All Forum Posts by: Derrick Dill

Not sure why you cannot build anymore on the land, but if you could I would add a additional dwelling unit or add bedrooms/baths.

If you cannot do that, I would do RV parking/storage/boat parking/car parking etc.

As someone actively shopping the bay area (east bay), market is still hot. Properties will go < 1 week above listing price. Inventory is still low and interest rates are historic lows. If you want to sell now, you'll get top dollar. At the same time, I don't see a point where we have a glut of inventory and prices decline in the near future. Demand is high, supply is low

I'm having hard time understanding but, If there is 1800 sqft backyard, why not have a new detached structure there for the ADU (granny unit) enter through side-gate entrance.

If you're targeting cash flow, shouldn't really matter that prices drop. If you're targeting appreciation, you should probably look into BRRR instead

Check the condition, not expecting you to be a home inspector, but are there cracks in the windows do the faucets/electric/utilities work? Is the "bedroom" not really a livable space (too small?). Could you picture yourself living there? What would you change if you did? Parking spaces? Air conditioner/heating? They work? What amenities are needed at this rental? What will improve your ROI? Furnishings? Paint job? new appliances? Room conversion?

You should have a home inspection to really check out the condition, but checking out the place you should put on your tenant goggles and look at it objectively

Best way to find out is check with the city, they're a phone call or email away.

Not claiming your rental income will worsen your DTI and is.. illegal, tax fraud. Your mortgage interest is tax deductible, depreciation, pretty much any and all expenses for your rental, including repairs.

Make sure you get your refinance in while owner occupied if you want to refinance, if not, you'll certainly get 1%+ higher interest rates if it's considered an investment property opposed to owner occupied.

Thank you for your responses.

@Curt Davis - I'm currently in this process now where underwriting is wanting me to verify the leases and how I'll be owner-occupying..

@Jon Schwartz - I've heard that one before! I think I'll be pursuing the cash for keys approach and buy them out if possible.. Underwriting won't let me get the place unless I got proof I'm moving in!

I'm using an FHA loan to purchase a duplex property in California. The property has 2 tenants in place, with written leases that go until next year (2021). FHA guidelines give me 60 days to meet owner-occupancy (move-in). How can I meet FHA guidelines and owner-occupy one of the units? California tenant protections are strong and eviction will likely take at least 60 days+.

Any ideas?