All Forum Posts by: Tom Hastert

good job Quillan!

Ok, I thought I heard that conventionals are recently doing 5% in duplexes for owner occupants.  So don't know where I heard that from.

I also hear that Freddie Mac has a Home Possible Loan and is doing a low down for owner occupant duplexes where the PMI falls off at 78%LTV

thanks Daniel, why is everyone around here recommending the FHA.

I thought it was because only the one year rule applied to FHA only and not conventional, but if conventional loans have only one year rule, and you can buy a duplex as long as you live in one side, for 5% down, then would save on having to refinance the FHA loan later if you just start with the 5% down conventional loan, and the PMI falls off after principal or appreciate hits 80% LTV.

Right? What is the big deal with FHA when you should think ahead down the road for your second purchase

Why is it always mentioned you househack using an FHA loan and not a conventional? FHA is usually a higher rate and upfront mortgage insurance premium, which needs to be refinanced off later requirement more closing costs when you do your second duplex house hack.

Is it because the one year requirement to live in the duplex?  Do conventional loans also have the one year live in rule requirement before you can move out and do your second house hack?

I tried finding lenders to explain my strategy, and the lender told me she would have to "convert my first loan back to an investor loan".  This sounds like she is going to call my loan due when I move out and do my second househack???

So can someone help me understand this and what do I do to make sure I am getting into this first one correctly with the right lender so I don't get into a snag a year later when I want to buy my second househack and move out of my first one and into the second one.

thanks

Tom

For those who have serial house hacked: Please tell me about your first one and how you did it, but also how you did the second one.

I am planning my first move in duplex house hack, but I always wondered about how you accomplish the second one a year later. Kind of like playing pool where you are always thinking of your second shot when you take your first shot.

What are the steps for going from your first duplex to the second duplex (or triplex/fourplex even) a year later?

Morgan, you said you moving into your second duplex. Please tell me about your first and how you did the second.  I am planning my first move in duplex house hack, but I always wondered about how you accomplish the second one a year later.  Kind of like playing pool where you are always thinking of your second shot when you take your first shot.  What are the steps for going from your first duplex to the second duplex (or triplex/fourplex even)

why is FHA the way to go? the rate is higher, the upfront PMI means more closing costs, then you have to refinance it into a conventional later if you want to repeat the process,

Any comments on my lender comments?  About the one lender telling me that if I moved out later like a year or 2 after my first purchase and do another, they would have to convert my first loan to a rental loan????

I just posted another about rate comparisons. why is Better.com offering a 30 year FHA at 5.75% on their online. At Bankrate.com says they are much lower

why are Better.com rates going up higher than those on The Mortgage Reports news:

Better.com FHA is say 5.75 FHA when The Mortgage Reports say 3.3%

what kind of rates are you getting FHA and/or conventional 30 year fixed and who

should I be using online or local lender

I think we need to designate a forum just for this topic. I want to start investing and have been watching Brandon on Webinars for a while. I am renting now and I am finally completely out of debt and have been saving much better and my credit score is now over 700. My goal this time next year is to have enough for down payment, closing costs, and some left over reserves for maintenance and repairs.  

I have read Set For Life Scott Trench and I just got The House Hacking Strategy Craig Curelop.  I want to do my first move in duplex house hack.  But have some more finer detailed questions.

Use Realtors or direct marketing to duplex landlords. 

Use local or online lender? fha or conventional?

The reason I ask these questions is because I reached out to half dozen realtors and lenders and this is what I am finding out. Most of the realtors are just sending me what is already listed, and in my price range there is about 8 of them located in not very good places in town and have been on the market long and are the large houses that have been carved into duplexes and triplexes with out dated funky heat systems and stone foundations. I would prefer a 60's-70's side by side ranch with more modern forced air HVAC. Won't realtors go and find me one? because if they are just showing me what is already on MLS - well I already can see those see because realtor.com and Zillow and a local associations website is pretty close to what is currently listed

I wonder if I should skip a realtor and direct market to landlords in areas I want to live. One realtor asked me they would work with me if I use him exclusively, but I don't know if that means I would have to pay a buyers broker commission, and like above if he aint going to go farm me up one I want, then why bother?

Ok, now the lender questions. I also asked lenders about my plan to move into a duplex as an owner occupant. Some said I was still an investor and wanted 15 percent down, and I had to remind them of the FHA treats 2-4 units as owner occupant loans, like they didn't know anything about this way of buying a duplex.

Another lender told me they would give me a 5 percent down for the first duplex but after a year or 2 later when I wanted to move into another duplex for my second one, they would have to convert the first loan back to an investor loan? I mean what? he is going to call my first loan due or something?

I also thought if i could get the conventional loan I would get a lower rate than the FHA and would not have to refinance it later for my second duplex or triplex house hack.

what am I missing here. I want to be a serial duplex house hacker and then work into a live in 4plexe house hack ever couple of years.  Is this possible and how? and who if anybody should i be working with because I am kinda like getting some obstacles.

Thanks 

Tom

I have been on BP about a year, and live in Topeka.

I am glad to know you guys are here too.  I starting thinking that I need to do something as I am getting older, and this is it.

read a lot about househacking, and think buying a duplex and live in one unit and rent the other sounds good to me.

How do you guys in Topeka recommend I find these.  I don't think I can afford the new ones out west, and will have to be under 100K older type conversion houses.  I looked at some and they seem kinda old and scary foundations and locations.

Do you know of any investor friendly realtors here in topeka, and ways I can find these, and what to look for and what to watch out for. 

Also, are there any meetups, ways to connect, in town?