All Forum Posts by: Brandon Kingcaid

I'm looking to make a first time REI and read a BP article about using an FHA loan on a duplex. It states "Unless you own 30% of the property at the time you rent it out, you will not be able to get another loan until you have two years of landlord experience with that home on your taxes".

Is this true and is there a way to bypass this requirement if you want to make a subsequent purchase before you have 30% equity in the property?

@Ryan MacDonald Thanks for that advice! It does look like I’ll need to buy in SA to keep the price lower, so I will most likely move out there and find a job first, then get started on this project.

@Ryan MacDonald What about in the case where I will be living on the property for one year for an FHA loan? Would it be reasonable to buy a new construction at the limit of my buying power or should I look for a smaller used duplex? Or another option is to build my own smaller duplex.

@Brent Paul

I'm thinking about building my own, so it can be a bit smaller but still have all the upgrades. I see I can use an FHA one time close mortgage to finance home construction.

@Jerry Padilla

Did you live in it? FHA loan?

@Mike Castellow Yes please, and thanks! I’ll PM you.

@Kevin S.

I was referring to a higher mortgage payment, because you are only putting down 3.5%. This lowers your profit each month when you go to rent both duplex units. And yes, less headaches with a newer home since it's my first REI.

Hello, newbie here, instantly loving this process of research, analysis and deal hunting :) I'm looking to make my 1st REI!

It would seem that with the higher payment associated with an FHA loan, it is likely to have to accept a lower profit margin when purchasing your first REI.

How low in profit would you go on rental income vs mortgage payment?

Would you only consider appraised home value vs purchase cost or would you also take into account expected appreciation of a new upscale subdivision since the intent is buy and hold anyway?

I'm buying my first duplex and I'll have to live in the house for a year, so I'm leaning towards getting a nicer, newer place that I'll enjoy as my first REI and landlord learning experience.

Would really appreciate hearing everyone's experience on their FHA loans starting out. Thanks in advance!

Brandon

Hi I'm new to REI and looking for options on new and used duplexes in the New Braunfels / San Marcos corridor. How do I find these?

I was interested in New Braunfels for the lower price point and because there is a lot of development going on. But I would be open to San Antonio area.