All Forum Posts by: Monica Davies

I know on the podcast, they say if one person brings all money and the other does all the work, 50/50 is a good split, and I'm good with that. Can I get a few more details on how people have specifically structured that? What happens when repairs go over budget? How are we both legally covered and protected? I'd like to have an attorney involved, but what should I tell them I need for a fair contract? I'd be putting up the labor for this deal. 

Hi guys!

I own a 4 plex and a duplex, and am working on, in Brandon's words, building my "stack" and trying to get an 8-plex. I came across a seller, who was interested in seller financing his 8-plex and the numbers look good.

I was ready to go under contract, but he is now unsure. He wants to serve a church mission and leave for 2 years, which is why he wanted to sell. But now, he wants to hold and have a property management company run it for 2 years while he is gone, then come back and 1031 exchange it into a large home for himself, to avoid the significant capital gains.

Is there a way this deal can work for both of us? What about a lease option? I've never done one before.

@Jennifer Pauyo

Agent/investor here! It makes me happy to see so many remarkable ladies here! You go girls!

When/where is your next meet-up?

I'm wanting to house hack, but I have a little family, so I need my own space, and the multi-family in my area are too expensive to cash flow right now.

I'm thinking of getting a single family home, with a mother in law apartment with a separate entrance, living in the basement, but eventually renting it to two families as an unofficial duplex.

Are there any cons to this, other than paying by own utilities?

I'm wanting to house hack, but I have a little family, so I need my own space, and the multi-family in my area are too expensive to cash flow right now.

I'm thinking of getting a single family home, with a mother in law apartment with a separate entrance, living in the basement, but eventually renting it to two families as an unofficial duplex.

Are there any cons to this, other than paying by own utilities?

I was just told no by my lender on a 4-plex because it doesn't meet the "self-sufficiency" test for a FHA loan. Apparently, 3/4ths of the rents need to pay the mortgage.

I think this is a great rule, to protect people from making bad investments. But I know that it I could have a few months owning the property, I could put update the units and get it cashflowing.

Pretty sure my seller won't want to seller finance. Any other ideas for getting approved?

Thanks guys!

@Sheila Campbell

That means you qualify for a VA loan if you're willing to house hack for a minute, right? 1% down is a lot easier to come up with, and I hear the rates are better. I'm no expert though.

I'm selling my 4-plex in Utah, and should net about $120k that I want to reinvest out of state where the margins make better sense. I was thinking maybe Pittsburgh or Orlando.

Do you think it's better to (1) BRRRR little run down homes so I can reinvest the capital more quickly, or (2) use the money as a down payment for a 10-plex for a little more convenience?

Either way, I want to try investing out of state.

I just discovered the fine print on owning my property in an LLC... you can't do a cash out re-fi through FHA. At least in my state. I have about 20% equity - about $110,000 in my 4 Plex, which I have in an FHA loan. But I can't figure out a way to access it to invest in more property. Lenders are telling me I'd need to put the property back in my name for a year before I could do a cash out re-fi. I could switch to a conventional loan, but then I don't have any cash to pull. My final thought was a HELOC, but so far I've had a hard time getting banks to lend because I don't have enough equity. Thoughts?