All Forum Posts by: Nhia Yang

Thank you so much! I wasn't aware USDA has a multifamily arm. 

Can you elaborate on adding 75% of rent to the income in consideration to FHA? I REALLY love your advice on leaving the fha loan in place until we have 20% so we don't have to pay PMI. What sort of records/papers would we typically be required to have for the rent in the other 3 units be considered as income? Did I need to have signed leases with an official move in date to prove they will be occupied, etc?

I hope this answers your question on property values, @Michael Henry but apologize if this info does not. The first property is a quad plex  (1br/1ba) for $110,000, located at 64 N College Ave, Tulsa, OK 74110

http://www.homes.com/property/64-n-college-ave-tul...

Second property is a 2br/2ba Duplex for $87,777, located at 1538-40 E 66th Court, Tulsa , OK 74136

http://www.homes.com/property/153840-e-66th-court-...

Thank you!

Thank you, Michael! I'm currently reading more on that mortgage interest deduction right now. We have a low household annual income of 38k. Appreciate your input very much!

Hi, I truly want to undertake REI with no intent of committing mortgage fraud --- but I want to understand more about FHA and USDA (still trying to build my credit and no investment property yet, with 10k allotted to invest). I've been looking at FHA and USDA, aware that you cannot own any other home when using USDA, and USDA cannot be used for an income-producing purpose (also has household income limits per household size but amounts vary per county). With FHA, you're required to stay at the property as primary residence for a minimum of 60 days or longer (correct me if I'm wrong), and can use it as an income producing property thereafter.

My husband and I are totally new to this and running a few scenarios on how to start out exactly --- we want to start with owning smaller multi family properties (duplexes, quadplexes, etc. but no sfh) then with the end result owning bigger apartment complexes years later. Definitely open to feedback and appreciate anything else we need to consider that would ultimately help contribute to making this real. :)

Scenario 1: We have 3 children (5 of us total) and currently living in an apartment for $890/mo (rent includes electric, gas, water/sewer/trash). We can go FHA on a duplex, rent the other side to cover our expenses. Eventually, we can get a SFH to live in later,but can we use USDA on this SFH while renting out the duplex?

Scenario 2: Get a SFH first via USDA (100k or less) to cut down on living expenses then start investing (FHA) in small multi family properties?

Scenario 3: Stay as a renter where I am now and wait until my credit score gets higher (630 now)? I feel like I'm just running in circles, and I can't take any chances on soft inquiries on my credit asking mortgage lenders these possibilities. Thanks BiggerPockets in advance!

lol by the way, I have no idea how to tag your names when replying! My family and I are truly grateful for both your feedback!

Thanks very much @Jeff Filali! 

@Michael Henry We are paying $890/mo which includes water, sewer, trash, electricity, gas and lawn maintenance.

Hi there! I'm a stay at home mom of 3 (ages 6, 4 and 18 months) my husband works 40 hours --- and we are sooo eager to build passive income! Did any of you start out investing with small children as well? 6 months ago, when we decided to embark on this journey, i was stumped to discover my credit score was too low (no credit history). Right now we have 10k alloted to invest, I've been building my score to 630 (still going), my husband has a high credit score (900 range) but he has a massive amount of govt funded student loans.

We decided I stay home until the youngest is old enough to be enrolled in school. I've read books, forums, blogs, watched videos--just about whatever I can get my hands on to learn about REI. We are currently renting an apartment to live in (rent includes utilities so we have more $ going towards capital).

Can each of you share how you started out? What advice do you suggest? I've been crunching numbers using the BP calculator, evaluating properties (targeting MFH). We plan to get at least a Duplex via FHA or up to a quad plex to really gt our feet wet as a landlord, maitenance, legal experience, etc. I just feel like we have a rough picture of where we're going (end result), but really need to map out how to get there. Realistically, what things worked for you in your circumstances and kept you going? Thanks, Nhia.

Has anyone taken Real Estate Express (realestateexpress.com) online school to become a real estate agent? I've researched and read good/bad reviews on them and curious if any of you have experience or know someone who has tried the online course?

Hi BP, I want to ask the experts on how to creatively finance my first property --- if you guys think I should do it now, or wait. First, my boyfriend and I found a quadruplex (1 unit is available, the others currently renting at $550/mo) built in 2006, been on the market for over 110 days, listed at $225,000. No HOA, but the seller/landlord currently pays for water/sewer averaging $65 total per month, tenants pay for their own trash and electricity. It qualifies for FHA and conventional loans.

After speaking with a local bank mortgage lender (I have 3 more meetings scheduled with 3 other local banks), he determines my credit score is too low (under 600, not from bad debt, but thin layer/little credit usage history). Whereas, my boyfriend's credit score is excellent (Equifax 798, Experian 748, and Transunion 819) but his income is too low. Hence, we don't meet the qualifications for conventional lending. Neither one of us has collections/debts, except for his student loans, we don't have any other loans. We are renting right now, so HELOC isn't a possibility, and we ruled out getting a cosigner too.

Right now, we are debating on whether to keep renting --- or, buy a home under his name via seller finance, FHA, Conventional, or even RD (rural development) housing that requires low down payments as first time homebuyer. We can put 15k down (only IF we have to) and still be okay financially. I figured instead of just renting, we can build equity in a home (via rent to own, or FHA/RD financing, live in the home for 1-2 years, and rehab it) as I build my credit score and find employment to increase our income.

I understand, conventional lending is not the only means of financing one's first investment property. A few exit strategies I've considered should we do buy a home: a) rent the home, b) rent-to-own, or c) resell it (although I rather not, I prefer buy-and-hold), while we purchase another multifamily property to live in. Or, we can wait until my credit score improves (could take 6+ months according to lender) then decide what to do next. I've also considered asking around for a personal or business loan to start real estate investing so I can build my credit simultaneously --- although I don't think it would work since my credit is under 600. Nonetheless, I don't mind being vulnerable/going the extra mile to make REI possible in our lives. If this means, I have to wait while working 2+ jobs, or taking personal loans now --- I'm willing and committed. I'm grateful and open to any suggestions you may have.

Thanks for everyone's input, as everyone's viewpoints hold sound advice from various angles. J Beard, I agree with you on not investing in Class-D neighborhoods, and I've still yet to physically inspect the place next week. If the area happens to be Class-D, I'm not going for it either. 

But I'm wanting to hear what more seasoned investors who are in the game longer than I have to say/share their own approaches each one took whether it was for their first investment property or had similar experiences that I may have overlooked.

@Justin Fingers: I love your suggestions on driving by the neighborhood especially during the evening on weekends --- I plan to do just that this Saturday.

@Ryan Roberts: I can understand where you're coming from and will observe tenants/speak with some who are comfortable in voicing their opinions (@Brian Stark: Thanks, Brian for this tip!)

I'd like to add, the property is the only one for sale on that lot, but there's actually 4-5 other buildings (from what I can tell via GoogleMap) in the same area. So I should get a pretty good feel when I drive by it Saturday! Thanks so much every one of you for taking the time in giving me advice. 

As a parent, it's stressful wanting to be able to give them more (by that, I don't mean money/expensive gadgets) but a more suitable living environment (no cockroaches/mice infested/ants). My son has been asking me for a "bigger house" and he'll build this tall tower from his blocks calling it our "new house." So it may not seem much to you all, but every single one of your advice/input is invaluable to me, trying to build passive income to achieve financial independence and smoothing out as many rough bumps on the road as I can for my family. It means so much, guys, thanks!