All Forum Posts by: Aaron Hunt
Aaron Hunt has started 10 posts and replied 645 times.
Post: Tenant sees a ghost. What should my response be?
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As long as your tenant doesn’t become a ghost like mine do when I ask them for rent...
Post: Underwriter denied me for potential owner occupancy fraud
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Originally posted by @Mattaniah Yip:
@Joel Owens Thanks for your input. However, we are doing FHA because as far as I know there aren't any other programs that offer a low down payment for a multifamily, while still owning another property.
I just discovered Home Possible via Freddie Mac thanks to @Christian Bachelder. However, it seems you cannot own another property unless certain stipulations which we do not meet.
If there is one please advise. My credit score is in the high 700's. Having a marginal credit score is not the only reason someone may opt for FHA.
My goal was once the new property is to reach enough equity, I would refinance out of it into a conventional. This is the same thing I did with my current property.
If you know of any 5% conventional programs for multi family please advise.
Thanks everyone again for all of your input and advise.
If it’s a 4-plex (or less) then the 5% conventional should still work as it’s considered residential.
Just ask around credit unions, big banks, whatever. Someone will bite.
Really shouldn’t be that difficult. You have all the files ready to go.
Post: Am I ready to buy another property??
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Originally posted by @Jason Waldo:
Live off her income, and save/invest yours. Even better!
Post: Can spouse's rental income apply to my DTI?
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Originally posted by @John T.:
You said the rental property was in her name...but now you’re saying your name is on the title.
If you’re actually on the title, then you own half the property so I don’t see why not.
Post: Can you gift part equity of a home each year to avoid gift tax?
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Originally posted by @Account Closed:
@Aaron Hunt Good question. One basic principal of gift tax is that the donee (yourself) will never owe gift tax. Gift tax is paid by the donor (in laws) but only once the life-time limit has been exceeded. With proper planning gift tax can be avoided through use of the annual exclusion ($15,000 per person, per recipient in 2018, first increase in 5 years).
There most likely will be tax consequences if you sell after receiving the gift depending on the original basis (purchase price) of the donor.
So...ironically the place is in Charlotte, NC.
Any recommendations for an investor friendly RE attorney who could help us get this done?
Post: What would u do with 50k?
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Originally posted by @Jim K.:
If I had $50,000 in cash, I would very wisely invest in my real estate education. I would look around for good seminars to attend and programs to take advantage of. After all, I would probably be able to make my money back on my first deal! And the contacts I would make during these seminars would be absolutely invaluable.
As for which seminar program to attend, there's only one hard-hitting, serious choice for committed professionals, but I can't say what it is here, or I might be accused to promoting a specific product or brand of seminars.
McRib International
Post: Am I ready to buy another property??
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Your income seems solid at $75k, but what’s with the wife’s at $20-25k?
Otherwise, investment strategy & numbers seem pretty sound.
And home-schooling is just something I’ll personally never understand, unless you live in the boondocks.
Post: Underwriter denied me for potential owner occupancy fraud
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Originally posted by @Tony Hightower:
Unfortunately, what we believe don't matter. FHA is always a PITA anyways.
Post: Underwriter denied me for potential owner occupancy fraud
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Originally posted by @Mattaniah Yip:
It is financed with a lot of equity.
Originally posted by @Mattaniah Yip:
It is financed with a lot of equity.
First home, larger and financed as owner occupied.
Second home, down the street, with one less bedroom and financed as FHA.
I wouldn’t have even bothered in that scenario...slim chance of getting that through.
With all that equity in Prop A, you’re better off pulling dead equity from Prop A, and buying Prop B with 20% down and sliding by conventional. Or probably could even do 5% conventional and still get by underwriting.
Post: Can you gift part equity of a home each year to avoid gift tax?
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Originally posted by @Account Closed:
@Aaron Hunt Good question. One basic principal of gift tax is that the donee (yourself) will never owe gift tax. Gift tax is paid by the donor (in laws) but only once the life-time limit has been exceeded. With proper planning gift tax can be avoided through use of the annual exclusion ($15,000 per person, per recipient in 2018, first increase in 5 years).
There most likely will be tax consequences if you sell after receiving the gift depending on the original basis (purchase price) of the donor.
Thanks Josh! Appreciate the information.
We won't be selling, but instead plan to tap into the equity to split with the other siblings, and keep a HELOC open for any future investments we wish to pursue.
Most likely we will let the cash flow pay any borrowed money back down and include it in our future estate/trust and pass it down to our children as a gift from their grandparents.