All Forum Posts by: David G Vreeland

Looking to purchase my first multi family property and had some questions regarding financing.  I'm looking at buying a 2-4 unit property either using cash, rehabbing, then financing or using financing initially on the purchase.  I currently own a home that I purchased 6 months ago using a conventional loan and plan on moving into the new property in order to lock down a better interest rate on the purchase.  My loan provider has already indicated they wouldn't call the loan due if I move out before a year is up.

Financing on the purchase

From what I'm reading for multi unit properties you can't do a 5% down purchase like you can for single family homes. The one exception appears to be FHA loans. Can I purchase a property using a FHA loan if I already have a home I purchased 6 months ago using a conventional?

Purchasing With Cash, Rehabbing, Refinancing

So the loan here would have to be at most 80% of the appraised price correct?  So if I find a property for 70k, spend 10k to fix it up, it appraises for 100k, then I could take out a loan for 80k and essentially take out all the money I invested into it?  Except of course loan costs.

Anyone had experience house hacking using family members?  I recently bought a property using a conventional loan we are living in, but am looking to buy another house for my sibling to live in for a year then turn it into a rental property.  I know if you buy a house for your parents you can still take out a conventional loan but am not sure about buying a house for a sibling to live in.  Anyone have any experience with this?

A property I am looking at had a fire about a year ago and the insurance company of the prior owners was nearly done fixing it up before the bank took possession of the property in foreclosure.  There is about $10,000 worth of repairs that still need to be done by the insurance carrier.  The question is if I buy the property at auction is the insurance carrier still required to complete those repairs or are they able to get out of that since the insurance policy was with the prior owners?  Also if the property is still technically owner occupied but the prior owner is not actually living there anymore as the houses furnace is broken is the process of evicting them more straightforward?

Thanks for the info guys. I ran the number at worst case scenario and its still around 8% ROI if you include the reduction in principle in it. As I don't currently own a home I'm thinking about living in it for a year using a FHA loan then renting it out to push up that ROI. Could anyone direct me to the best metric to use when evaluating the profitability of a rental? As an accountant I made my own but it probably would be good to run the numbers using a more standardize set of criteria

I was the highest bidder on an auction.com listing and because the reserve was not met the site counterbid it.  The strange thing that happened at the end of the auction was that auction.com started counterbidding its own bids.  So at around 3 seconds left it counterbid itself and added 2 minutes.  It did this around 4 times before the auction ended with no buyer.  What I am trying to figure out is did the site stop counterbidding because the price had finally hit the price right before the reserve was going to be met?  Or does the system just automatically counterbid 4 to 5 times before it closes.  Also do banks just continue to lower the reserve price each time they relist a property until someone finally meets it or after a couple times will they give it to a realtor to sell?  

I am new to these forums and also a first time investor and am hoping for some advice on a potential first rental investment.  It looks like a good deal and I  am buying from someone I trust but could use some input from sophisticated investors.

Purchase price: $110,000

20% down

Loan rate: 4.75%

APR: 5.0% (would love some explanation as to how this is calculated

Rental rate: $1250

House type: row

A friend works for a company that flips houses and is doing the flip.  They were going to list it for $120,000 but are selling to me for $110,000.  It's in a decent neighborhood, the houses around it are valued at $130,000+, right next to elementary school, and zillow estimated the homes in that area will go up 3.1% in value next year.  No additional repairs needed and I'll just need a washer/dryer and fridge.