All Forum Posts by: Conner Olsen

Hi friends! Considering a rent-by-the-room approach for a property we may purchase. For those who have experience with it, how did you price your room? I looked on rentometer, apartments.com, furnished finder and facebook marketplace. I only found comps on Furnished Finder, but would like a few more data sources to validate my findings. Thoughts? Thanks!

Hey everyone,

I'm a senior in college right now (22 years old) and I'm interested in starting my investment journey in Maryland (PG or AA County area) with a house hack. I'm planning to start working full time in January and was planning to invest around June, and I'm wondering if I would be disqualified from an FHA loan due to not having 2+ years of income.

Also, I'd be open to other financing recommendations that might fit my profile better.

Next school year, I'll be attending Virginia Wesleyan University in Virginia Beach, VA. Curious if there's any advice as to how to go about the process of finding a property and whether it'd be possible to make it work or if it would be better to just live on campus. Not sure yet if I'm going to do it right away or wait for my sophomore year so that I'm able to build up more capital.

I want to get into house hacking as soon as possible. Would it be smart to get a DSCR loan, or an FHA loan? I do not meet the requirements right now for an FHA loan, but from what I heard about the DSCR loan they don't look at your income, or credit score, instead they look at how much rent you will be making monthly. What else do they look at?

If you were a single, self-employed, and location-independent worker, how would you go about identifying the best house-hacking opportunity in a tax-free US state? Ideally, I'd like to use a FHA loan to purchase a multi-family unit (up to 4 units) and live in one of the units. Any tax-free state is fair game.

As an investor agent who started with House Hacking, I also help clients who are looking to get into the Real Estate game by House Hacking.

House hacking is an awesome strategy that lets newer investors and homeowners get started for only 3.5% down using an FHA loan

If a client is purchasing a duplex all they need to do is qualify for the loan amount they are looking at and they can use the income from the other unit to help them qualify as well

This is not the same case for 3-4 unit properties. 

For 3-4 unit homes, the borrower has to qualify for the loan amount but the rent from the other units (the ones they are not living in) have to cover your PITI (principle, interest, taxes, and insurance)

The problem now, is that almost NONE of the 3-4 unit properties qualify for this self sufficiency test

Even properties deemed to be a "good deal" don't qualify even if the borrower can

This is making it extremely difficult for House Hackers to scale and get into larger multi family properties

I was even working on helping a client out for a property that was an excellent deal with top market rents and the property still didnt qualify

There are many programs out there that are helping first time buyers, grant programs, etc. but FHA really needs to give on this self sufficiency test.

This will only create a larger gap between investors and homebuyers

Even at the low interest rates that my properties have (2.75-3.625%) they still wouldn't qualify with 3.5% down.

Something needs to change. FHA buyers, at least in my market, don't have access to deals that are selling 100k under market value, in fact, no one does.

This is true for the Greater Phila/Phila market

And before anyone tries to tell me there are deals in philly that can pass this test, please, we are not looking in D class areas. 

Hopefully we see a change so that more of our community can get into the game!

Hello BP Community!

I recently got to come to an agreement with a friend to create a partnership to allow us to more easily invest. I wanted to reach out and ask if a partnership has any unforeseen problems that could arise? My partner and I have very good communication and are on the same page when it comes to investing strategies, so we both assume this is a great path to follow. Will a partnership cause variations in the route we would take to finance a property? As in, would a bank treat us differently as a partnership rather than just a singular person? Also in terms of financing, if one party is funding more than another, is there a way to dictate that when closing a deal? I just had these questions running my mind while trying to formulate a good partnership agreement for us, and wanted to try at least hearing from others before I finished!

To follow that up, when going through the process of our first deal, would it be smarter to open a new line of credit or checking between the two of us? I know this sounds like a ridiculously "google-able" question, however I'm asking here because google doesn't have the human touch to it's answers! What does including extra investors add to the workload? Is it smarter to onboard whatever investors you have prior to acquiring the property or is it safe to still gather investors in to the first few months of owning a property?

Last question, I promise! Are there any recommended softwares or websites for virtually tracking investments, income/expenses, etc. It's completely fine if those aren't recommended as well, I just need a quick way to for my partner and I to have access to the property data without crunching tons of numbers.

Thank you for your time and help,

Andrew

Austin Investors! What zip codes will we see the most change in the next 5-10 years. With it's proximity to downtown, will 78741 be the next 78702?

Hello, I recently posted my first MTR Property. Any feedback on how I could make my listing better? Thank you!

https://www.furnishedfinder.com/property/

589202_

https://www.airbnb.com/h/travelersretreat23