All Forum Posts by: Tim Lyons

Can I buy a triplex as an "owner-occupant", rent out two of the units, leave the other unit vacant for a year, change my address to the triplex, but continue to live in my primary residence?

I know this is probably illegal, but would anyone even know? Could this work?

I know how horrible it could be dealing with deadbeat tennants, crime, vandalism, evictions, collecting rent, etc.

BUT, when $30K buys the whole house, it seems like there could still be opportunites to cashflow, and you can get into the game cheaply. Sure dealing with the BS above is going to be a burden, but if it's between that, and being a 9-5 worker bee, I'll deal with the BS instead.

Should I just hold out until I have enough cash to buy a cleaner property that will attract decent tennants, or should I actually consider buying a $30K property in a horrible neighboorhood since I can buy now, and POTENTIALLY start cash flowing now?

Hello all,

I am a homeowner looking to supplement my income by purchasing a second home, preferably a duplex, and renting it out. The only problem is I only have $15K saved. I am looking to purchase properties in the 50 to $60K range. So I have the down payment saved but nothing for closing costs or a contingency/reserve. I feel I would need closer to $30K saved to be able to start looking at buying. I can only save about $10K a year at my present job, and there's little I can do to supplement my income short of taking on a second menial job. I don't want to have to wait another two years to buy a rental. Are any of the following viable options ? :

1) Take out a personal loan to serve as a contingency, and if I'm denied a mortagage due to debt/income ratio, pay the loan off immediately.

2) Take out a 7 year personal loan for $25K, combine with my savings, and purchase a $40K property in a bad neighborhood that needs work.

3) Save for another 6 months, neogiate the seller pay closing costs, and hope $20K in savings leaves enough contingency to satisfy a lender.

4) Find a lender that only cares about income and down payment, and not any contingency/reserve??? Is this possible?

I know it sounds like I'm cutting it too close and going broke by buying a property, but I have a stable enough job, and extensive lines of credit to use for major emergencies, if it came to that.

Many thanks. 

3) Try to get