All Forum Posts by: Rafael Medrano

@Ned Carey  Since he preceded that comment with the question of how he'd get approved on more than a couple loans what he's really saying is he'd be out of financing (money) pretty quickly. You could have a million dollars for down payments but if you can only finance 10 to 15 properties as @Kyle Spiewak mentioned then you're S.O.L. It's easy for you guys to suggest "just look for creative financing/seller financing when you're working a huge metroplex like Memphis, San Diego, or Maryland but when you're in small towns like Centennial, CO or Midland, TX those opportunites are far fewer in between. So to add to @Peter Padalino's question, what are you supposed to do when you've hit the ceiling to how many loans you can get and you're in the middle of a month or two waiting for a seller willing to finance? Do you just sit on your hands with $100K, $200K, $300K in your pocket and help other investors grow their portfolios by wholesaling the deals to them? You've already got money to put down on properties but you've still "run out of money". What do you suggest we do??

Correct that's what I've heard that really interested me. From what I gather, you have to reside at the property for 6months before you can move out and then apply for another FHA loan. If it's true you can get more than one in a lifetime then that's truly awesome. Perhaps our friend @Upen Patel could clarify that for us, he's a nationwide lender.

Thank you @Upen Patel

Here's another question I have if you don't mind me throwing it at you. I've heard both yes and no to this question: Can a person only receive (1) FHA loan in their lifetime or is it a fact that you can have only one at a time but continue securing FHA for life? If I were to answer the question then based solely on the name I would guess the former to be true but ever since I heard getting multiple FHA's is a possibility I could see that as a very powerful tool for investors to leverage their money again, and again, and again.

Hello everyone, 

So i'm looking into purchasing my first property and would like to see what everyone thinks. Quad is being listed and sold by a local real estate agent who wants to get into flipping. He's asking $325,000 and doesnt wanna come down. Claiming his accountant suggested the property be listed for $350,000 based on rental income. All 4 units are 2bd/1ba and 947sqft. 3 of 4 units have been renovated. 4th unit only needs light touching up. All units have been leased with 12month contracts. The oldest of the 4 will expire in 7 months. (2) Units rent for $1,200 (1) Unit rents for $1,000 and the unit requiring some work is renting for $800. Property taxes are $3,900. I'd be going with an FHA loan so looking at around $11,500 down. If there's any pertinent information I'm missing please let me know. I'm on the fence on this one. I know it's not a killer deal with $80,000 in equity right off the bat but do the numbers make sense or should i walk? Quads are pretty rare in my area and most duplexes in the area are selling for $250-$290. I'm thinking a fair deal is better than no deal at all and down the road a few months from now if something else comes up i can always refi and get another FHA on something else. I'd appreciate any feedback you can give. Thank you for your time.

That makes sense-opens up a larger pool of possible buyers.

Key word *should* know

@ Theresa Worsham Great response Theresa. I'll speak with the local planners and see what their thoughts are in allowing this kind of conversion. And of coarse money is the main upside; in fact, i'd say it's the only upside. 

@Chris Mason I definitely don't have a problem with owner occupying a unit; when the property went up for sale a few days ago there was an empty unit but just afterward it got rented out to a tenant. According to the owner all leases are 12 month contracts and the oldest of the lease agreements will expire in 7-8months. The reason i wrote this post is because I'm not sure if that means I'm S.O.L. when it comes to FHA financing or if it's still a viable option. The lease agreements are standard TREC contracts, the seller is actually an agent, neither of us is sure if we can legally get one of the tenants out. I suppose some "bribery" wouldn't hurt, like offering a tenant a couple months worth of rent if they can move out within x-days.

@Steve Bracerothanks for the feedback. My concern however is the FHA clause stating that you must reside in the building for a certain period of time to qualify for the loan. Since the building is fully leased I'm curious to know what options i have to make the financing go thru. @ Greg

@Thomas S. I like your thoughts on consulting with an attorney. Similar to what Greg suggested but way more efficient I think. I'll do my due diligence and see what i can find.

So you find a duplex, triplex, or quad you'd like to house-hack. . ."problem" is all units have lease agreements in effect and are being occupied by tenants. Is it possible to evict a tenant in order to secure the FHA loan? Thanks in advance.

Hello BP community, 

   Hope everyone is doing good on your ventures. My question for you today is this: What is the viability of converting/subdividing a quadplex into 4 separate condo units in Texas or nationwide?? Please provide pro's and con's, if any, for everyone to be able to better weigh their options if this is a consideration for anyone. Thank you in advance! =)