All Forum Posts by: Spencer Glaser

You say "Some rehab is needed" but you should what you think the estimated rehab amount is. 

Wow, thank you for the insight @Paul Defngin! So my first purchase was a duplex with a primary conventional mortgage through a local bank that required owner occupancy. I now want to use an FHA loan to acquire my second property and move in to the second property.  

It sounds like there is a "seasoning" period and i need to remain an owner occupant in my first home for about a year before i can get an FHA loan, or else it looks fishy like I am using owner occupied loans for investment purposes.

I have added some value to the first duplex so if I refi out of the primary mortgage, can i then get an FHA without waiting a full year?

I have a full-time job and a decent debt to income ratio so i dont really need to use the minimal rental income. Does that make the 100 mile away issue moot? 

I cannot seem to find my answer online and I want to have some knowledge on the issue before i reach out to a mortgage loan officer. Two months ago I purchased my first duplex (house hack!) and I received a conventional mortgage through my local bank. In the next 4-6 months I would love to purchase another home using an FHA loan and move into the new home. Will I be able to get an FHA mortgage? Is there any waiting period required for getting an FHA mortgage after you get a conventional mortgage? Any other potential issues you see here?

Thank you for the input @Harjeet Bhatti and @Andrew Johnson. It's being sold "as is" because it was an REO that was purchased by an out of state Trust for $115k and i dont think they want to lose any more money on it. It's actually pretty good condition, but you are correct in that I should add the renovation budget into the purchase price.

I will definitely run some "what if" scenarios, that is great advice.

I posted about the deal analysis, in case you would like to provide more feedback :) https://www.biggerpockets.com/forums/88/topics/434...

Hello all, I am looking for feedback on my first property. I want to HouseHack a duplex in Memphis, TN. I put down an offer of $114,900 on a 2,500 Sqft duplex(1300sqft 2/1 Downstairs and 1200sqft 2/1 upstairs). The home had a lot of work done on it and a new roof about 5 years ago, so it does not need much immediate work. It needs appliances upstairs and maybe $5000 in work. The downstairs is currently occupied by a husband and wife who are paying $650, but market rent in the area is closer to $750-$850 for that space. The upstairs could rent for $650-$750 if and when I move out. My bank is offering me 100% financing on a 5/1 ARM at 3.55%, which is a whole other discussion on whether i should use that financing. I posted about the financing here: (https://www.biggerpockets.com/forums/49/topics/434...)

Here is a BP Rental Calculator Analysis of the deal if both units are rented out for a total of $1500 - (https://www.biggerpockets.com/calculators/shared/7...)

Let me know if you think this is a decent deal for House Hacking and for my first property. I am going in with a licensed inspector in 2 days to make sure there are no major issues with the home. Any analysis advice or general tips for me?

My bank is offering me a "special mortgage product" because I am an attorney. It is a small local bank in Memphis, TN and it has a good reputation. They have offered me 100% financing up to $250k on a 5/1 ARM at 3.55% or a 7/1 ARM at 3.8%. I understand that the teaser rates will go up after the 5th or 7th year, but I plan refinance to a fixed rate mortgage and be renting out both units by that time. From what I have read, ARMs are best if you plan to sell the house before the rates go up, so that is another possible exit strategy for me. My lender said there is no prepayment penalty and I am free to refinance at any time. I was also informed that if i do not refinance after the teaser period that the rate is tied to WSJ Prime and there is an annual interest rate cap of 2% and the lifetime cap is 6.5% over the initial rate, or 10.05% max.

I am looking to use this loan to house hack a $115,000 duplex. There are currently tenants in one unit paying $650/month and market rent is easily $700-$800 for each unit ($1400-1600 total). This loan sounds attractive because I don't have to put any money down. I can't really afford to put 20% down at this point and an FHA doesn't really look that attractive because of the PMI and the house is being sold AS IS and likely wouldn't pass FHA inspection. I will of course have my own licensed inspector look through the home.

Does anyone have personal experience with an ARM and should I stay away from this mortgage that sounds to good to be true? Is it a good strategy to refinance to a fixed rate loan before 5 year mark?

@Elizabeth Wilson I had a great time meeting everyone this morning. That hour flew by and I felt like I could have kept discussing REI for hours.

Looking forward to next week!

As a native Memphian, I love hearing stories about people moving here and staying by choice. 

I am on the Board of a Young Professionals Association here in Memphis and over the last two years I have seen so many yo-pros (young professionals) moving here. Every month, I am introduced to a handful of new memphians. Most are moving here for jobs with St. Jude, Teach for America, Fedex, IP, Grizzlies, U of M, AutoZone, etc.

These folks make ideal tenants, but most of them (from what i can see) are moving into downtown apartments, of which there are plenty. 

@Stephen Akindona thanks for the response. I have been driving for dollars around midtown and 38111 looking for duplexes when i have the time. I recently spotted a vacant duplex i liked, searched the property records, and then discovered the owner passed away 3 years ago. I am going to try and contact the widow in a civil manner today and ask how i can help.

 @Elizabeth Wilson Wow! Thanks for the heads up on these local meetups. I definitely would like to get involved and attend. It's a little daunting having virtually no experience, but we all have to start somewhere.