All Forum Posts by: Jordan Fiore

 I agree that its a good tool to figure out if something is worth digging into but definitely doesn't mean if something is a good investment or not. It is more of a time saver when evaluating properties. With some of these property taxes and expenses, it needs to be changed to the 1.2% rule:)

Correction! It is 75% of total fair market rent value that has to cover the PITI.

Hey All,

This is just a reminder post on the FHA rule on 3-4 unit buildings. I have seen this issue come up 2-3 times in the last couple months pertaining to FHA buyer wanting to house hack a 3-4 unit building here in Cincinnati. Since the 4 units are taxed commercially their tax rate is around 3%+, which can put a serious dent into the numbers.

FHA requires that the net rental income of a 3-4 unit property be equal to or greater than the monthly mortgage payment (PITI), ensuring the property can cover its expenses.

Ever since the massive reassessment across Hamilton county a little bit ago, this has become a serious problem for the 4 units priced $400k+ to hit this requirement. Make sure your lender knows about this up front because they could have been in the industry for 10+ years but only now come across this problem.

Jordan

Having $20,000–$35,000 in cash saved is a very feasible and realistic target. Accounts for some immediate repairs needed. If maintaining capital is top priority, look to get $10k in seller credits for closing.

Also, the FHA requires that the net rental income of a 3-4 unit property be equal to or greater than the monthly mortgage payment (PITI), ensuring the property can cover its expenses. Just in case you change to a 3-4 unit building.

House Hacking! great idea. A few different routes you may go here but I am assuming you will want the low down payment option, rather than a DSCR loan. I have helped numerous house hackers and location matters of course. Feel free to reach out with any questions.

 I am with Alan on this one. If ductwork is in place CORRECTLY then definitely just add an AC unit to the furnace.

Welcome to Cincy! A lot of different opportunity here, make sure to do your due diligence to decide which route is the best fit for you. I am a resource here if need be

Location will determine quite a bit here. A lot of question marks moving forward with CMHA at the moment, sticking to finding market rent comps is the safer bet. Price of these in the B or better location is going to make it tough to be in the green immediately. You should look to potentially making a unit or 2 MTR/STR to make the numbers work. Reach out if you want to connect and need some help!

Welcome Brad! The greatest teacher will always be experience. The goal is to mitigate the risk as much as possible with finding a good location and solid property. Cash flow might take a bit of a back seat but building a team you can trust and building experience are top priorities in my eyes. Best of luck!

 This. Also, I am assuming since you house hacked that you only did 5% down, which then increases your mortgage payments compared to 25% down buyers. Would need to know about locations of your buildings and current rents to see if there is anything that can be done now to get numbers a bit better.