All Forum Posts by: Jeff Brower

do you have washing machines draining anywhere?

I would not get involved in tenant disputes to that degree. You have already mentioned it to the bottom tenant, so that's all you can really do. If the upstairs tenant wants to move out, then that's her choice.

Type @ then begin typing the name and it will pop up for you to click. You can only mention your colleagues or people who have commented on that topic @Sean Harrison 

Interest accrual is only required if your security deposit is one months rent + $50 or more. I just charge one month to avoid the hassle, which is fairly standard around here. Special account not required.

Here is a link to my duplex story with similar numbers:

https://www.biggerpockets.com/forums/223/topics/645825-my-first-duplex-fha-house-hack-case-study-with-tips

You have to compare your payment to what you would be paying if you were renting a similar place. If you're paying $276, but otherwise would be paying $1250 if you were renting the space, then you are way ahead. The advantage is that you can move out after one year and rent both sides, then you will be in the black. The numbers you gave are pretty similar to the duplex I bought this summer. I am very happy to have these numbers. 

https://www.fanniemae.com/content/guide/selling/b3/3.1/08.html

@Justin Tahilramani if that is the case then they will use the rent number from the appraisal. 

Don't forget to tell her about the self sufficiency rule which applies to 3 and 4 units with FHA. 75% of the total rents must cover the mortgage. Kind of like a 1.25 debt service coverage ratio. This shows that the place will be able to sustain itself. Search for it on here and you will get loads of information @Eudes De leon

@Eudes De leon @Justin Tahilramani Yes you can. You can use 75% of the appraised rental amount, or 75% of current rent, whichever is less.

Example: If each of the 4 units rented for $1100 but appraised at $1000 per month, she could use $750x3 ($2250) to help her qualify.

I just went through this scenario this summer looking at a 4 unit so I know it is possible.