All Forum Posts by: Jacob Walter

@John Barnett

Hey John I would love to Have a chat with you regarding your properties. I am the head of accounting for Patriot Properties out of Waunakee Wi.

Not only are we top of the line property manager we are investors ourselves with many properties in and around Madison.

Send me your contact info and a good time to chat next week. I would love to see if we are a good fit!

@Michael B.

Hey Michael, you should be able to have a duplex that is that far away be considered a second home (primary residence) without an issue, especially when there is a perfectly logical reason for it. With that being said I could not answer if a bank would be willing to lend with only 5 percent down.

I would love to connect when you are the area! I am the head of accounting for a Property investment and management company out of Waunakee Wi.

Let’s be honest here, this post is not about the numbers I’m sure you went over them hundreds of times and they seem great. The issue is fear. The key here is to get the wife on board and comfortable. My advice would be to partner with some one that has rental properties and is successful. Partner with some one you trust that has real estate properties and is in the area. There seems to be enough cash flow to make another investor ok with making a deal.

I just recently bought a house (close on July 31st) and we had to weigh the option of FHA or conventional. I only had 1 year of work and my girlfriend had 4 months so the two year rule I was unaware of. My advise would be go talk to a mortgage broker, these people usually have a beat of what is available with your income employment and where you are living. For example you may even qualify for a USDA loan which is generally 0% down. If you are looking in the Wisconsin area I recommending giving Educated Mortgage a call.

How much was the property originally purchased for? My understanding is that if 250k was profited then no capital gain is required to be paid in this case since the property was owned for 2 years. Also I do believe there was a verbal contract in this case but it may be a toss up if lawyers were to get involved and it doesn’t seem that they want this to happen. If the Sibling did not report the money the sister was paying on the mortgage but was taking all of the tax breaks for owning the property I believe the IRS would be sending her a big fat bill and possible more.

FHA do not like investors like us. The loan is designed to get first time and lower income home buyers to purchase. There are two exceptions to the FHA rule of having only one FHA backed mortgage. 1. If you are moving to accommodate your commute to work 2. If you can provide evidence that your family is out growing permanent residence. (Moving to a 3 bedroom from a 2 due to more children) By Refinancing your current property and then using the FHA loan on a new live in property, the government does not see there a real reason for the move. They see this as an investment not a primary residence relocation. It doesn’t matter if you refinance the underwriters see that the move does not accommodate the exceptions. Now I’m not sure if this would work or not but possibly waiting a seasoning period up to 1 year after refinancing and then trying to use an FHA loan again.