All Forum Posts by: Michael Malloy

Gotcha. I figured that I could coax them out if I owned it but unfortunately that wouldn't fix my problem of needing to get approved for an owner occ loan moving in within 60 days.

My wife and I live in Texas and have been trying to buy a multi-family (duplex or triplex) to house-hack for several months. On average, only like 1 or 2 per month come available on the MLS. Once they do, they generally receive 5-10 offers; so competition is super high right now. We've already bid twice on other properties ($25K over asking price) but have lost them both. The only ones that don't have as much competition are the ones with leases that don't expire for at least 6 months. But that obviously requires us going in with 25% down on a conventional loan instead of a 10% if we can owner-occ it within 60 days. I don't want to permanently tie up that much cash in the property.

So here's my question... We're currently looking at a duplex with both units leased. The first one doesn't expire until January 31st. If I ended up purchasing the property, could I force one of the tenants out so that we could move-in to owner-occ it? We'd, of course, pay for their move and everything but wanted to see if this was possible in order to get approved for the conventional loan at 90% LTV. Like maybe see if the owner could get the leasee to sign an addendum that they'll move out if property is sold and their moving costs are covered.

Let me know if anyone has been able to come up with some creative ways to get a deal like this done considering the limitations of both units currently in long term leases. Thanks!

Hi Doug,

It's actually in a fairly upscale neighborhood and the previous tenants just moved out so that the owner could do a short rehab. That doesn't concern me at this point.

My question is how is it handled when I don't have a tenant in place during the purchase.

We're wanting to put in an offer on a duplex that currently has no renters on either side. We plan on house hacking this by living on one side and renting out the other. However, neither side currently has a renter in it. I need the rental income to offset the DTI for the loan. So my question is...since we can't rent it before we officially own it, does this mean that we're SOL unless the seller for some reason decided to spontaneously rent the other unit before closing?

Also, while it's not a deal breaker, but I'd prefer to have at least two bathrooms in the unit that I plan on occupying. 

Hi @Shaun Pruett . I already live in the Dallas - Oak Lawn/Uptown area. As long as the 2nd, 3rd, or 4th units (duplex, triplex, or fourplex) are already rented out to offset my DTI then my price range is basically whatever the top amount allowed for an owner occupied multi-family FHA loan is for Dallas County. I'm just trying that approach to minimize my cash exposure so that I have money for other projects.

Awesome content. Thanks, Kevin!

If anyone has anything else to point me in the right direction please keep posting.

I'm ready to expand my RE investment portfolio by jumping into multi-family in Texas. I want go the house hacking route and purchasing either a Duplex or Triplex with an FHA Loan to minimize my cash in the investment. I literally want to be in and out of the property in 12 months so that I can move onto the next one.

I see a lot of scattered information on this concept but haven't found anything linear to get me from A to B. Can anyone point me in the right direction? I'd like to know how to know about how to shop for it(MLS, wholesale, HUD, etc.), financing(different options and where to find a knowledgeable multi-family broker), and how to crunch all of the numbers so that I can properly vet a good deal. If there is an online guide, that would be optimal.

Could someone point me in the right direction? Thanks!

It's a long weekend and I can't contact title company to know where to go from here.

Let me see if I can post the assignment contract and mark out the sensitive info.