All Forum Posts by: Jenna Stonecipher

Yes. You have to be an owner occupant for one year before you can rent or sell it. You could just move every year and purchase properties that way, since it does give you an advantage during the bidding process.

@Nicole A. I am in TN, and normally this wouldn't be a concern. However, that "polar vortex" has thrown us for a tizzy.

I went home on my lunch break and checked. The pipes for the downstairs units are definitely frozen. Temperatures are supposed to rise after tonight (low of 30).

With pipes bursting, is it something that either happens or not--or is it something that happens after extended periods of freezing? This is rather new for me. I watched that youtube video that a fellow BPer posted today in the forums and it has me shakin' in my boots!

About the utilities: these units haven't had utilities in almost 2 years. After a year, the utility company requires air pressure tests, permits, meter/safety checks and who know what other hoops I'll discover and jump through. We are working on getting through the process but in no way will we have utilities on in these units before it warms up.

Thank you both!

Hello, BP'ers.

I bought a 4plex last week, and only one unit is occupied. I'm rather new to REI and I'm seriously worried about pipes freezing. I can't shut the water off because of the family living there. The utilities are not on in the remaining units--nor can I have them turned on any time soon. Aside from wrapping the pipes that I can see with insulation and letting the pipes drip, is there anything else that I can do?

hashtag.prayin'

I've searched for the same thing to no avail. Droid user here.

@Greg B. you found the perfect place. seriously.

@Sean McGovern While this makes more sense that renting your current place at a higher rate, this may not be the best investment property down the road. @Justin E. is right. Check out the "50% rule" to help you analyze potential properties. My first property was a triplex and the rents from 2 units covered my mortgage entirely.

I understand what you're saying about selling it down the road, but keep in mind that (generally) investors are the ones buying multifamily houses--not retail buyers. When I'm looking at a multifamily property, cashflow is way more important that appreciation.

The trick to finding your first property is taking your time. If you analyze 100 deals and visit 30 houses, you'll have a good understanding of the market. Anytime you mess up in RE, it has the potential of having multiple 0's behind the mistake.

Best of luck. Stay engaged in BP!

@JC Smith I've heard of people buying multifamily with FHA, building up enough equity and savings to refinance into conventional and then moving forward to purchase another property with FHA. Although, I'm not sure if that's the best option. Roll with the opportunities that you're given. They will surprise you :)

I don't see why the projected rents would affect your ability to qualify for the FHA loan. I didn't think that rents could count towards "income" unless you could show established leases and documentation of being a landlord for 2 years.

That being said, don't buy anything that doesn't make financial sense! Have you tried looking at SFH with guest houses or mother-in-law suites? Also, programs like NACA may work for you--but there is a ton a paperwork and processes that come along with it. NACA allows you to purchase 1-4 unit multifamily--as well as new constructions.

Best of luck!

@Andrew O. That is exactly the outcome I'm hoping for. Every dime counts! haha