All Forum Posts by: Jeff Brower

Yes, you can view homes by yourself. I am looking for a small multifamily to purchase myself and just set up the showing as if I am helping any other buyer. For rentals, I wouldn't think the situation would differ.

Primary residence = living there > 50% of the time. Interpret as you may, but that is how I have always viewed it.

I have my license more for personal reasons, and to help friends/family every now and again. I am with KW. Having only done 2 transactions last year, I am a good example of 'basic' as it gets when it comes to fees. I would estimate about $1500-1800 just to keep the license active without doing any deals. That is in Ohio and covers my local, state, and national realtors associations dues, KW fees, MLS fees, etc. Obviously it will depend on which broker you go with, as splits matter.

Sounds like you are willing to go to work and let your daughter take a free ride. Your family must be really tight. If I had worked all of these years and finally made it to the age that I could start to think about retiring and then couldn't because my child wanted to live for free, I don't know if I would be as nice as you.

Welcome Jeff! I frequent the Chesterland area, mostly I drive through once a week when I am headed to fieldstone farm in Bainbridge on Tuesdays. I have been searching for a multi out in lake/Geauga for over a year now, they are scarce. The only multi's I have seen in Chesterland come up in the last year have been duplexes on 306, and they usually go quickly for a lot of coin. I currently live in Willoughby and work at the Cuyahoga county airport full time, shoot me a PM and we can connect sometime. I have my license with KW out of Mentor just for personal reasons mostly, but also to help friends, family, and coworkers when needed. If I can help with your goals, I would be more than willing.

What will the property clear if all 3 are rented without you living there? I assume you only have to live there for a year like most owner occupied loan rules.

Two other points to consider: Equity paydown, and depreciation. Every month, how much equity are you paying down on the place? Also, if you make under 100k MAGI, you can deduct up to 25k in passive loss against your W2 income. This deduction phases out up until 150k MAGI. This should not be your only justification, but it is something to consider.

30 years at 3.8% is the best you will get, interest rates are projected to get closer to 5% towards the end of 2018, which has a large effect on your monthly payment. If it makes sense, locking in at 3.8 for 30 years is a good call.

My honest advice? You should each do one yourselves. Putting you both on the loan will only prohibit you from doing 2. Once you get a steady two year stream of income, you can qualify yourself and do another. 3.5% FHA is like gold, but you only can have one (at a time). If you both don't have enough money to put down 3.5%, then you need to save more.

Also, I would leave your one currently vacant unit as vacant. That will give you the ability to show it without disturbing the tenants until an offer is placed contingent on viewing the others. Plus, if someone wants to do an FHA loan and/or owner occupy the place, you already have one unit vacant. 3 out of 4 is perfect for selling.

What percentages are you using for your expense numbers and how much are you putting down? If you are buying at market, then there is little chance that you will build up enough equity in a 'year or so' to enable you to refinance and pull cash back out. Can you FHA and house hack this place so that you don't have to borrow funds for the dp?

Good strategy and I have thought about it. The recent tax bill had changes in there that included changing this from 2 out of 5, to 5 out of 8. Luckily that change was removed.