All Forum Posts by: Caleb Smith

@Chris Mason thanks for the input. I figured something like that would justify as “reasonable”. The commute part is actually, a real factor in my case. My situation might just be a case of “bad” brokerage. I may focus more energy into shopping around the area lenders to see what each will and will not do, and to better understand my opportunities.

Thank you for your input and time.

@Alyssa McEwan

As some have mentioned follow Zillow, Redfin, realtor.com, and local realtor websites to get updates on markets, trends, etc.

I use Zillow and Rentometer for assessing rental comps in the area and compare them to existing sales and listings for investment potential.

I use the “DealCheck.com” app for down and dirty analysis on properties. It will pre-plug in info on many properties, you can edit criteria, then analyze things deeper, if it passes your qualifications.

If something shows potential, I dive deeper into the property and use the Bigger Pockets Calculator. I’d recommend it if you are serious about investments. The Pro Membership is pennies on the dollar per day for what it offers.

Hope that helps. Stay active and analyze properties weekly, if not daily. A good deal will show it’s face, if you know what it looks like.

@Justin Tahilramani

Go for it, and think about applying for a second on the home while you are at it. You’ve probably realized some equity in the home since you purchased it, and it will free you funds in the event that you wish to make other investments.

Plus, you will still be able to execute the primary at the existing loan balance + other perks.

Scenario:

I'm trying to use the FHA loan strategy to acquire a home each year.

Personal credit is great, and my primary residence has plenty of equity, and income is sufficient for purchase of additional home.

Problem:

While attempting to get pre-approvals for loans, the FHA lenders are questioning that I will "down size" and move into homes of lesser value than my existing primary residence.

Mortgage Brokers suggestion:

"Get your primary residence rented out, then go rent a place for 6 months. Then maybe they will approve an FHA."

Question:

1)Has anyone else faced this issue when trying to apply this strategy on an annual basis?

2) Is there a better solution to prevent having to rent from a third party prior to purchasing a second property under an FHA?

3) Any other suggestions for applying the FHA strategy?

@Hud Floyd I’m with KCFD, trying to make my way up the real estate ladder. Congrats on your progress. I’d love to hear more about your journey.

@Christian D.

I’d agree with many of these people in the comments: cash out on the equity, especially because of the tax break. Especially since you are thinking long term before going all in on rental homes. When you find a great deal, you can execute. Maybe a purchase every year with minimum down.

On the other hand, leveraging your equity with a HELOC will allow you a large revolving line of credit. Something that you can BRRRR into great cash flowing properties.

Good on ya for taking care of your family member; thats admirable.