All Forum Posts by: Randy Rettinger

Let me know if you find one or simply an accountant that specializes in real estate to take care of us investor types in the local area. For some reason, I hear they are hard to come by in the Albuquerque area.

Glad to meet you Devin. Seems there are many of us trying to get this REI game on in Albuquerque. I would be happy to talk to you about the property and what may be my recommendation. Like you, I have passion for this business, but that isn’t a guarantee of success. Education, networking and some resources will help greatly. You are in the right place and we would be glad to have you come to some of the Meetup groups in town to introduce yourself and discuss your way forward. Just go to meetup.com, sign up and search for real estate in this area, you will find us...

Ben,

I am just about where you are and would love to discuss more with you what you are looking to do. I have a full time job in Albuquerque but want to create more for my family down the road as well. Let's connect and see if we can motivate each other!

Originally posted by @Arlan Potter:

@Randy Rettinger

What will your house rent for?

4 cheap rentals will make a lot better return for you investment.

 Hopefully $1,800-$1,900/month. Payments are $1,100.

Originally posted by @Upen Patel:

Originally posted by @Randy Rettinger:

As a lender, would you not even consider it if I were going to convert it to a rental immediately after the purchase of a new primary residence?  In my case I would think I need to stay in my current house, make an offer on a new primary and as soon as I close, I would make every effort to move, and do my fix-ups within 3-4 weeks and have the current primary ready to rent.  Hopefully I would be successful at renting it right away, but I do have some reserve funds set back to cover payments on it for a few months in case it wouldn't rent for the first 2-4 months.

 When you get the new loan for your new primary residence, you will sign an affidavit that you will occupy it for at least 1 yr (you can always sell it). Also, since your current house will not already be rented, so you would be qualified on the basis of being able to afford both the houses and the requirement of having enough cash reserves.

So, as long as you do occupy the new house in a timely manner then it should be all good. If you turn around and rented the new house and stayed in the current house, then it would be mortgage fraud. If the lender found out they would recall the loan and potentially prosecute you.

There is always the possibility of someone doing what they should not and lying about it. If lenders lend based on the hypothetical possibility they there would be no loans.

Hope this answers your questions and concerns.

Upen Patel, Mortgage Banker

Federal NMLS# 1374243

Thank you!  That makes great sense and helps me greatly in making progress toward a decision in what to do toward a move in the right direction.  Timing is everything and it always scares me to sell and buy anyway and it worked out great when I bought the house.  The idea of hanging on to it for an investment purpose when I already have it and want to head into the investment property business makes sense, but only if I can do it legally, feasibly and financially efficiently.  And...if it will rent.  That is the next question for the local market experts.

Appreciate your wisdom.

Randy

Originally posted by @Arlan Potter:

I wouldnt. Too much money in one house. Sell it and buy four cheap rentals.

So, I expect my current primary is worth about $230K to $240K and I owe just under $190K.  I am thinking I would put about $15K into this house and it would be in perfect condition for years to come.  Wouldn't it be harder to round up more cheap rentals to get better income and it would take far more work to get them rental ready for the work it would take to manage and maintain them?

As a lender, would you not even consider it if I were going to convert it to a rental immediately after the purchase of a new primary residence?  In my case I would think I need to stay in my current house, make an offer on a new primary and as soon as I close, I would make every effort to move, and do my fix-ups within 3-4 weeks and have the current primary ready to rent.  Hopefully I would be successful at renting it right away, but I do have some reserve funds set back to cover payments on it for a few months in case it wouldn't rent for the first 2-4 months.

Hi, I am a new member and want to be investor.  I will need to be upsizing shortly as my wife and I will be having her mother and grandmother move in with us in the next 3 months or so.  We have good equity in our current 4 bedroom, 2 bath house in the city we live in and are considering turning it into our first rental property. It will need a few minor fix ups as we want to keep it in great condition - new kitchen cabinets, fixtures, redo one bathroom and carpet in living/dining room and hallway.  Rest of house is good, but could use new windows.  Any concerns with the current mortgage holder in doing a deal like this from any of you pleasantly experienced investors?  Any advice?

Thanks - Randy & Linda R