All Forum Posts by: Ellie Narie

 I am pretty much indifferent about what kind of carpet it is (carpet is fine with me), as long as it's nice and clean. The carpet in that one unit looks gross. Are there any negatives about having a drive-by appraisal instead of having the appraiser go inside? If I want to refinance in a year, then I'd need another appraisal, right? What if it comes in a lot lower? 

My lender said that because of coronavirus, it is possible to choose to have the appraiser not go inside the units (I'm getting an FHA loan for a 4plex). Should I still have the appraiser go inside or no?

I also got a home inspection, and the home inspector went inside all the units, so the tenants are ok with people going in there... but is there any benefit for me if the appraiser goes inside vs not?  Here are the facts about the property: 

Pros: 

-2/4 of the units have nice wood flooring. 

-All the units look "clean" and in "decent" condition, with some "buts"... 

Cons: 

-All the units need more caulking in the bathrooms and there is some visible (minor) vinyl water damage in the bathrooms (vinyl looks black-ish in some small areas). 

-Exhaust fans in the laundry rooms not turning on in 3/4 units. 

-Attic has signs of rodents (feces). Inspector said rodents probably climb on the trees and get in there, because there are tall trees touching the building. 

-One of the exhaust fans from one of the unit's bathrooms is disconnected in the attic, so the fan essentially blows air from the bathroom into the attic... 

-One unit has bad stained carpet, black in a lot of areas, but it hasn't been professionally cleaned yet, as the owners evicted the tenants from that unit (it will be the unit I will live in because it is vacant). Should I ask sellers to replace carpet?

Besides this, all the units look "clean" and in "decent" shape.

There are also some problems on the exterior. Some signs of dry rot, there was a little place where there was exposed wood (I know FHA doesn't like this, what should I do? It's hard to notice though). The siding has water damage in one area of the building, but otherwise, the building "looks decent" at first glance.

What repairs should I request from the seller? Where should I request "credits/discounts" on the purchase price from the seller? What does the seller absolutely need to fix for the loan to fund? Should I have the appraiser go in the units, or no? 

Do they have to be related? If it is unrelated people, can this still be ok?

I'm wondering... if I get an FHA loan and buy a 4-plex to owner occupy, and if I put another person on the deed who is NOT on the mortgage, would gift taxes be triggered? And if so, how are those calculated? If the 4plex is worth 500k (but I only put down 3.5%), does that mean that I'm "gifting" 250k to the other person? Or am I only "gifting" half of the downpayment?

And another question-- if I will be the only one claiming all the income and all the expenses for this property, does that mean that the other person is "gifting" me their portion - aka 50% - of the rental income from this property? Does this mean that the other person still has to claim half the rental income?

We want to structure it so that we are both on the deed, but I'm the only one on the mortgage, and I'm the only one that will claim the income and expenses, without incurring any additional gift taxes or anything. The other person doesn't want any of the rental income shown anywhere on their tax return. 

I heard that you can't get any 2-4 unit properties with an FHA loan if you have a cosigner. BUT, I also know a lender that does FHA construction loans and you can build a DUPLEX (not a 3-4 unit, but just a 2 unit) property with that loan AS LONG AS you qualify for it without using the potential rents as income.

Now, with that said, I'm wondering if I could BUY a duplex instead of building one and still have a cosigner. If we qualify for it without having to use the potential rent, could FHA let us do that?

Another question, what if the cosigner already has an FHA loan of their own, can they co-borrow with me and get a 2nd FHA loan? I heard that people can be a non-occupant co-signer on another FHA loan even if they already have their own FHA loan, but I'm wondering, can they be a co-borrower, not just a cosigner, on a 2nd FHA loan? So it would be my first FHA loan and their second FHA loan.

What do you mean it would restrict them? As in, if that person were to apply for their own mortgage, the taxes would count against them? Is that correct? 

I heard that the 3% conventional only works for single family homes, not for 2-4 unit homes. I'm less interested in pulling out a heloc, but more interested in being able to get another fha loan again. 

If you get a multi unit building with an FHA loan, and it appraises for 20% more than you paid for it... can you refinance it to conventional within a few months?

And if so, will you need a new appraisal, even if you just got it appraised a few months ago? 

And would you not have to live in it for the remainder of the year if you refinance out of fha?

If I buy an FHA 4-plex house hack and am the only person on the mortgage, can I add another person (not a spouse) to the deed? And if so, can I still claim all the rental income and expenses, or does the IRS force us to split that 50/50?

I'm looking to buy a 4plex, and my realtor introduced me to an off market deal. The quad has 2/1 units, each renting at 900 a month, and one of them is empty (so perfect for a house hack). My market is very tight, I live in a small town on the west coast, and 4plexes come on the market rarely (and this one isn't even technically "on" the market). There was one 4plex that came on the market a couple months ago, that's literally on the same street as this one, with the same rents, and got 3 CASH offers of 500k.

But with the whole corona thing, surely I shouldn't be paying 500k here? What would be a good offer? I'd also be responsible for water/sewer/trash which adds an additional $350 per month of expenses on top of the mortgage. I hope to manage the property myself, and to use an FHA loan.

Help, what should I be offering to make house hacking work? The price wasn't specified, the owners want us to make them an offer,but it was hinted that they wanted somewhere along the lines of 450-500k. Should I offed 430k? Or less? What do you think?