All Forum Posts by: Johanna S.

@thomasfranklin

Excellent thanks a lot ! appreciate your time and knowledge.

@Johanna S. You and your family can continue to live, in one of the Multifamily Units, after the first year. This will give you time to pay down your Credit Card Debt, strengthen your FICO, build your Capital Reserves, etc. When you feel the time is right, you can begin your search, for a house, for you and your family. 

@Johanna Serna.  Everyone has so many good suggestions for you here on BP, and I know your situation will dictate how to proceed.  

Suggestion . . If you would like to live in a new home and ALSO rent your current home for cash flow, perhaps consider a LEASE-OPTION on your current home, and then find a NEW lease-option arrangement for another home that you want to move into and also own 5 - 8 years in the future.

What is a LEASE-OPTION? It is when an owner / landlord rents a SFR / CONDO / TOWNHOUSE to a tenant that wants to OWN the property some time in the future, usually 3 - 10 years later. The option terms are negotiated, as well as the rent amount, which is usually higher than market rent.

A portion of the tenant's rent is put aside by the owner each month.  This is for the down payment on the property when the option is exercised 3 - 10 years later.  If the option is not exercised - owner keeps all monies.  Maintenance CAN be included in deal so tenant will take care of property.

A Realtor should be able to help.  Once your current home is leased, and you have a temporary apartment, start looking for your own future home to lease-option.  Or look simultaneously.    I hope this helps.  God Bless. 

@Johanna S. Thank you, for expanding your personal details. You can sell your home, pay off your existing mortgage, and use the avails, to purchase a Duplrx, Tri Plex, or Quad. Because four units and less qualify, for residential financing, you can use a FHA Loan to acquire the Multifamily Property. As I stated before, you and your family can live in one of the units and the rental income paid, by the other tenants, will pay the monthly mortgage and other property expenses, provide you additional income, and help you pay down your credit card debt. To use FHA Financing, on four units or less, requires the owner to reside, at the property, for a minimum of one year as their primary residence.

@Johanna S. Looks like you would get about 50K max from a cashout refin / HELOC. Given that your financing situation looks tricky a refinance is probably not the way to go. Perhaps you could sell and get into a duplex or multi-family as owner occupied to lower your housing expenses.

@Johanna S. Looks like you would get about 50K max from a cashout refin / HELOC. Given that your financing situation looks tricky a refinance is probably not the way to go. Perhaps you could sell and get into a duplex or multi-family as owner occupied to lower your housing expenses.