All Forum Posts by: Jeff F.

For those of you following the thread im sure you're waiting for an update. One is coming soon, I promise. 

@Ebe Chinweze - I didnt bother with an inspection because I Knew there were going to be issues and was ready for them. That being said, that may have been the wrong move but there was enough meat on the bone to swallow quite a bit. 

@Omar Khan - Will be updating soon.

Been busy :D 

Come to the meet up, Tuesday. 

PM Me for info. 

J

Nice work @Michael Henry

Hi @Harsha K. -

I can only talk about the commercial loan: Yes, you'll need one. Anything >4 units will require that. The better part is that will make it more about the asset as opposed your personal credit.

As far as the deal, the HOA seems super high to me. Is there any upward potential for rents?

Hi @Steven Penn - 

If you are a veteran, I'd suggest looking into the VA Loan. Those have very favorable terms (and potentially downpayment assistance, but i'm not 100% on that).

If you're not, read up on "house hacking" Here on BP. Your best way to do this is to use an FHA loan. You'll need to put 3.5% down and pay PMI, but you'll likely be able to live for free and your tenants will pay down your loan. If you find something that needs a bit of fixing up, you'll use a 203(k).

Read up on all those, and good luck. 

What a fantastic flip & profit @Dejahn Renrick

hey @Jared Zanon - If you're interested in small multifamily, look into the FHA Program. You can come in up to 4 units with as little as 3% down.

Also, since you're a public service employee, there may be special programs for you from the city/county that you live in. You'll need to dig in for that though. 

@Kyle Gilbert -

I believe you're exempted from capital gains through real estate due to the fact that you've been living in it. From the IRS: 

Qualifying for the Exclusion

In general, to qualify for the exclusion, you must meet both the ownership test and the use test. You're eligible for the Section 121 exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. You can meet the ownership and use tests during different 2-year periods. However, you must meet both tests during the 5-year period ending on the date of the sale. Generally, you're not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. Refer to Publication 523 for the complete eligibility requirements, limitations on the exclusion amount, and exceptions to the two-year rule.

https://www.irs.gov/taxtopics/tc701.html