All Forum Posts by: Damian Bialonczyk

@Juan Alvarez

You should be able to qualify for an FHA loan so long as you do not currently already have an FHA mortgage in your name. It does not have to be your first mortgage.

@Marco Pangilinan

I've had success with that strategy with a FHA 203k rehab loan that I used to purchase a foreclosed property. The one thing to keep in mind is that FHA will generally not allow you to refinance before 6 months.

@Rory M.

I definitely would recommend staying at least semi-local (<1hr away) for your first investment property. Western MA and RI have some reasonable markets for investing - not sure about NH.

@Bryan Cavellier

Generally speaking you should be able to refinance out of an FHA loan after 6 months. This of course assumes that you have at least 80% LTV.

@Stewart McGillivray

Depending on the vendor and loan type you could obtain a primary loan for the house and a secondary loan to cover rehab costs. The FHA 203k loan is an example of a loan money down construction loan. I've had success obtaining this loan type for a Homepath foreclosure.

@Steve McCarthy

I'm just down the road from you, in Dedham. Would be happy to connect over coffee. I'll DM you.

@Hunter Mills

Have you contacted your debtors and tried to pay off the old medical bills? This may be a good first step towards rehabilitating your credit. You may also want to consider opening a prepaid credit card account.

@Nathan Realph

In addition to the usual price-related considerations (ie interest rate, points, LTV), you should consider whether you are able to pay the loan off sooner, or if there is a minimum loan duration. Some lenders require >6 months before loan payoff can occur, which can be an impediment if you are working on a quick deal.

@Brody Nelson

Are both of your names on the mortgage? In my experience there will be tax implications once the property is moved into the LLC (ie you will need to file in the name of the business and pay taxes on income accordingly). I personally own multiple properties with two partners and for us an LLC was necessary to establish equal ownership of the properties, which vary in value. We were able to successfully transfer the property deeds from our individual names into our LLC however as you've noted there is a risk involved with doing this.

@Chris Edwards

Right, I forgot you mentioned there were existing leases. These are still legal and enforceable despite the change in ownership, so it will be more difficult to vacate one of the units. In the past, I have had some success with negotiating with tenants a cash payment (e.g. $500) in exchange for them terminating the lease early.