally lease the last unit. I don't intend to actually live in the unit
-If this approach was viable, how long until I could legally rent out the vacant unit?

-The other approach would hinge upon finding a good SFH deal first and using a conventional loan. I assume then there is no way to make the FHA loan work after buying a SFH with conventional, correct? Disregard my current lease for this scenario.

Thanks in advance for any guidance.

@William Blue

Hello All, Any suggestions for a lender in Dallas are much appreciated. We would be cosigning or putting under an LLC and looking for combination of best rates / smallest down payment possible.

Thanks

Hello, @William Blue and I are in arm's reach of making our first rental property purchase. We believe we will have more buying power if we cosigned as individuals rather than get a mortgage under the new LLC's name. Is this a generally accurate statement?

What is the best way to maximize buying power, reduce interest, and protect ourselves?

Thanks in advance!

Hello all,  @William Blue and I are close to being ready to purchase our first buy and hold in DFW.  I have spent the last several hours reading through posts similar to this on asking for if there are any ways around the 20% down rule for rental properties.  Has anything changed since interest rates have dropped?  

-We have access to VA and FHA loans (not sure that this matters)

-Neither of us currently own a property 

-we'd be looking at a single family or duplex

-we don't plan to owner occupy

Any other advice would be much appreciated - Whether to use a realtor, easy ways to save, etc.

Thanks and apologies in advance for the noob questions.

Hello everyone,

@William Blue and I have few questions and hoping to get some help.

1.) If 2 people cosign on a 200k mortgage, do both people carry the full amount in their debt to income ratio? Or does each person carry half?

2.) At what point to banks recognize rental income as income? I understand this likely varies from bank to bank.  Is there a general rule of thumb for planning purposes?

3.) Will purchasing a rental home with a partner later prevent each partner from purchasing a personal home with an FHA loan?

4.) Any tips around the timing of buying a rental property and taking a loan for school would also be much appreciated.

Thank you and apologies in advance for the noob questions

Hello everyone,

A few follow up rookie questions:

1.) unrelated to the VA loan, if 2 people cosign on a 200k mortgage, do both people carry the full amount in their debt to income ratio? Or do they carry half of it?

2.) at what point to banks recognize rental income as income?  I understand this likely varies from bank to bank.

Thank you everyone for the responses!  Please keep them coming!

@Caleb Heimsoth yes that is the plan but not going to force anything.. what are your thoughts on Dallas market?

Hello everyone, I am looking for a mentor that is interested in helping a 29 and 30 yr old.

Unfortunately there is no financial incentive at this point but we are both reasonably well connected in DFW and SD/SF, California...

Essentially looking for someone that wants to help people and pass on the knowledge that others have passed on to them.

Both of us have graduate business degrees (not sure that’s worth much in real estate)... and both of us are in technology And one of us is former Marine officer.

Appreciate anyone that may be interested in connecting!

Hey everyone,

New to bigger pockets and excited to be here. I am a 27 year old DFW native and haven't ever left due to the metroplex being such a good place to be.  I am at the point where I feel I am in the financial position to start moving forward with some investment properties and hope my knowledge of the area will help me at some point.

Please feel free to share anything you feel may be helpful to a noob.  I am especially interested in local networking events. 

In my spare time I enjoy basketball and am actively involved in the community.

Thanks,

Mike