All Forum Posts by: Robert Johnson

@Caroline Gerardo I did have a few lenders say that this would be something we’d have to work through. The lender I plan on going with has said that we can work through these issues. Never heard of them basing it on the value of the property, more just about the why you’re moving. Interesting stuff! Thank you!

@Wayne Brooks that’s what I thought. So I can’t use the rental income from my current residence, but I can use the 75% of the rental income from my 4 unit. As far as the down sizing my lender has already said they are willing to work with me on that. For my personal situation it just makes more sense for me to have a 4 plex right now. Thanks for the information!

@Jaysen Medhurst the confusion is I have seen people who have done the house hack strategy a couple of times. From the way I understand the FHA guidelines it only appears that the rule only applies if you are going from FHA to FHA loan it has to be 100 mile radius move. Doesn't really mention if you are moving from conventional to FHA.

Hey BP,

I'm looking at getting a 4 plex as a primary residence for a house hack. I'm working with a lender who is confused about the 100 mile FHA rule. I currently have a SFH under a conventional mortgage that would be about 15 miles away. Does this rule apply if you have a conventional loan going to a FHA?

Thanks guys! Going to call around some more today.

Hey BP!

I am trying to get ready to go after my first house hack 4 plex in the McAllen area in Texas. I have been working on trying to get my financing in order.

This is going to be my second property, I bought a SFH last year before I started learning more about REI. Running the numbers on my house now, I would like to hold onto it as a rental property. Running the deal looks like I'd get about $300 (conservatively) a month in cash flow keeping it.

The only problem is that this throws my debt to income ratio off a bit more than most lenders I’ve been talking to want. I currently have W2 income of about 45k a year and I’m looking at properties in the 220k-250k range.

Is there any way to use the rental incomes from the SFH or the potential rental incomes from the house hacks to get a lower DTI? Any other strategies you all think would work? Or should I just look at selling my SFH. Thanks in advance guys!

@Jake Frey good point. I would definitely be looking for something without an HOA. Also I would be looking for property with a little more land that I could add a parking pad for it and not take existing parking. Really for me I just don't want to have to move and settle in a new place every year.

@Nelson Van definitely. It makes you have to look for 2 deals in this process. RVs (the ones that have a motor) depreciate absolutely horribly. I’m actually looking at used 5th wheels and travel trailer which hold value much better, plus much less to maintain.

Thanks @Kirk R. I talked to a business partner of mine who is on our city zoning commission and he told me as long as the property is zoned for multi family I’m good to go. I am interested in this because I like the idea of living a smaller lifestyle and not have to move around so much. Plus opportunities for additional income stream in south Texas with snow birds and the RV pad.

@Jaysen Medhurst thanks for the feedback. I need to do more research on the wording of the law, but if I am living in the boundaries of the property it seems like that would fulfill the contract. Also in south TX I can rent the RV pad out seasonally after I move. The reason why I don’t want to move is because it is a hassle to settle in to a completely new place every year. May look into a conventional loan as well, thanks for the tip!