Hi Brian. Are you going to be living in the house that you purchase in western MA? I believe that is the only way to get the low down payment FHA loan. If you are going to continue living in NY and buying in MA you would have to most likely come up with 20% down payment. Of course there are other ways to finance properties than just your basic bank loan which you can find more information about if you search for "creative financing" here on BP. I'm not familiar with the LLC part of your question so I will leave that for other members to answer but you would most likely want to talk to a lawyer and a CPA to talk about the advantages and disadvantages of an LLC. Goodluck in your search for a property.
This is the tricky part Kevin Andrews. I plan on having a unit for myself up in MA. I work in NYC only three days a week and I'm sure I'll be in MA the other four working on the building and finding the next one. So wouldn't I be "living" there?
Yes I suppose you would be if the unit for yourself is part of the house you are purchasing. Otherwise if the mortgage company finds out that you are lying to them it could constitute mortgage fraud. I only know because I asked a similar question when I first joined BP.
Yeah, this wouldn't be a lie. I would be keeping a unit for myself. I guess I just don't know how banks define "place of residence".
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.