All Forum Posts by: William R.

This one better be a great deal! Make sure it is not asbestos siding, that would be costly to abate. You can put siding directly over older stuff, but its nice to know that the sheeting under it is not rotted out. If I were keeping the house would probably take it down, inspect the sheeting, put up house wrap then vinyl. I am using hardi plank siding on my current project; I like it a lot more than vinyl, but a bit more expensive. They can typically use existing ductwork, just make sure that you have adequate air returns (often an issue remodeling older places). The electric paneling can potentially be replaced, but you should be certain that It does not have knob and tube or aluminum wiring. If it did you would need to rewire the entire house. Good luck!

I like fixed rate mortgages. IO just. Feels risky to me. I just dont think I could mentally pay a mortgage every month and see the balance stay the same, but I am using the same strategy that Peter used (short term IO) rehabbing a 3plex currently. Plan to refinance and cash out 75% LTV and use that to purchase additional properties.

Great input! I’d also add that the fear of buying the property has never gone away for me. Every time I ask myself if I missed something big, or what if something goes wrong!? I think some anxiety is a good thing…keeps you on your toes and thinking sharp, but at the same time you have to trust you instinct and make it happen.
FHA owner occupied multifamily is a great way to start out with little cash down, and if you close early in the month you get a big check and don't have to pay your first mortgage payment for 2 months! You just have to find something that has one unoccupied unit as you only have 60 day to occupy the property.

Why are you so intrested in buying a property in a tenant friendly city? Being an owner in Louisville I believe it is fairly landlord friendly.

Eviction, not execution! Can't wait for the bigger pockets app to come out, so it's more user friendly on the phone!!

I think you would have to discuss the situation with your mortgage person. I know FHA has more regulations than conventional and that you have to sign a form that the property will be owner occupied within 60 day (at least that's what my FHA loan doc said). I had an execution in the works when I purchased and it ended up being a bit longer, but there was no knock on the door or phone call. But the document does state that you can be imposed fines or even foreclosure, so I wouldn't push the issue.

I think it is imperative to know that your co-signer is who they say they are. I ask for a drivers license. I have a lot of students, so require the form to be notarized if it is faxed or emailed. The notary will also require some form of identification.

I think I would go with your third option, considering the SFR is out of state. I like being able to drive by and see what's going on, but that's just me. I also think you can get much greater cash flow than your current $30/month. Leveraging up to a larger property is a way of producing greater cash flow, but also comes with more market fluctuation risk. I also believe interest rates will eventually be on the rise, so locking in a decent rate now may make since.
The least risk would be paying off the SFR. You would also be guaranteeing yourself positive cash flow.

Really looking forward to this!!

Best way to get started IMO. Any mortgage company or bank lender will be able to get you set up. I would talk to several.