All Forum Posts by: Rebecca Belnap

@Tyler Allan You will manage to sell it just fine through Homie, but that will mostly be because it is such a strong sellers market that everyone is desperate for any available home on the market.  The real test of Homie will come when the market starts to switch to a buyer's market.

@Andrew L. I'm house hacking a triplex in Lehi, and technically it doesn't cash flow.  We have to pay $125 per month for our 4 bedroom unit.  

On a triplex or 4plex, FHA with 3.5% down is best way to go. I do know of one grant program (the Chenoa Fund) that will do a grant for the 3.5% down on duplexes on a "case by case basis". It's the only no money down program I have found that will do duplexes or homes with legal accessory apartments.

@Kaleb Larsen Since you said you paid 3.5% down, that means you have an FHA loan. The main way most people get rid of mortgage insurance is to get the home appraised and if you have 80% equity you refi with a conventional. Some credit unions will allow you to refi the entire loan with a HELOC but remember that it will be variable, but there is no MI.

Another option is a Hybrid of the 2. Refi conventional for the 80% and pull equity out with the HELOC.

If I was me, I would refi with the 80% but as non-owner occupied and rent it. Yes, it leaves a lot of cash in the property, but it makes it easier to cash flow and keeps you safer if the market turns. If it appraises for $170k you have the ratio already. Then there are no money down programs to buy a new home to live in: The Utah Housing NO MI loan is a good one and has a lower payment than FHA since they drop the MI.

I have purchased the essentials course and I am finding it very helpful.  It's $2000 and what I have learned will save me at least $10,000 this year alone and I have it for life.  I will probably upgrade to the full membership for another $18,000, but I have an agreement with my husband that I can't spend any more than I have earned due to what I get from the essentials course.  Time will tell.

We aren't new to real estate either, but experience is VERY expensive to learn from.  in 2007 to 2009 I "spent" a lot more on experience than any education program costs.  I am getting as much or more from bigger pockets than I am getting from Renatus, but here you have to know what to ask and some answers are wrong.  Renatus sets it up in more of a basic format and teaches you step by step with less gaps in your training.  I also go to the local meetup groups and get a lot of info there.  It isn't a matter of which to do, more of learn wherever you can find good info.

@Alan Walker We were talking about it 2 saturdays ago, but I'd love more info in writing if you will send it my way, thanks.  Let me know if you don't still have my email.  

@Brian Christensen The easiest place to start is to go to the city zoning department and ask them every question you can think of.  Tell them what you want to do and ask them where it would be allowed.  Mention that you want to make sure you do it legally and they will let you know.  If they tell you know, ask if there is a zone that does allow it.  Keep asking questions until you feel you understand.  

Don't pay a dime on drawing up plans until you are almost ready to apply for your building permit. Springville has a very nice zoning department.  Just make sure you get to talk to the actual people who make the decisions, the city planner is often a good place to start.  You get a lot of wrong answers when you talk to the assistants.  (Do NOT tell them I said that, I know they do their best) We talked to one of the assistants in Springville about a house that had 2 extra buildings out back that were rented.  The assistant said she knew the house and that the approval was just a formality and it would be good to go in a few days.  We asked for it in writing.  15 minutes later we were told it was a completely different house than she thought and that the family selling it had been informed that both buildings were built without a permit and that one needed to be removed and the duplex could be turned back into a garage. 

So my point is, go talk to the city.  They are very nice over there (110 South Main Street, 2nd floor) They will tell you what you need to know and they don't expect you to know anything so you can ask all the questions that you need to.

One accessory apartment usually isn't too hard.  It would be very difficult to legally get a city to agree to 2.  Most cities in utah county aren't to difficult to work with but I would make sure you have it in writing from the city that what you want to do is allowed while you are in your due diligence period.  Orem, springville, spanish fork, lehi, AF, PG, and Eagle mountain all have pretty easy to work with zoning dept.  Saratoga Springs, Payson, and Provo are difficult.  Haven't talked with any others.

To make sure it is all done legally, you need to check with the city you plan to buy in.  We recently checked on Payson and they were very difficult.  Gave a long list of items to be done.  The entrance needed to be separate, all plumbing, electrical, and heating would need to be separate and a firewall would need to be put in (mostly just an extra layer of drywall in the ceiling.  They also said that the zoning didn't matter even though it should have been zoned legal duplex.  They were not going to allow it.  We moved on.

Murray said it would allow a legal accessory apartment in the basement, but it could only be half of the basement.

I know of a lot of investors who have not bothered to let the city know what they are doing.  Some cities look the other way for a long time and only give you a problem if a neighbor complains.  Provo is pretty tight on enforcement, but most others are not.

@Adam Harward Welcome to Bigger Pockets.  There are a lot of us from Utah on the site and most are happy to help.  

I'm just getting into commercial lending and have been reading up on what is available, but haven't done one yet.  Here are a few things that I do know:

1.  Yes, there are companies that do commercial fixed rate loans.  I will PM you.  5.25% looks about right from what I have seen for a 25 year fixed rate loan.

2.  I think they will let you sell something but only to pay down the debt, not to cash out.

3.  "Due on sale clause." No they can't call your loan due at any time, this just means that if you sell the property and don't pay off the loan, they have the right (but not the obligation) to foreclose.  And no, they will never waive it.  It just means that you are in violation of the contract if you sell the property and don't pay off the loan.  People still do it and call it "subject to" or a wrap-around mortgage, but they are running a risk.

4. Yes

5. I would change it to "The buyer will receive prorated rent for the balance of the month at closing.  All security deposit funds will be transferred to the buyer."  Don't forget about those either.

@Coco Zuniga That is a big pickle.  You are looking at 7 years for conventional (3 with extenuating circumstances, 3 years for FHA and USDA, or 2 years if you can go VA.  But those are not your only options.

Seller financing could work well for you, and so could partnering. 

There are a few non-prime (new term for subprime) lenders who aren't too bad.  Velocity is one who could work, but they require that you own your own home before they will lend to you for rentals.  Angel Oak will lend both on your own residence and investment properties.  

If you aren't busy tomorrow, you should go to @Jeff Rappaport 's wholeselling class they are having tomorrow at the Thai Siam restaurant in Draper.  He gets about 50 to 75 people there and it is a good place to network.  I think it starts at 6:30, and I know he posted an invite on another bigger pockets link.  What you really need is networking with live people who have offers and ideas.