All Forum Posts by: Dan Weber

Can you just buy it from her with traditional financing? For example, let's assume the house is worth $35k. Let's also assume you get a mortgage for $30k and put $5k down. The seller has a first lien position on the property like a normal bank would. With all of this being said, you purchase from your friend, the seller, for $35. $25k goes to the bank (or previous owner), and she pockets the difference, less closing costs, etc... The process would be pretty similar to buying a normal house. Use your state's Purchase and Sale Agreement to draw up the contract and pay either an attorney or another real estate agent to help guide you through the transaction for a smooth closing.

Do you have a close family member that could be a cosigner on your loan? That would be the next easiest option! If not, I would explore commercial loans. You may have a higher interest (4%-5%) but it could get you into your first deal and then refi into a residential loan later on.

Can you have a parent go on the loan as a "Non-Occupant Borrower" or co-signer of some kind?

@Account Closed make sure you do some proper due diligence before you close on that property. You can look up the zoning district for that property online and then look through the local zoning ordinance and make sure that multi-family is an allowed use in that district. Also check the dimensional requirements for a multi-family and make sure that your property meets the required setbacks, building height, lot size, etc... If you do not meet the dimensional requirements for a multifamily then you either won't be able to do it or you will need further special permissions. As Marc said, I'd also go into the city and tell them what you're planning to do and ask them what the process will be. Each town has their own process for this. 

You are only allowed to have one FHA loan at a time. So, if your first home purchase was an FHA loan and you have not refinanced yet, then you won't be able to do another FHA loan purchase and won't be able to do the 203k loan. All FHA loans require owner occupancy. Good luck!

Depending on what sector of healthcare you work in, I would suggest sticking it out there for awhile. Likely you will make better money there then you will in many real estate occupations at first like being an appraiser or a property manager. More importantly, if you quit your W2 job to become an agent (and maybe appraiser? - not sure if this is W2 or 1099 employment), it will be tougher for you to get financing until you show 2 years of tax returns. I'd try and lock down a house hack to get your investing journey started before you decide to switch careers. Good luck either way!

@Kendal Lamb Maine is a great place to invest! Have you narrowed down a specific area in Maine that you'd like this info catered too? It obviously varies by town/city, county, geographic region. Southern Maine is very different than midcoast Maine which is also very different from Central Maine.

We had another great turnout last night - thanks to everyone who came!

@Catheryn Barry we had to move the party a couple doors down to the country bbq bar as Banded is apparently closed today for maintenance. Just ask for the BP Group! We’re outside by the fire

@Daniel Fitzroy how are you analyzing your house hack? You said you're looking for a cash flowing house hack. So, are you looking for it to cash flow while you live there? That's unlikely to happen with a duplex. Generally, if I'm house hacking, I would ideally like the other unit(s) to cover my PITI and then cash flow nicely when I move out. If you house hack a 4 unit building, then you may get some extra cash every month while you live there after you pay the bills. When analyzing, I'd run your numbers like you are not living there as you likely won't be living there for 95% of the years that you own the property. Also, this gives you more of an apples to apples comparison when looking at investments.