All Forum Posts by: Nicholas Covington

@Monica Marusic Hello!

I'm kind of surprised you got the daughter to agree to the credit check. Background check is indeed a necessity, but I wouldn't agree to a credit check if there was no need for me to do so. But that's all personal preference. 

Daughter just needs to be listed on the lease as an occupant that has rights to the property. She does not need to cosign as mother is qualified alone to handle the property.

Best of Luck,

Nick

@Jeremy White Hello!

If you are talking about fixing and flipping and you want to know how much it worth afterwards before selling, that's up to you but a realtor (a good one) would be able to give you a ball park without paying for an appraiser. Still the buyer would 99.9% of time be paying to have one done as well when you decided to sell. You would find out either way, just depends on when exactly you want to find out.

Best of Luck,

Nick

@Kenny Engel Hello!

My question would be do you have any type of income. You don't have an W-2 income, you don't file taxes, you aren't labeled as self employed. This might seem silly, but again do you actually work?

Other than the great suggestions of others, another area would be looking into owner financing. Little harder to find, but they are out there for sure! You would just have to convince them that you are making money and can pay based on the terms agreed to. Most will want you to show some type of proof of income, but like they say MONEY TALKS!

Best of Luck,

Nick

@Paul Schackman You are correct if it is indeed considered to be an 8 unit property. But this does not seem to be the case from the information you provided. It seems like the listing agent/person just decided to put 8 down since that is technically the number of units for sale. Technically it should have been two different listings.

Classification might differ based on the lender, but you won't have a clear answer until you ask them. This would be in regards to how the land is divided. 

@Yvans Cator Jr Hello!

If you are looking to read other's answers to this specific question I would just give a quick search as there have been TONS of people that have given great answers to this.

In regards to your specific circumstances IE first time and full time work, many people would probably say stay away from a fix and flip situation. Unless you have solid people in your corner that would be able to assist you in doing the work for you (property manager) I don't see that being a viable option for  you. Can it be done? Yes. Should you put yourself in this situation? No.

A buy and hold (rental) situation is MUCH more manageable if you are able to find the right deal and something that needs little work done (refer back to fix and flip statement), think turnkey or a property with a tenant already there. Again a good PM would make this much easier to deal with while you focus on other things, like your current job.

You can do anything you put your mind too, with the right amount of due diligence and some good 'ol luck!

My advice would be to soak up some more knowledge and search for that great deal locally. You will learn more from it because you can be a little more "hands on" with it, rather than checking in from a distance from another state.

Best of Luck,

Nick

@Paul Schackman Hello!

In regards to any other type of mortgage, unless you own your own business and plan for that business to purchase the property it would only be a residential mortgage. Unless you plan in living in one of them then FHA/VA isn't an option either. So it would be two separate mortgages, which should be fine granted you are qualified to carry both of them.

But yes, that would be counted as 2 4-plex and need two separate applications.

Best of Luck,

Nick

@Tristian Cox 

As one should! Everyone LOVES great tenants! I am sure there are tons of advice on screening tenants somewhere in the forums. Just do a quick search and soak in the knowledge, you might come across something new...well more like you will!

@Steven Trumpet Hello!

What are the rest of the terms, how long, how much? The thing with seller finance is there is no "fair" option as there are so many different ways of creating terms. That is the beauty and the beast of the agreement. 

Sounding fair would be based on what you are and the seller are comfortable with. Does this sounds like a good deal to me, well you are getting better terms than a bank loan in regards to interest rate and that is a relatively small down payment in regards to commercial property. Plus you don't have to go through a bank...seems like a win-win. But again depending on the rest of the terms.

Best of Luck,

Nick

@Tristian Cox Hello!

Income is not a discriminatory factor unless denying based on receiving public assistance. So in this case you are allowed to ask for bank statements to verify proof of income to afford rent. The only thing is that they are not required to do so, even if asked.

Best of Luck,

Nick

@Josh Barker Hello!

To start I will say that a lender will probably have a hard time believing that this will be your father's primary residence as he would be required to live in there technically. 

When taking out a VA loan for a subject property in another state, lenders will want proof as to why you are doing so. IE received new orders to relocate, relocating for job, things of that nature. Potentially he could be moving to be closer for you to "take care of him," but I don't see this going in your favor since he just transitioned.

Also you would have to find a lender that is ok with having a non VA eligible family member (other than a spouse) attached to the loan. Normally this will effect the VA program and won't insure the full 25% of the loan amount. This would force you to come up with a down payment (potentially 12.5%), which would partially defeat the purpose.

The only other option that I could see flying by a lender is him just getting the loan on his own, provided that they believe him to be living there, and you just assume the loan later after their specified amount of time.

So the main hurdle would just be that he won't be using it as his primary residence.

Best of Luck,

Nick