All Forum Posts by: Account Closed

@Ky Logue, if you're referring to something like an FHA loan, you may be able to qualify. Small multifamily properties with 2-4 units are viewed as residential, so you may qualify for an owner occupied loan. You'd still need to determine the DTI allowed, how your self-employed income is viewed, and whether the required reserves would be different.

If you're really thinking about it, it's not too early to start connecting with some loan officers or financial institutions to see what sort of loan options you might qualify for. 

@Kevin Lee, happy to try to help. It can work for some people for sure. Just take the time to understand the fee structure and also check some reviews of the company. 

@Ky Logue, house hacking isn't a technical term but just means a living situation where others are helping pay for your living arrangements. This could be a house you buy where you live, and rent out rooms or a small multi (like a duplex), which you own, live in half and rent out the other half. The basic idea is to have someone else helping pay your mortgage. Then, if you outgrow it over time, you keep it as a rental and move on to the next investment. 

Thanks @Laticia Braxton.

@Robert Tinker, I'd be curious to see some responses, so thought I'd chime in. Were you thinking of established RV lots or setting one up? This strategy isn't my main focus, but I did get fascinated in it awhile back. I briefly needed to store a camper and found a local storage. It was an investor who'd bought a sfh with some land, rented the house, and then partitioned the land as a small RV storage. It was outside of city limits so the zoning rules allowed for it.

@Ky Logue, welcome. This is a great place to start getting plugged in and there are regularly people posting related to Austin. It sounds like you have a great background to launch into this from. Good luck.

@Kevin Lee, it sounds like what you're describing is a form of Turnkey provider. The term turnkey can mean a range of things, but on a general level, it often involves a company that has or finds the rental property for you, then may find tenants, and then may also have their own property management branch to manage for you. This isn't necessarily a bad strategy for newer investors or those who really want more hands off, but there are some things to look out for: 

First, the fees can vary. They might charge a mark up on a property coming right off the MLS, then also charge to place a tenant, and then a % for PM. Additionally, be cautious with just taking their #'s for granted. Some turnkey providers will inflate #'s or make a neighborhood sound nicer than it is.

That said, there are plenty of people on these forums and podcasts who have started with turnkey and have good things to say. Consider doing some research on the company you're considering and don't just speak to people who work for it.

@Christopher M Beck Jr, it sounds like you're taking a lot of good initial steps. From this site, start connecting with people in your market. The duplex house hack sounds like a great option. It could be worth looking at properties that need some work, then taking on some rehab, and eventually moving yourself out and renting both sides. Good luck moving forward.

@Laneetra Miller, I did something similar to @David Lee Hall, III. I used a HELOC on my primary to supply the down payment on an investment duplex. The rents more than cover the first mortgage and the HELOC payment. One suggestion I'd make would be to understand the terms of the HELOC well, such as draw period, whether or not the institution will renew the LOC each year, etc.

Devon, it sounds like your mother is in a position with enough equity that she could do a cash out refi. Maybe you could explore options where she takes out the cash and you take over payment. You'd need a loan product that would loan at 80% LTV. You don't mention your plan for renting the unit. You'd end up with a pretty significant mortgage payment. I'm not familiar with the STR rules for Tahoe specifically, but that might be a way to earn enough to cover the payment. I'll throw in a word of caution though: If you're new to investing, just be careful how many creative strategies/niches, etc. you're trying to bundle into a first investment.