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All Forum Posts by: Account Closed

Account Closed has started 8 posts and replied 22 times.

Quote from @Ivan Schmidt:

The rules state that at the time of closing, you should intend to move in within 60 days, and live there for one year. Not much specification is given past that. However, in regard to FHA-insured investment properties, I was able to find the below clause, which is somewhat revealing as to how this would likely be viewed in the case of an investigator sniffing for fraud in an owner-occupied property.

"Investors must assure FHA that investment properties they purchase will not
be used for hotel or transient purposes, or otherwise rented for periods of less
than 30 days."

So signing an FHA loan with the intention of renting on Airbnb at all is pretty risky, especially when this post is here to constitute proof that it was premeditated and not due to a job relocation, etc.

Curious to see if my interpretation is right, there are others on the forum with more savvy than myself.

Legal disclaimer:

First of all I own 0 properties and have 0 mortgages. Second of all this is a purely hypothetical situation that I was curious about the answer. Just wanted to make sure I am doing my due diligence with research as seen by in the last sentence “not over stepping any rules”. 

I understand with an FHA loan you must live in the property for the first 12 months and move in within 60 days of closing before making it an investment property. I am trying to find an article or any information about how many specific days do you have to be living in that property during the first year? I want to rent out some rooms (maybe Airbnb) for a couple weekends in the year when there are big events nearby and I’ll stay elsewhere those few weekend. I want to be cautious that I am not over stepping any rules in the FHA loan. 

Post: Can I rent out a USDA Guaranteed Loan SFH?

Account ClosedPosted
  • Posts 23
  • Votes 12

I am considering buying a beach house with a USDA loan and living in it for a year. Can I rent it out after I live in it for year (or less)? I am finding conflicting information online. 

Post: Inspection report estimates- first time home buyer

Account ClosedPosted
  • Posts 23
  • Votes 12
Quote from @Robert Dangelo:

I am happy to help Katheryn. 


 Thank you so much! 

Post: Inspection report estimates- first time home buyer

Account ClosedPosted
  • Posts 23
  • Votes 12
Quote from @Aaron Schrader:

I can take a look.  What kind of feedback are you looking for- are you prioritizing repairs or wondering how much something costs?  


 Honestly both.. I asked the inspector to send me a report on what urgently needs to be repaired as well (I’m assuming the roof?- but he will let me know later today) but just need some kind of ballpark estimate and overall feel for the property as this is my first investment and want to make sure I am not overlooking anything. If you shoot me an e mail I can send it 

Post: Inspection report estimates- first time home buyer

Account ClosedPosted
  • Posts 23
  • Votes 12

Anyone I can $$ to look at my inspection report and assess- I can send you the document via email- first time home buyer here trying to make a good investment. terbo22r @ gmail. com thank you so much

Post: Estimate for SMOKER Rooms Renovation

Account ClosedPosted
  • Posts 23
  • Votes 12
Quote from @V.G Jason:

Go on thumbtack, request 3-7 quotes from people that carry insurance, liability, and accept credit card(if they apply the 3% fee, that's fine). 

Get hard quotes for them. See which you feel comfortable with and move on from there. Paying with credit gives you an extra layer of liability protection. I've done probably 4-5 renos in my lifetime with my personal houses, and each time the credit card has bailed me out. I've always had a contractor stiff me if something was done wrong, or they damaged something and wouldn't accept fault. 

They all learned the hard way.  We can disagree, but I'll have Chase or American Express make up their own mind. And each, and every, time the bank was on my side after sending an inspection over to see if my claims were valid. And they all came back and did the job again.


 Thank you!!

Post: Estimate for SMOKER Rooms Renovation

Account ClosedPosted
  • Posts 23
  • Votes 12
Quote from @Randall Alan:
Quote from @Account Closed:

One unit in the duplex, which is two beds and two baths is a smoker room- and I’m looking to get it renovated, but I don’t want to get ripped off by contractors. What is an average estimate to rip out the carpets and replace them with laminate wood flooring, paint all the walls, and anything else..?

Your question is going to vary widely based on the size of the space, and your location and exactly what needs to be done.  You can pull the carpet out yourself and use a box knife to cut it into manageable pieces if you are looking to save some money.  As for flooring, I would say the cost of the flooring itself (plus any sub flooring material if necessary), plus about $1.50 - $3/sf to install as a ballpark guess to install laminate / plank flooring.  But it can depend on if it is glued down, or floating. There are just variables we can't know about your situation, so prices can vary widely. We paint our properties ourselves, because, again, it's not terribly hard.  

I would search for a couple of handymen to give you a quote, as well as a couple of painters.  Any full time painter is probably going to be much closer to retail than a reasonable handyman. If not careful though, you can get what you pay for going cheap.  

Be sure to really lay out what you are looking for... like, is the trim going to be painted?  The doors? The ceilings?  Is it going to take 1 coat or 2?  Make sure they are responsible for cleaning up any mess they make (like if they walk through the paint and track it around, or mess up the ceiling painting the walls, get paint on the door hardware because they were lazy and didn't take it off, etc.)  We have hired handymen on both an hourly and job basis... sometimes it's a win, sometimes its a fail.  

Setting expectation is critical.  If you hire hourly there is no incentive to go fast, and if you hire by the job, there is less incentive to dot the I's and cross the T's because they will want to get out of there fast.  Whatever you do - don't pay completely up front.  Offer to buy the materials up front.  More than that you risk them not even wanting to start the job.  If you pay them in full, there is no reason for them to show up or finish the job.  We will pay ours along the way (as the job gets done, we meter out the pay).  You can break it up by room... for each room that is completely finished I will pay you 1/x of the money - with x being the number of rooms to be painted.  The quality expectation is that there is no break-through color from the previous paint showing, and that the trim has no drips from the walls, and the ceiling has no paint from the walls either, etc.  Be specific and you will be closer to happier than sad when done.

Hope some of it helps!

Randy  
Thank you so much!

Post: Estimate for SMOKER Rooms Renovation

Account ClosedPosted
  • Posts 23
  • Votes 12

One unit in the duplex, which is two beds and two baths is a smoker room- and I’m looking to get it renovated, but I don’t want to get ripped off by contractors. What is an average estimate to rip out the carpets and replace them with laminate wood flooring, paint all the walls, and anything else..?

Post: Buyer pay for Title Policy?? In this market??

Account ClosedPosted
  • Posts 23
  • Votes 12

I’m offering $50,000 lower than the ask price for a duplex… there’s probably around 10K in renovations, I need to do, do you think I should offer to pay for the title policy even though nine times out of 10 the seller has been paying for it In this current market? Also, the listing has been up for almost 3 months.