All Forum Posts by: Patrick Ketchum

I'm looking at multifamily properties in Ogden right now. My problem is that most of them are 100 years old and don't want to deal with an FHA.

I did find one property that would accept an FHA, it's only 60ish years old and it seems to be in good shape. It just barley meets the 1% rule and the cash flow per unit isn't wonderful.

I'd like to know from an experienced Ogden investor if this is a deal worth considering or if more multifamily properties like this come up frequently with better cash flows that I should wait and look for?

Thanks for your input!

Hey Dave, 

Welcome to the BP community. The podcasts are pretty inspiring right? I'd love to get together sometime and chat about your goals and how we might work together in the future. 

As far as learning about home buying, I thought some of the stuff discussed in podcast 133 was really valuable. Also, anything you can read by Ben Leybovich who has written a lot on here about creative buying strategies:  

http://www.biggerpockets.com/users/JustAskBenWhy

Good luck, Dave.

Thanks in advance to anyone who can help me out with this. You guys are awesome.  

Question 1: I'm thinking about using a small amount of private money from a family member (less than 10k) on my next deal. I think this could be a good way to build a track record so that I can gradually move up to larger amounts of private equity in the future. Good idea?

Question 2: What things do I need to prepare with the private investor/family member to show to later investors down the line? Do I need to have a written agreement and then copies of payments that I make to them or something else?

Thanks again for your help. 

@Jacob Tucker

I really like all the stuff that has been said here so far. I got into bp not too long ago myself. I've found it's one thing to get great answers to questions from knowledgeable people on here, but it's even better to get in touch with some of these folks from around your area who have already offered great advice and take them out to lunch to hear their stories and learn from their experiences. Focus on learning and building relationships now and it will pay off big down the road. 

It's always great to see another person from our area on here. Thanks for sharing some of the numbers from your property, they were insightful. Good luck finding your next property.

@Albert Bui

You bring up a good point. I didn't realize that you couldn't get rid of the mortgage insurance on an FHA even once you built more equity in the property. I imagine that could limit CF down the road.

I really appreciate the great advice. To summarize it sounds like we can do an FHA on a multi-fam home, or something similar, but that we would also need to save reserves as part of the lender approval process of 3 mos of PITI mortgage payments. It also sounds like I need to start talking to lenders about the fact that although my wife is a W2 employee, I am a business owner and there may be some additional roadblocks in the process because of that.

Thanks for your help!

If this is a dumb idea, please call me out on it. My wife and I are thinking about making our first home a multi family home (duplex to fourplex range), and I'm wondering what the best financing option would be. In my area these properties start off at 200k. We don't have 20% to put down, I'm not interested in borrowing money from relatives, and I don't like the sound of zero down deals just yet. Could I do something like an FHA since this is our first house even though it would be a multi? Are there any other low % down payment financing options out there?

Any advice or experience would be really appreciated. Thanks!