Construction Trucking Owner / Operator · New Bedford, MA · Member since 2015 · 133 posts · 37 votes
We're looking for a multi to FHA. I'm curious what the community thinks about this strategy. What are some of the pitfalls or problems we could face? Do the potential rewards out way the potential headaches?
Real Estate Agent · Erie, CO · Member since 2014 · 1k+ posts · 512 votes
10y
I guess to answer there is a little more detail needed. Is the plan as simple as just getting a multi with FHA or are you trying to specifically find on that is foreclosed or being sold short?
Construction Trucking Owner / Operator · New Bedford, MA · Member since 2015 · 133 posts · 37 votes
10y
sorry @Dan MackinI guess I rushed that post. We want to get a multi with an FHA loan and then live there a year and acquire another (house hack). I'm having a hard time finding multis in my area market that the #s are workable. Sellers are simply asking too much and houses seem to be sitting because of it. I have noticed several foreclosed multis that seem to have moved a bit quicker.
I'm trying to formulate a plan of attack. We should start shopping for a mortgage next week. (been waiting on my accountant to finish my taxes) I'm thinking maybe we would get a better deal if we were to look at foreclosures or shorts. I just don't know the pros and cons of that approach. I also don't know how to approach an offer on a bank possessed property. Do i need to know what was owed when the property was foreclosed on or do I just make the offer according to what the property is worth?
Real Estate Agent · Erie, CO · Member since 2014 · 1k+ posts · 512 votes
10y
I'll start with short sales. Not sure how the market is where you are, but here short sales are not too common and only slight deals when they do come up. If you do find one that is a good deal be prepared to wait. It can takes months to over a year to make any progress with short sales. If you do want to go that route work with an agent who has done them before. You don't want to be the guinea pig for someone in that process.
For foreclosures it can be a little different. If they are listed on the MLS then the process is pretty similar to any purchase. Sometimes the home is not able to be lent on in the current condition so you'd need to get a rehab loan like a 203k which in their own right can be complicated. Again, use someone who has actually dealt with them before (lender). If it's a foreclosure that is at auction that all depends on how auctions work in your area. A quick search should bring up those rules and regs. Usually at auctions they'll have a base that it starts at just like any other. Your job is to know what it's actually worth so you don't get caught up in the hype. Also in lots of auctions lending is not accepted so you may be out of luck there.
There's probably something I missed in there so keep asking questions.
Construction Trucking Owner / Operator · New Bedford, MA · Member since 2015 · 133 posts · 37 votes
10y
Yes @Dan Mackin about bidding.. I don't want to bid too much obviously and screw myself out of money. When a bank forecloses do they generally let the property go at a discount to get it off their books or are they trying to recoup what they lost from the previous lendees? Will they try to get market value??? Long/Short.. What's the best way to get the sale at the best price from a bank?
Construction Trucking Owner / Operator · New Bedford, MA · Member since 2015 · 133 posts · 37 votes
10y
Yes @Dan Mackin about bidding.. I don't want to bid too much obviously and screw myself out of money. When a bank forecloses do they generally let the property go at a discount to get it off their books or are they trying to recoup what they lost from the previous lendees? Will they try to get market value??? Long/Short.. What's the best way to get the sale at the best price from a bank?