All Forum Posts by: Leah Pasco

Hi Ken!

Thank you for the information. Ok, I was thinking Subject To would not be the right option and this helps confirm that. 

We can see if they can qualify or find a 2nd mortgage lender. 

Does anyone have experience or advice if the owner becomes the lender for the 2nd mortgage? 

Hi BP community!

We have a property that has a great FHA loan interest rate, loan of 270k left. This is currently a buy and hold. We were thinking of selling because we've almost maxed out upgrades to the house (new HVAC, roof, appliances, resurfaced pool, etc) but, there would be about an 150k difference from the FHA assumable loan to market value.

We would want to invest some of the profits to buy another rental property to add value to it. Tax 1031 exchange looks like it has a lot of timeframe restrictions which doesn't sound as beneficial in our position. We have lived in the property for 2 out of the 5 years prior and are interested in the capital gains tax exemption.

Our renters wanted to know how it would work to buy our property. I am a real estate agent and new investor, I am always learning! I read on BP that FHA can be assumable and I confirmed with the mortgage company that the property is FHA assumable.

I understand they will need to apply for the FHA assumable loan. The purpose would be to pass down the better interest rate as a benefit to the buyers.

How does one find the 2nd mortgage lending? Would they need to get 2 down payments? (and how likely is a lender likely to consider this?)

I've heard that Owner's can carry a 2nd mortgage but, I'm not sure how that would work? I am guessing we would need a lawyer involved to hammer out the details to become the lender. We are open but, need to figure out how to do this the right way.

I understand some investors can look at Subject To in this situation. From what I understand Subject To means - When taking on an existing mortgage from the seller, the loan stays in the Seller's name while the deed to the property transfers to the Lendee/new owner. The payments are now the lendee's responsibility. However, if for some reason the lendee defaults and no longer make the payments, the seller would be liable and have the risk. I am guessing we would need a lawyer involved to pan out the details, as well, making this a less desirable option.

Are there other options to make this work for both parties?

I truly appreciate your help and advice as we grow in our real estate investment journey!

Hi Mark. Thank you for your reply. I have called a couple of HOAs so far and left voicemails. They haven't gotten back to me yet. I will see if they have an email or another number than what was listed on the posting. I will keep on in and get the answers! Thanks, again!

I am considering purchasing a condo as a rental property. I have learned that condos have HOAs and that there are rental caps on communities like 10%, 20%, 30%. I was wondering, how would I go about finding out the rental caps on each community? 

I am thinking that an HOA can handle more than one community/complex. For example, one would have 100 units and the other would have 120 units but, they both belong to the same HOA. Is this how it works? Please correct me if I am wrong.

Would I need to call each HOA and let them know the property address to zone in on the one I am considering? Can I find a list of HOAs in my city?

Any tips or advice as to what I should be looking for is welcomed!

Kind regards,

Leah Pasco

You could check with property management companies/apartments to see if they offer shorter lease terms. I also believe you could do a short term rental over 31 days through permitted AirBnB postings. Not sure what industry you're in and how the market is for employment but, you could check with staffing agencies to start. 

My husband and I began our REI journey by purchasing our first primary residence, that is manageable fixer upper, in August in 2019 in Las Vegas, NV. The lender recommended he apply for the FHA loan by himself. My name is still on the title. We are nearing the end of our 1 year obligation to occupy the FHA home and are looking at our options for investment properties. We are considering purchasing another property where we could occupy with an FHA loan under my name.

I am wondering since my name was not on the application for the FHA loan, would I be able to obtain an FHA on my own for our new property?

I've also read other posts about refinancing the FHA loan into a conventional loan. I believe we will need to have paid 20% on our home before we can refinance to conventional. Please let me know if this is correct and if there are any other options. I appreciate the help!