want to purchase 2nd property. what's my next step?

Question

Just purchased my first investment property I'm in renovation stage at the moment but should be getting it rented out by next week. I want to be on the path on purchasing a 2nd property soon. So what I would like to know is do I take out another mortgage with the same lender? Or with each property I need a different lender?

Brent Coombs · Answer

I remember one thread where the building under question was an (unauthorized) 5-plex because of the later-added basement unit, and the FHA Loan was approved because the seller just put a covering over the furniture and disconnected the toilet (so that it only had 4 livable units). Hmmm.

Might the Seller be forced (or volunteer) to de-commission 3 of the units before Selling?

Please keep us updated. Merry Christmas...

Juan Davila · Answer

@brent coombs thank you for the reply I appreciate it. I assume there will be an issue once appraisal comes out to apprais the property and see six units in the property

Brent Coombs · Answer

Sure (if it's ONLY a triplex according to the city). FHA finance up to quadplexes, but in this case your offer price should reflect what triplexes go for, not 6units. The legalities of then having FIVE separate leases other than your owner-occupied one could be another matter altogether.

Others may chime in about (negative?) experiences they've had with non-conformed conversions...

Juan Davila · Answer

I seen a property thats a 6unit but its legally zoned for 3unit, its a triplex will FHA finance that? Its zoned as a 3unit but being used as a 6unit

Juan Davila · Answer

Thank you guys very much I appreciate it.

George Despotopoulos · Answer

Hi @Juan Davila, like @Chris Mason mentioned, it really makes no difference from a lender's perspective. We're always happy to get new borrowers and see repeat customers alike.

Chris Mason · Answer

Hi @Juan Davila,

It can be same lender, makes no difference. If your gal or guy served to well, call her or him up.