All Forum Posts by: Lauren C.

Hi @Sloan Springer

Welcome to BP. I live in Collingwood as well. What a great town! While I'm still in the closing process on my first property, feel free to reach out with any questions. 

Good luck!

Hi All! 

As promised, here's an update. @Brett Alphin @Greg H.

So I placed a bid on a HUD home during the first 10 day period for owner occupants of 89.05% NET to HUD and they accepted! I did 89.05% thinking if there was another buyer with the same mindset, I'd outbid them. Could I have gotten it at a lower price? Possibly. But having the OO advantage, I didn't want to risk the property going into the extended period allowing investors the opportunity.

Thanks again to Greg and Brett as this will be my first property. Of course, we still have to close but I'm excited about the process and looking forward to the education. 

Great info, thanks Greg! I'll report back after I place a bid and hear back weather it was accepted or not. 

Thanks for the quick reply @Brett Alphin

@Brett Alphin

Hi Brett, Thanks for all of the info! Question for you and anyone else who may know. Does the 89% rule apply to owner occupant homes as well? Looking at a duplex HUD that is still in the exclusive period and I'd occupy one of the units. Does this open it up to a lower threshold or does 89% still apply?

Thanks!

@Yvette Chung

Hi Yvette! I think if you supplied us with some more information, we'd be able to give you better guidance. Such as how much will you be putting down, will it be owner occupied, etc. 

Now I haven't closed on a deal yet but have analyzed many many properties. Using the BP Rental calculator and assuming you'd put 20% down, accounting for CapEx/vacancy/Insurance/Repairs, etc. I don't think you'll be able to cash flow on this property.

But it all depends on what your goals are. If it's passive income through cashflow, I don't think this is the best option.  If it's to live in one unit, rent out the other and have someone pay down your loan, then it may be an okay choice. 

Hopefully a seasoned investor can chime in with better advice. 

Good luck!

@Anthony Dirosa Hi Anthony! I'm located in Camden County as well and am actively looking for my first purchase. I'd be happy to chat but don't have much experience under my belt to share. Welcome and best of luck!

Joseph Scorese conventional*** damn auto correct.

Joseph Scorese thanks for the info. I'll look into a conceptual loan as well. Steve Bracero thanks for the clarification. And yes, I agree about that being an unlikely amount of appreciation in that period of time. I just used nice round numbers to understand the concept. Thanks for the info!

Brandon Madden Steve Bracero Hi Brandon! I'm currently trying to do this in South Jersey with a 4-plex. Still try to figure out if I want to go FHA or conventional with 20% down. Good luck and I hope we hear an update soon! Steve, you brought up equity to get rid of PMI and I have a question. If the property sells for 100k. I put down 3.5% ($3,500). Renovate the property and it re-appraises for $150,000. Does that mean I would then have 53.5% equity of the original appraised value and I'd be able to kick off the PMI since only 20% is needed? Thanks!