All Forum Posts by: Ivan Schmidt

Here's the situation:

The house across the street from my medium term rental just got bought by some flippers and they're gutting at a rapid pace. I have the contact info for one of the investors and want to make an offer. I'm a rookie with off-market deals and wanted some advice before I make the call.

•  I have ~ $50k to throw at a deal
•  Sale price will probably be about $200k
•  I can cashflow >1% faster than anyone else in the area
•  Probably won't qualify for a conventional loan due to travel nurse income
•  Excellent credit and solid income

Offer 25% down owner financing with a one year balloon and DSCR once I get it rented? What terms would be enticing to a flipper? Obviously need more info from the investor, just want to have a plan before I reach out.

Thanks!

The rules state that at the time of closing, you should intend to move in within 60 days, and live there for one year. Not much specification is given past that. However, in regard to FHA-insured investment properties, I was able to find the below clause, which is somewhat revealing as to how this would likely be viewed in the case of an investigator sniffing for fraud in an owner-occupied property.

"Investors must assure FHA that investment properties they purchase will not
be used for hotel or transient purposes, or otherwise rented for periods of less
than 30 days."

So signing an FHA loan with the intention of renting on Airbnb at all is pretty risky, especially when this post is here to constitute proof that it was premeditated and not due to a job relocation, etc.

Curious to see if my interpretation is right, there are others on the forum with more savvy than myself.

Their quotes are enticingly low, but I'm pretty sketched out by how I can't find a single post-claim review.

I would estimate about $12k-$15k depending on appliances and your design choices. It can be done cheaper if you get lucky on Facebook marketplace and have the extra time. Keep in mind you will severely limit your applicant pool if you choose to not allow pets.

Thanks for the great replies everyone. Valuable info in pursuit of more productive discussions with lenders. My employment situation is very non-standard, it takes a lot of explaining.

@Jack Martin Sending you a PM

I am frustrated with the poor quality of information for my situation — maybe y'all can help!

My permanent address (tax home) is near Knoxville. My work will soon be taking me to North Carolina. I am fully prepared to buy a house in Knoxville, but lender says conventional primary residence loan is not possible unless I work within one hour of town. Is this requirement set in stone, or should I spend tomorrow calling a ton of different lenders?

I have 2+ years of stable income, $50k liquid, reserve funds, and 740+ credit. Would really like to avoid 25% down if at all possible

Hey BPeople! First post, woo hoo!

I've scoured the City of Knoxville's zoning code and supporting documents multiple times, can't seem to find any guidance on how many non-relatives can occupy the same house in Residential Neighborhood districts. The language seems to be focused solely on development and construction standards. The only mention of occupancy that I could find was an archived memo from 10 years ago, with a nebulous statement about how "generally, three non-relatives is okay," or something along those lines.

I'm currently living in a 3BR SFH with three other people; my landlord says there is zero guidance and occupancy is not something that is ever enforced, even during her previous appearances in eviction court.

This is mind-blowing to me, as a refugee from another college town with absurd anti-landlord & anti-AirBnB rules (cough, cough Auburn, AL). Could I really buy 5BR and rent them all out individually?