All Forum Posts by: Nicholas Butler

@Tom Shallcross my original plan was to house hack this but everyone wants higher down payment for a 4plex every lender I've talked with couldn't close the deal at the 3.5%

@Thomas S. Are seller seconds just not a thing anymore?

I'm trying to buy a small apartment building, 4plex. The seller has agreed to sell me the property if I can find funding he is willing to cover down payment with a seller second. The property is 200k he is willing to do a seller second up to 50k if I need it. All the banks want atleast 20% down. I don't qualify for FHA or any Fannie programs since it's a 4plex. My mortgage guys tell me they can't find any lenders that will accept a seller second to fund the down payment but I'm sure there has to be some options out here. Any recommendations??

I've got a question about getting an FHA loan? I've been working with a mortgage broker to get my deal worked out. I am trying to get into the property with the lowest down possible. Here's the details: 4plex 200k sales price. The seller has agreed to pay all closing costs if we structure them on top of the 200k. I have about 10k to put down as a down payment. My DTI is bad I am a bartender I need a co-borrower to qualify for anything. My father has agreed to sign on. He currently has a FHA mortgage on his home. My loan officer claims this is the reason we cannot go FHA. Is this true or is it an overlay or additional requirement based on his company? I'm hoping to close on this loan by October, and worried if I can't go FHA I won't have enough cash on hand to get the loan. Any advice?

@Jack P. Great advise,, I do plan on managing the property myself but I do plan on taking a very professional approach so I don't end up with dead end renters. If my rent is free should I still send myself a check from my personal bank account to an account specific for the complex? Is it more important to show the property getting 4 rent checks for higher income, Or show less profit in hopes of owing less taxes? As far as financing is a bank loan my best bet,, do private lenders or hard money ever fund high LTV for a buy and hold? Just trying to make sure I'm going about it the best way

@Nicholas Aiola thanks that kind of goes along with the reading I've done saying LLC is great once you need it, but in the beginning if this property is all I'm invested in, it wouldn't be worth the trouble, until later when I have more equity and other investments.

Hello I'm in the process of buying my first property. I don't have anyone in my family or friends that's owned real estate so it's hard to find someone to lead me in the right direction. Property is a fourplex in a mid level neighborhood. It is fully rented, I have lived here for 6 months as a tenant. It is off market. I talked with the owner he agreed @ $200k he would sell me the property. I feel like it's a good starter and am finishing up working with the mortgage company to get approved. I have around $10k in funds assuming a FHA/Freddie loan would be my best financing and would require 3-4% down.(Open for advise there.) I have an appointment with a CPA he mentions starting an LLC. Is that worth the cost if this is my only property? The owner isn't dealing with an agent hes an older gentleman,and just wants to walk away from the deal with his money. Since I don't have an agent to guide me thru the process do I need to hire an agent myself, do I need an attorney? The property is low maintenance, the other tenants are all 5+ years in place, the total rent is 2800 and expenses looks to be under 2000 per month. I basically have an offer accepted and a small down payment where do I go from here?