Updated about 8 years ago on . Most recent reply
Next step to home investment/fiancee happiness.
Hello all, I live in Asheville NC and own in one of the hottest areas in town. West Asheville. I bought my 1929 craft bungalow two years ago and have since added 300 sq. Ft to the back, subdivided the front of the house to use as a rental space and finished off a basement area to rent out as well. Essentially having all of my bills covered and already making a "profit", (should I decide to take payment from the account and not save the extra toward the next house.)
My question is this: because I bought this house as a first time home buyer and got an fha loan, I'm having a hard time either refinancing this house as a multi unit investment property, or getting a new loan for a second home rental property.
I also own a successful handyman business working with RE professionals doing prehab and post inspection report checklists.
Now, my second concern is that I've recently tried to bring my girlfriend in on my investment plan and portfolio future who is much more interested in having a place of our own in the near future. We've capitulated and agree that finding a house with land big enough for me to use the equity in my existing house to build a small guest house to rent out may be the best option.
My request to all of you, is I'm struggling to find a way to make all of this work and would like to reach out for suggestions and advice on this situation.
I'd like to continue my investing future, but can't see paying for my own mortgage when I can have renters do it for me.
Most Popular Reply
#2 General Landlording & Rental Properties Contributor
I would not purchase a home with the intention of building a guest house. There is far greater value in adding a secondary suite in the basement of a bungalow. It will have better resale appeal.
Can't help with financing advice but do advise you to have a solid pre nup in place before you marry. Investors that start before they get married need to make sure, legally, that their investments, pre marriage, remain theirs after the marriage tanks. May be a good idea to have your fiancée finance and have the joint home only in her name. Easier for both parties to go their separate ways.
I know your marriage is not going to end but 50% do.