All Forum Posts by: Edgar Perez
Edgar Perez has started 31 posts and replied 90 times.
Post: 2 owners on an owner occupied HUD

- Kenosha, WI
- Posts 91
- Votes 21
Hello BP,
I am interested in purchasing a HUD Duplex property that is being offered to first time home buyers first. I am looking to partner with a family member (dad) on the deal and am wondering if we both put our names on the deed, do both of us have to live on the property to be considered owner occupied. In my scenario I would live there and manage the duplex while my dad would be more hands off.
Additionally, my dad typically purchases his properties through his llc; would we still be able to partner using this method?
Thanks all.
Post: BRRRR (+househack) strategy using parent's money

- Kenosha, WI
- Posts 91
- Votes 21
@Shawn Ackerman makes sense I think I got it you've been very helpful.
Post: BRRRR (+househack) strategy using parent's money

- Kenosha, WI
- Posts 91
- Votes 21
@Shawn Ackerman thanks for the clarifications, so then if I'm understanding you that is why you make your private money lenders make that loan agreement so its not an all cash purchase which then allows you to refi within the 6month period correct?
I read somewhere that there are tax issues that come up when family lends to family to help finance but if money is gifted for an all cash purchase the regulations are more lenient which is why I was considering that method.
and yes as an act of good faith I wanted to put his capital against the property for peace of mind.
Post: BRRRR (+househack) strategy using parent's money

- Kenosha, WI
- Posts 91
- Votes 21
@Shawn Ackerman I don't completely understand your example; what is the 6 month seasoning requirement you referenced? How does forwarding the loan agreement to the bank help? and when you say secure my dads capital against the property, are you saying that if I can't repay the property goes to him?
Post: BRRRR (+househack) strategy using parent's money

- Kenosha, WI
- Posts 91
- Votes 21
@Zack Karp how different is it in regards to getting prequalified for a refi than getting prequalified for a conventional mortgage loan, because I did get prequalified through a local credit union for a max loan amount close to what I believe the property ARV will be. This makes me hopeful that I will be able to refi after a year of rental income plus paying rent to myself if that makes sense. What is making me consider partnering with my dad is that the amount of money I would have to put down would be a lot less compared to 20% for a conventional and also my dad could pay cash and quick close which I hope to leverage towards a lower purchase price.
Post: BRRRR (+househack) strategy using parent's money

- Kenosha, WI
- Posts 91
- Votes 21
@Corina Eufinger for rehab I do have some money stashed that I could use towards it and I am definitely going into it as a business relation.
Post: BRRRR (+househack) strategy using parent's money

- Kenosha, WI
- Posts 91
- Votes 21
you all are awesome
Post: BRRRR (+househack) strategy using parent's money

- Kenosha, WI
- Posts 91
- Votes 21
@Account Closed yes I also heard that on the latest episode; so this property is in a desirable location for my city and if I can't refi, which I don't know what goes into determining that, I don't see an issue with selling it or keeping it as a rental, worst case scenario since my dad lives in the area I could probably find a way to put the property in his name and he wouldn't have a problem adding that property to his portfolio.
Also, my goal for this property would be to keep it as a rental and have nice cash flow, use the refi to pay off my dad, use whats left to purchase another owner occupied duplex, rent the other half of the new duplex and have the 1st duplex fully rented.
Post: BRRRR (+househack) strategy using parent's money

- Kenosha, WI
- Posts 91
- Votes 21
GOOD MORNING VIETNAM,
So I am trying to be creative in financing my first duplex; I have a couple options, FHA, a first time home buyer conventional loan from local credit union or private lender (my dad). So what I want to focus on is having my dad loan me the cash (100% of purchase value) to buy a property that I would be living in and potentially using the BRRRR strategy on. What challenges may I run into when doing this. I've read that gifted money cannot be used for an investment property but since 1) I would be living there and 2) it would be an all cash purchase does that put me in the clear? Obviously plan would be to Buy Rehab Rent (rent half live in half) Refi (pay back pop) Repeat. Looking for any insight on this, just trying to be creative here and use the tools at my disposal. Thanks in advance, and for what it is worth I am located in South East Wisconsin in between Milwaukee and Chicago.
Post: Kenosha (SE Wisc) home inspectors

- Kenosha, WI
- Posts 91
- Votes 21
Hey BP family,
I am a new investor who just got under contract for my first property (4unit) and am looking for recommendations for good home inspectors. In my area good2go inspector is the best priced but looking to see if anyone has experience with inspectors I. The area. Thanks in advance.