All Forum Posts by: Kelli Ford
Kelli Ford has started 2 posts and replied 13 times.
Post: Hello BP, Newbie from Southern California
- Valley Glen, CA
- Posts 15
- Votes 5
Originally posted by @Logan Allec:
@Kelli Ford, you're smart to be thinking about getting into a multi-family property using FHA financing with little money down. In my opinion, that is the best option for a young person looking to get started investing in real estate.
One thing to keep in mind when looking for an FHA owner-occupied triplex or fourplex is that 85% of the market rents on all the units need to cover your monthly payment (principal, interest, taxes, insurance, and mortgage insurance). This is known as the self-sufficiency rule. It only applies to 3- and 4-unit properties (not SFRs or duplex) bought using FHA financing. I put together a spreadsheet to help potential house hackers quickly analyze whether or not a property qualifies. There are other FHA requirements concerning which you should contact your local lender, but determining whether or not a triplex or fourplex meets the self-sufficiency rule is a good place to start as this rule will immediately eliminate many properties from your search, especially in expensive markets like ours.
I wish you the best and happy New Year, Kelli!
Hi Logan, thank you so much for reaffirming my thought process. I really appreciate that you provided the spreadsheet. It will be very helpful in my analyzing process. I'm still learning the jargon and how to analyze deals.
Happy New Year to you too!!!
Post: Hello BP, Newbie from Southern California
- Valley Glen, CA
- Posts 15
- Votes 5
Hello BP,
My name is Kelli Ford. I am new to real estate investing and have always had an interest, but never really went for it, now I am diving in and learning all about REI. I'm a new mommy and I want to create a passive income stream, so that I don't have to go back to work.
I came across BP, by researching how to get started in Real Estate Investing and saw the UBG to REI guide. There's a wealth of information on this site and I enjoy listening to the Podcasts and learning everyday. My goal is to purchase my first Multifamily unit this year and house-hack :)
I'm anxious to get started, but feel like I still need to know more. I kinda feel stuck. I wanted to use a FHA loan or 203k loan for my first investment, but I see that there are a lot of options.
I look forward to interacting with other members and welcome any advice!! :)
Post: First Investment Property in Southern CA
- Valley Glen, CA
- Posts 15
- Votes 5
Congratulations!
That's awesome, I'm new and look forward to purchasing my first multifamily home this year too. I'm also a former engineer and love the idea of you giving back to STEM.☺