All Forum Posts by: Erin A.

I've never been in this situation before, but I believe what you want to look for is a "seller carry" document. Do you have an agent? If so, s/he should be able to help you. If not, see if you can find an agent to help you draft this document, perhaps for an hourly fee rather than commission. Or, you could find a local lawyer to help you instead of an agent.

Hopefully others will chime in. As I said, never been in that situation before!

This is a really exciting time for you. Good luck! Let us know how it goes.

Erin

@David Krulac makes a very good point about accessing vacant units for inspection and repairs, as well as high vacancy rates being a better thing on a triplex or quad than on a larger property.

Mark, are you intending to owner-occupy or will this just be a pure investment property? The answer to this question might affect your outlook on vacancy.

Hi Joel,

I apologize for the delay in my response. Thank you so much for your feedback on this. FHA rules are frustrating! Thankfully, I've got this minor fiasco figured out now and we're once again moving forward.

Thanks again,

Erin

Ah, good question. I just had to make a decision about this a few weeks ago when I made an offer on my first property.

I initially told my agent that I only wanted to see properties that were fully rented. I wanted to use the rental income in addition to my own income to qualify for a higher loan. I then realized that since I was doing FHA and needed to owner-occupy I'd have to evict someone in order to move in. That did not sound appealing. Plus, I wouldn't get to choose my own tenants.

My ideal situation would be to find a 3 or 4 unit property that has one or two units vacant. I wouldn't have to evict anyone, I could choose my own tenant if needed, and I'd have minimal other tenants that weren't of my choosing.

I ended up making an offer on a vacant triplex--go figure. It was in immaculate condition, totally move-in ready, right across the street from a huge medical center and within 2 miles of the nearby university. While I'm a bit stressed about finding tenants once we close, I'm pretty confident that I'll find some good folks from the medical center or the university.

Feel free to write me if you have more questions. Best of luck!

Erin

What an awesome idea! I love the re-use/recycle aspect, and the free paint sure doesn't hurt, either. Will definitely consider this for my next paint job!

Thanks for sharing.

Erin

Wow, sounds like you actually got really lucky!

I'm a new investor (first property in escrow as we speak) and I know situations like this will arise at some point. It's helpful to know how others handle it. Thank you for sharing.

Erin

Hey, Steve!

I just sent you a colleague request via BP. I'm in the Bay Area as well (Oakland) and would love to connect.

My name is Erin Allard and I'm a recent grad. I earned my BA in economics and my MS in international real estate. I've kept a decent job throughout college, saved my pennies and am now in escrow (FHA) on my very first property, a recently renovated triplex in Stockton.

Just curious... why are you looking at markets so far away for your first investments? True, the Bay Area is expensive, but there are definitely some more affordable areas where you can still find lovely homes.

My own short- and mid-term strategy is to serially owner-occupy multifamilies with FHA financing and live in one unit while renting out the others. Perhaps multifamilies are an idea you might consider, especially if you find a property in the suburbs but near the BART line that could take you into work every day.

Anyway, would enjoy hearing from you. Good luck!

Best,

Erin

Hi all,

I'm in escrow on my first real estate deal (ever), a vacant triplex in Northern California. I'm using FHA financing and everything has gone extremely well... until now.

Despite asking my mortgage broker on multiple occasions if I'd need cash for anything in addition to my down payment, inspections and appraisal, he has just informed me that I need 3 months of reserves (about $3,500) in my checking account at closing. And basically said I need to "work that out" and get back to him. He did say I can use gifted funds, which is a relief because the deal will fall through otherwise.

My main question is this: why does the FHA require reserves on 3 & 4 unit properties if they've already approved me, based on income, for PITI that I can afford on my own? The triplex is vacant so I have to be able to afford it based on my own income from the get go. (I already know about maintenance costs, etc. but the property is in excellent condition.) I don't understand!

I'm assuming there's nothing I can do about this. Correct?

Thanks everybody,

Erin