All Forum Posts by: Angelina A.

This is a SFR

@Cheryl Packham - Yes, the lender has a provision to allow for my parents to be living in the house while it is a primary residence for me.  I spoke to an attorney about this set-up and they said it was legal, as long as the lender has this provision.  

@Sergey A. Petrov - I decided not to charge my parents fair-market rent after-all.  Technically, I can not "rent" this home to them during the first year, as my loan documents indicate.  However, my lawyer said that there is no law against my family gifting money to me.  That said, I am consulting with a CPA tomorrow to see how I can arrange an annual gifting option from my parents.  After this first year, I will sign new documents with my lender to designate the home as an investment property in the future.

Hello!

Seeking a CPA to assist me with tax planning services for an investment home I am purchasing this summer in Surprise, Az.  

Thank you, 

Angelina  

Hello!

I am purchasing an investment property for my elderly parents to retire in.  My lender is offering me a “Family Opportunity Mortgage” option- a special borrower eligibility occupancy rule in which Fannie Mae expands the definition of a primary residence to allow me to purchase this home for my parents at Principal Residence rates and terms.  

From the Fannie Mae website: “If the parent is unable to work or does not have sufficient income to qualify for a mortgage on their own, the child is considered the owner/occupant” for principal residence properties.

I am concerned about occupancy fraud.  My loan documents indicate that this is a Principal Residence (owner occupied), but I was advised by my realtor to designate the home as an investment property on the home purchase agreement.  Is this the correct designation for this property on the purchase agreement contract? Does it even matter?

Given this scenario, would I still be able to charge my tenant parents fair-market rent?  What legal considerations do I have to be aware of with this kind of investment property which is classified as a Principal Residence?  

Thank you in advance for any insight and/or recommendations. 

Great insight on this market, thank you @Deonte Brown! I actually had a similar idea of getting a property in Surprise as my retirement home and making it a rental in the meantime.  Good to hear that there is such great demand for rentals and now I see that this area is not technically considered rural.  

You were right about the builders having restrictions for investors.  These builders are getting inundated with investors and some just won't sell to them.  I am following up with my realtor today to see if I can buy one of these homes as a retirement home for my parents.  

Hi All,

I’m a SF Bay Area newbie investor seeking my first rental property in Phoenix.  I’ve been priced out of the SE Valley, which was my first choice and now looking at the new builds in Surprise.  My concern about the new builds in Surprise is that the area looks like a bedroom community, far away from the city center and kind of rural. I am concerned about vacancy. 

Has anyone invested in this area? I’m talking about the Lennar, DR Horton, Fulton, etc new builds.   Please let me know your insights on this area.

Thank you!