All Forum Posts by: Account Closed

@Todd Dexheimer Thanks so much for your input! I really enjoyed your podcast episode by the way. My wife would love to own/operate a wedding/event venue someday. I thought your idea with the ski resort was a great one.

Also, I think you swayed me on out-of-state investing when the time comes for me to scale up the real estate investing side of my business.

Thanks again!

@Tim Swierczek Thanks Tim. I admire the way you're  always thinking ahead give me great advice. I'll be in touch down the road if need be. First step is to find that great deal! 

@Kristen Schade Thank you for your prompt response. I've sent you a message and look forward to hearing from you soon.

Hello from rural MN,

My wife and I are relocating to the Minneapolis-Saint Paul area as a way to scale our eCommerce business (in order to leverage the population size to increase our sales volume). I'm looking for suggestions from you on which neighborhoods I should investigate. Ideally, I'd like to house hack a duplex using an FHA loan, but I'm not sure if that's possible (maybe if less than 25% is used for the business)? Here are some factors that will be important:

• Zoned properly for the legal operation of my home business. 
• Climate-controlled office with a bit of storage space.
• Centrally located (for sourcing at grocery stores, retail stores, garage sales, estate sales and auctions). 
• In a safe neighborhood suited for quiet family life.
• Great value.

We plan to move to the area in approximately 1-2 months.  We will rent until we find the ideal property, so any advice on finding affordable rental units with the same characteristics mentioned above would be appreciated. 

Thanks again for your help in narrowing our search!

@Tim Swierczek Thanks for your insight on the 30 day job minimum for FHA loans. I appreciate your recommendation of patience at this point. I don't want to put my family in a vulnerable financial position by obtaining a loan before having a full understanding of the financial landscape, costs, etc. of my future location.

Are there any other specific FHA restrictions I should be aware of that seem to trip up new investors (e.g., is there ever a case when a borrower will be required to have a down payment more than the minimum 3.5%)? I really appreciate your advice!

Hello BiggerPockets Community,

My name is Phil and I'm an aspiring real estate investor currently living in greater Minnesota. I've been thinking about, researching, and trying to plan for my RE investing future, but I'm feeling stuck at the moment (more on that below). I am hoping your advice/insights/new perspectives will inspire me to take action. I know this journey is personal and that I'll need to make my own decisions and take my own risks, but I'd love to hear your suggestions on the best plan of action moving forward. 

A bit more about my current financial situation:

Current Income-

• $6,800 monthly gross wages (my wife and I both work full-time in higher education)

Current Debt-

• $99,945 mortgage balance on single family home 
  • Monthly payment of $858 (includes P&I, insurance, taxes, and PMI)

Misc. Financials-

• Credit Score: 750-800
• Non-retirement Savings: $30,000

Real Estate Holdings-

• Aforementioned SFH purchased for $117,000 (4.25% interest rate).
  • Recently sold comps ~$135,00-$150,000 (we put sweat equity into the house- new paint, DIY hardwood refinishing, replaced carpet)
  • House is 3 bedroom, 1.5 bath rambler with double attached garage, patio, and attached 3 season room. Basement is unfinished.
  • Rent is low in our area, so keeping the house as a rental doesn't seem viable. We will plan to sell. 

Experience:

• My father is a remodeling contractor, home inspector, property manager, and county rental inspector. I've worked with him on many projects (including a foreclosure rehab) and am very familiar with property management. 

Short-term Goals-

• Purchase and owner-occupy a multifamily unit (ideally a 4-plex). I will self-manage the other units.
• Transition to living off one-income and start having children (my wife enjoys being busy and the social aspects of work and wants to continue full-time employment).

Long-term Goals-

• Grow real-estate portfolio to consist of a handful of multi-family units.
• Live off of real estate investment cash flow (i.e. achieve financial independence).  

Why Feeling Stuck?

We currently live in rural MN, but want to relocate to a larger city in Minnesota (ideally somewhere in the Twin Cities Metro, but maybe other population centers like Mankato, Duluth, etc.). As such, we've been holding off from selling our house, searching for multifamily units, investigating loan options, etc. until my wife finds a new job and we know where we will be living. In my head, the steps moving forward look something like this:

Find job ---> Move into temporary rental ---> Sell house---> Be pre-qualified for FHA loan--> Find multi-family unit.

Here are a couple of questions: 

• What should I be doing now in preparation if I don't know the exact location where we will end up? I've been doing a lot of research (books, blog posts, podcasts, etc.), but I'm anxious to take action. 
• Is it a mistake to wait to apply for a loan until after we make job changes? I assume my wife will have a monthly gross income around $4,000, but it will be a brand new job for her and I won't have any income to show on a loan application. 
• Am I missing anything?

Thanks in advance for your thoughts and suggestions.