All Forum Posts by: Jonathan R McLaughlin

If you a near a university think graduate students. Most are old enough to want a nice place to live, not yet working full time so need to economize and still used to roommates. 

@Justin M Lippold feels like almost any portfolio lender and many others would do a small mixed use like this. Commercial loan but kinda a vanilla one, yes? I know some banks are skittish about offices but with the plan you have an as-built rehab loan should be straightforward too.

@Shefali Srivastava If the ARV is what you say it is just use your funds and don't give up a piece of equity or pay big carrying cost. You will be able to get your money out at that rate of gain. Don't split cards when you have a winning hand.

@Caleb Scott this might be a good time to strategize with family. Can you partner in some way? Can you buy something (with or without their help) that they could downsize into and pay rent to you or buy it from you ? Or vice versa.

Works only if y'all can approach this as a generational strategy, but worth thinking about. At the very least it will trigger some very useful conversations with the girlfriend :)

@Caleb Scott as soon as you know where you are going buy there to execute your "live-in flip." I think renting makes sense right now. 

However, you could buy now as your primary, she could move in with you (2 years to qualify for tax exemption), then she could buy in the new grad program location as her primary, you move in with her and rent out the old place ("mom, dad...wanna property manage?"). 

That strategy is probably too clever by half and not worth the effort, and it only works if you can come up with 2 down payments in 2 years. Probably need a cosigner if she is in a first time grad program.

TLDR: buy in the new place
 

@Melissa Loupeda single family with an in-law, live in the in-law. They are all over the boston area, and often in fairly nice locations too. On the MLS you will see words like "excercise room" "bonus room" "finished basement with walkout space" kinda thing. There were a few really appealing ones in Roslindale recently, for instance. It does add a wrinkle qualifying for financing.

Well, you keep saying that but just saying that. If you are using Tom's quote from the NC bar I'm still not convinced she isn't right. 

The whole section cited is a caution to lawyers to not try this kind of dual representation/simultaneous close unless a wide series of (improbable) things are done, and even then there is a section that says this whole process may involve other criminal issues. 

Any lawyer who is a party to this invites heightened scrutiny by the bar at the very least, and it seems like the definition of "shady. You do you.

Wow I hit the wrong button and landed smack in the middle of the OJ portion without any context…spent a few minutes imagining the route taken.

It’s not an answer to @Marcus Auerbach question but my 50-50 partner and I created an LLC with shares/operating agreement etc. to enshrine the ownership and terms of operation of our business in a legal entity. It also allowed us to arrange financing between multiple personal funds etc, use a bond and so on.

There were a number of advantages the lawyers and accountants mentioned that I can’t remember. 

So I suppose in a way it prevents my partner and I suing each other over a misunderstanding. Well maybe not prevents but discourages. So this conversation is a little single operator bias.

If the entity doesn’t fit, you must acquit.

If you can justify the move by citing location (closer to work/kids/new partner etc) or other reasons that would help. Potential for better schools for kids due to the district (even or especially if divorced). General dissatisfaction with the neighborhood etc. plans to travel in the future and reduce expenses.

The bank needs a legit reason in its files so it is not seen as accommodating work arounds of the mortgage regs. 

All this assumes you would actually be living there and it really would be your primary.

@Ron Brady cool plan either way. We have contemplated similar scenarios for vacation/str. A few things that spring to mind:

1) with an investment property loan you can always treat it as a second home in practice—you still get almost all the benefits minus the days you use it. Check with accounting obviously but the only real disadvantage is the bigger down payment, and I think banks are getting a little wonky with the second home down payments anyway. And if financing is an issue the banks might notcount in-law income (see below)

2) I would lean towards renting out the house and using the in-law as your residence/office when you are around. You’ll get more revenue from the house and your personal use will be less of a percentage of the property. 

3) you likely won’t run into trouble given the actual fact pattern and practicalities but many (most?) towns don’t allow rentals of in-laws unless the owner lives there. You could rent out the whole house with an addendum allowing you personal use of the in-law x times a year for up to y weeks “while you are abroad” if you want to dot and cross is and ts