All Forum Posts by: Scott Ellis

Thanks @Robert Sepulveda. I think our plan would be to live in one triplex, so I think my plan will be to pursue 1 FHA loan and 1 conventional loan to be closed simultaneously.

I would expect closing costs to be higher for two loans, but it's good to know that certain costs could be discounted by doing both loans at the same time.

Hi @Teresa Miller, 

I'll wholeheartedly vote for the roomate option, especially since you have extra rooms.  

My wife and I have been doing that for two years and have virtually zero regrets. We did it to pay down her student loans, but it's also opened us up for investing as well.

She is in a graduate school program. We started by renting to another student in a different program.  It opened our eyes to just how transformative this could be; so we added another, completely covering our mortgage.  The first month with our mortagage fully paid for was a truly wonderful feeling.  We shifted some things around and now have a couple living with us as well, which covers 100% of our house related expenses—mortgage, remodel loan, city, energy and cable & internet.  Grad students have been awesome tenants because the school administers background and drug tests during the application process, they're ultra-motivated to be successful in school, and have financial aid: so they know where rent will be coming from all semester.

Our next move is looking at a triplex that we would move into for one year in order to do FHA financing and only have to put down 3.5%. Meanwhile, our current home will be fully covered (and then some) by our tenants and building equity.

For us, generating additional income has been way more enjoyable than living like total peasants to save.  We still have a lean budget, but we cut mercilessly on things we don't love so we can spend extravegantly on things we do love. For instance we actually upped our eating out and coffee budget some so we could go out and offset the effects of losing some of our privacy at home.

Best of luck and keep us updated as you start formulating a plan.

I'm looking at a deal involving two triplexes.  They're separate parcels, each priced at $139K, but the seller is selling them together for $278K.

My wife is in grad school and we're considering this deal for the opportunity to move into one unit and slowly transition the other units into student housing for others in her program.  However, not owner-occupying isn't a deal breaker.

Any advice on how to pursue financing?

• 1 FHA and one conventional? (this would be my preference)
• 1 commercial loan that covers both properties?
• 2 convential 30yrs.  

I like the idea of two separate mortgages, because I feel like it's slightly less risky.  If need be, we'd have the option of selling one triplex and holding on to the other.  However, I'm curious if there are parts of the closing process that could be batched to reduce costs.

Thanks a lot.  I've been learning so much from everyone here on the forums.

@Scott Rowsick, How are things going?  

Which books have you read?  Have they changed or helped shape your plan of attack?

My wife and I bought a single family home.  Then ended up finishing the basement and renting out rooms to some fellow grad students in her program.  Getting checks for more than our mortgage each month is truly an awesome feeling.

Looking forward to an update, and best of luck. . .  

Hi Daniel, I'm in a similar situation as you. I'm from Spokane, but living Madrona for six months. We rent out half of our primary residence, but I'm ready to start investing. I'm currently looking at a triplex. My wife is still understanding the concept of investing and is scared of the "debt" and getting stuck making double mortgage payments in between tenants. I'm looking at 3-4plexes because we can have some rented while cleaning up the others. I also want to partially furnish and target graduate students. We're able to charge much higher so cash flow is better than sfr that I've looked at. I'd enjoy grabbing coffee and chatting more. Good luck!