All Forum Posts by: Pete Jimenez

Hello BP, Looking to make an offer on a duplex, one side of the duplex has a 2 car attached garage. 1 of the garages has been converted to an additional bedroom and I would like to convert the second garage into an additional bedroom as well.  The converted bedrooms have & will have a window, closet, and central AC & Heat, they are good size rooms. This will take one of the units from a 2 bed one bath to a 4 bed one bath.   

My Question is the following......

Will section 8 count the converted garages as additional bedrooms when applying for a Voucher? The difference between a two bedroom voucher and 4 bedroom voucher is substantial. The bedrooms will have direct access from inside the unit. Thank you in advance for your response. 

Hello All! Are you allowed to use any gift funds for part of the  down payment on an investment property?

Hello BP, I am a new investor and would like some advise on what to do with my current rental property.  The options I'm considering are the following....

Property appraised Value $480,000 ("A" neighborhood)

Owe: $313,000 

two HOA's: $240 per month total.

Option 1: 

Currently on a FHA loan and will be doing a cash out refinance ($30,000) and converting into a conventional loan. With a cash out refi and will still be saving about $25 per month vs what my current loan is sitting at. I'm cash flowing a bit on the property and there is opportunity to raise rent $200 when my current renters leave. Current renters are excellent and have never paid late and the area is a great area to live in.

I have about $50,000 saved and can take the $30,000 (cash out) and use all the money ($80,000) for a down payment on my next investment property. I hate the HOA's as they have gone up over the past couple of years by $100.

Option 2: 

Sell my current property for appraised value and after fees can 1031 exchange the equity of about $137,000 into another property. I could even add my $50,000 savings and possibly purchase two properties. This would most likely be B or C neighborhoods. 

Cash flow is important but isn't the end all be all for me at this time since my fiance and I both have great jobs. My goal is to buy and hold for the long term and have the cash flow working for us in the next 15 or 20 years. as we get close to retirement.

Thank you for reading and appreciate the feedback. 

Hello, I just completed my 1 year mark living in my current home in Ca under a FHA purchase. I will be moving out and renting out my house and purchasing another property. However, the total rent I'll be receiving will be enough to cover all expenses but I will not be cash flowing on the property. I have about $50k in equity, I live in a market with good appreciation and great renters. With a rent increase in one year I will be cash flowing slightly, my mortgage will be getting paid down by the renter, and I'm assuming I'll gain some appreciation. I know I shouldn't be expecting too much cash flow out of the gate since I acquired the property with only 3.5% down.

Is my situation normal givin my circumstances? Should I be selling instead of renting? I feel in a couple years I'll be in a much better position cash flow wise. 

my wife and I both have great jobs and can pay cash for anything that goes wrong with the house. However. The house is in great shape. 

Any any insight will be great!!

I don't care what people say, nobody knows what's going to happen. Invest at your own risk. Run your numbers, run them again, have someone else run them and then make your decision. If you dont move forward with a deal, or just backed out of a deal it will be OK. More deals will come your way, there is no harm in waiting if you are uncertain about the market. When all this blows over, the market will be in the same place as it is now or you'll be able to find better deals. Also, there is no sweat if you just closed on a deal if the numbers made sense. Every market is different so do your own research! Good luck to everyone as we move pass this!! 

If there is an eviction ban in place how can someone do an FHA owner occupied on a multifamily if there are tennant's in place? FHA requires you move in within 60 days and most bans are minimum 90 days.

I'm about to close on a 4 plex and want to know how the ban will affect me moving in when there is a ban in place. The ban could be longer depending on what happens.

Hello, BP! I am closing on a 4 plex and the inspections didn't come back the best. Termites, dry rot, fungal & and new roof needed. This isn't a deal breaker as the owner is willing to do repairs, fumigation &  new roof. 

My question is the following......

Should I provide the home appraiser with all the inspection reports? I want the appraisal to be fair but sometimes the appraiser doesn't know what's going on behind the walls. Also,  they aren't able to determine how much life is left on a roof. Or is this a bad idea? 

I'm in the middle of buying a 4 plex! Still planning on moving forward with the deal. Is there any issue collecting rents from section 8 renters during a down turn?

Hello, BP! I know mortgage rates dropped and came back up yesterday and today. I'm in the middle of purchasing a 4plex....Rates are 3.5% or 3.2% with $1700 buy down on FHA. I'm thinking of letting it float as rates may drop back down. Thoughts?

Regardless of what the market does, those who have "buy & hold" properties aren't going to see a big impact. Especially at the multifamily level. There will always be renters for duplex, triplex, 4plex.