All Forum Posts by: David Espinosa

I would run the numbers. If renting out the old condo works on paper go for it. Just make sure you add in hoa fees into your formula. You can use the calculators here on biggerpockets a few times before going pro. Try them out and see how it works out as a rental. Another thing to think about is your hoa may have a limit as to how many units can be a rental and they might already be at the max so look into that as well for both properties.

I don't think regular fha will allow that. On the other hand fha 203k might. I would talk to your lender about what they will allow so you can get a better idea of what you can do. Also check zoning, in my area they have limits as to how many units can be on a parcel of land depending on where its at.

Don't wait, your banker needs to see that you are a professional and are going to do what it takes to make it happen. If you get shakey everytime you hear about something they will be a little leary about working with you in the future. Yah a little bit of % will help a bit but look at the bigger picture. If rates drop..... Oh well.

There are other costs as well. You will need money for inspections which usually cost more if buying a Multi than a SFR. Closing costs, if seller isn't willing to pay, which with fha you can ask for upto 6% of purchase price to be applied to clossing costs. Upfront pmi which can be rolled into an fha loan or it can be paid by seller as part of closing costs. You usually have to pay for appraisal upfront but can get back at closing, depending on bank and your relationship with them. Something to think about, doesn't amount to a whole lot but can be a suprise if not prepared for them.

I would also ask for signed estoppel agreements. You can get some on biggerpockets.com/files. It will make sure there isn't any spoken agreements and confirm the deposit amounts. The last thing you want is a tenant to say they gave a triple deposit because of bad credit. If you don't already have financing lined up say it's contingent on financing being approved and bank accepting property. Make it contingent on a clean or acceptable title. Also put in contingent on appraisal and ability to renegotiate if above market value. Ask for access to property to do inspections and for them to post/give proper notices to tenants for inspections if required in your state.

I would ask for signed estoppel agreements from tenants. You can pick some up at biggerpockets.com/files. It will show proof for deposit amounts and if there were any unwritten agrements between landlord and tenants. It will also help with seeing that one of the tenants are month to month so you can take possession as required by the loan. I know the regular fha is 60 days after closing dont know about 203k program though. Asuming one side isnt already vacant.

Sorry, I guess I just asumed she owed 50k. You can try to buy property with her being in first position on the property and pay off back taxes and agree on rest of terms. You can pay more than 50k but over a longer term asuming she doesn't need cash now. You can negotiate down payment and intrest and such. Have a professional draw up the paperwork though to keep it all legal. On the flip side though to own rentals you must have some type of capital or access to it because things can go wrong and stuff does happen. So maybe wholesale and save up more capital first.

Sounds like a good subject to deal. Pay off taxes and have an lawyer draw up paperwork. Use tenant payments to pay loan like it was in your name. I would strongly suggest getting a lawyer to keep everything perfectly legal. If you can't come up with tax money, do a sandwich deal where you get a down payment from a buyer that you offer owner financing to and use that to pay taxes off. I would try to get with an investor in your area for help with the deal if you can't swing it on your own.

Awesome!! Congrats!!

I would suggest going to local REI meetups. You can find them here on biggerpockets or at meetup.com. You can meet with local investors and see who is doing what in your market and maybe gain some knowledge and confidence to start on your path to success.