All Forum Posts by: Matthew Mason

Numbers should be run as if you are not living there as it will become a rental

Usually they only require 5% equity for conventional OO SFR so you could most likely refi as long as all income is in line, refi this before you move out for a lower rate then look into using another FHA

If there is sufficient equity you could refi first FHA into conventional(depends on appraisal) then you would free up the FHA to land a MF, it's possible to get two FHAs but very tough especially going from SF to MF

How long do you need to wait to REFI an FHA into conventional? Purchased duplex about 4 months ago and would like to use another FHA to buy and move into another duplex about 20 miles away in a nicer area. I understand you can only have one FHA at a time.

 Are there any equity/time requirements on current property refi into conv.?

Is it realistic (to be able to) to refi and buy another duplex in a nicer area with an FHA if I can justify wanting to live in a nicer area?

Trying to weigh options and plan!:)

Thanks to all who contribute!

Agents are free for buyers... doesn't hurt to use one to quarterback the transaction. That being said, if you do not use one you may be able to negotiate the price down a little more because the commission paid from seller is not being split between two agents.   Now if you have a solid attorney and mortgage broker or MLO I don't think it is too difficult to close on the property without an agent.  All about your comfort level !

I recently(2 months ago) closed on my first property. owner occ duplex. I got a great deal on the thing about 20% below market and used a FHA. After closing on the loan and the couple bigger projects I completed I still have a good amount of cash left! What is the best way to purchase a 2 duplex!? I know there is a regulation stating you need 2 years landlord experience to use rental income to offset mortgage debt, while my income is decent I certainly cant qualify for two mortgages. Ive looked into seller financing a bit... any suggestions on options or should I just stack ca$h for the next two years?!?!?

Thanks!!!!

I'm in the process of purchasing a duplex that I will live in. At first I wanted to go conventional to avoid lifelong pmi but quickly realized on a multifamly (even OO) you need to put down atleast 15% of purch price, I'm buying t for 102k. My choices are FHA with 3.5 down. Total cash to close around 11k with a 960 monthly payment or conventional 15% Down 21k cash to close and a payment of 900 a month..... Cash is king and I chose the FHA so I will have money for another property in a year or so!

If you have done your research on properties In the area and it's a deal you should move on it. It depends if it is a fsbo or on the market, if it is on the market you will need to contact the selling agent and ask to see it and numbers for the property(they will usually have provide you with them if you ask) if it's fsbo you will need to contact the owner via number on the sign or Internet. Have a mortgage broker/ pre approval and attorney standing by:)

Hello John!

I will be moving in downstairs and renting upstairs out!  right now its going for 650 but I will be bumping it up to 750. My mortgage with both taxes(4000) and insurance(1200) will be right at about 900   I will have someone live with me as well and pay around 200 or 300 so my full mortgage will be paid!     once I move out in a year or two the downstairs will easily be able to go for 900 providing a nice cash flow between 200 and 300 a month after all is said and done.

Whats going on fellow BPrs

This is my first post on this site though I have been poking around for the past few months. I graduated college about 2 years ago and am currently in the process ,under contract, of acquiring my first duplex(of many ;p)

I first became interested in real estate when I graduated college and started reading about financial independence and how to achieve it. If you haven't read rich dad poor dad stop what your are doing and go read it.   One of the most popular questions I find when browsing through this site is "how to get started, what to do"   My main advice is read read read, then read some more. If you are serious go on amazon and search real estate books more specifically investing in duplexes or whatever your plan is. Go spend a hundred bucks on 5 or 10 books. If that seems like a big commitment maybe you should rethink everything. My favorite book was Brandon's on  rental property investing. While you are reading and learning you should be watching the market in your target area. I used both Zillow and Trulia and browsed both daily for over 6 months.  Obviously saving for a down payment and closing costs should be a propriety along with knowing your credit. Rome wasn't build in a day. be patient, make a plan and work your plan.

So I knew I was finally ready to jump into the big deep pool of real-estate and it was time. Because I had been watching the market and keeping my eye on prices and different houses for sale in my city I knew right away the deal im currently in is a steal! It was a FSBO on a nice little street right next to downtown and a beautiful Adirondack bike path. 2 car garage/ fenced in yard/ forced heating/ and W.D. hookup s in both units. (up and down) about 1800 sq ft 3 bd down 2 bd up I found it by driving by and seeing the sign and calling the number on it. I was expecting the seller to ask for 130 - 150 when they said 105k I knew I had to move quick! the next day they showed it to me, I brought my buddies dad who owns a big contracting company in town to be my experienced eyes because even though I knew the numbers looked great I didn't want to miss anything! After seeing the house he told me good find and if I didn't buy it he was going to! this was great news and I moved foreword immediately with an offer of 102 that was accepted.

Im the first to admit that I know next to nothing about real estate investing / building / fixing up.  My advice is set your mind to it and go all in if your going to do it and when that deal pops up like it did for me GRAB IT.   Once you are seriously looking make sure you are pre approved and have a reliable real estate attorney standing by to draft up a contract!

Abe Lincoln once said, if you give me an axe, tree, and 6 hours to chop the tree down. I would spend 4 hours sharpening the axe.

-Matt