All Forum Posts by: Jim D.

@Quinton Slay You're on the right track... great that you're thinking this far ahead. Leaving your job and not having income in RI will be a challenge; is there any way you can stay on your current job and work remotely from RI for a few months? You'd just need to do it long enough until you complete the purchase, and then you could leave the job and look for something locally.

Have you ever considered auditioning for the part of Inspector Javert in Les Miserables? If you read this paragraph with a dramatic British accent, you'd be a shoe in.

Interesting idea, but tough in practice. Another challenge would be that in retirement, you presumably have no income, and may have a hard time qualifying for a new mortgage as you need to do with a refi.

When landlords think of students renting their house, I think the image that flashes through their mind is something akin to a scene from "Neighbors".

Of course that happens in some cases, but the majority of students are not party animals and will be just fine as renters. I rent single family homes to students, and they're hardly ever there. The wear and tear has been almost zero. Just don't rent to Zac Efron and his buddies.

You can ask a lender about both, but if you qualify for HomePossible it is better because it only charges you one form of PMI, while FHA loans charge you for both forms.

Very few people qualify for HomePossible, because you have to meet several criteria: not have owned a property in the last 3 years, not be above a certain income (it's $66,000 in my area), good enough credit score, etc.

You can ask a lender about both, but if you qualify for HomePossible it is better because it only charges you one form of PMI, while FHA loans charge you for both forms.

I don't understand the question. Do you mean you wanted to buy a home and move into it, to later turn it into a rental? And now you just want to buy a home solely as a rental?

@Troy Luster I think he means he is setting aside 7% of gross rents every year, so that they'll build up over time for when big ticket items need replacing.

Most investors set aside between 5-10% for ongoing repairs and maintenance, and another 5-10% for capex. Since your units are new construction, your costs will likely come out on the low end of that scale, especially during the first decade. 

If you're unsure, it's always better to be conservative and well prepared.

I'm sure you know this already, but you can do a much smaller down payment if you purchase it as your primary residence and move into one of the units. You'll be required to live there for at least 12 months, after which you are free to move out and keep it as a full rental.

I'm no lawyer, but I think it could be done safely and it would be great for you to already have your tenant placed.

Having you sign the rental lease now would put you on the hook for any damages or delinquencies the tenant were to cause. Why not just have them find their own tenant (with your approval), and then have them assign the lease to you upon closing?