All Forum Posts by: Nnabuenyi Anigbogu

https://www.fanniemae.com/content/eligibility_info...

as of june 2015 For fannie mae you can reference the table above. Fannie desktop underwriting allows up to 75% ltv for a 3 unit so you will need 25% down to go that route. Now there are banks that might allow lower downpayment with other compensating factors (high credit or high reserves or low DTI) and there are other ways to get a lower DP as long as you get a bank willing to work with you. As it states on the guidelines there are exceptions.

If they follow strict fannie guidelines then it is hard to do. 

If you are a first time homebuyer there are illinois programs that will allow you to get a lower payment. They take longer to process but are well worth it and are usually cheaper than FHA.

For what its worth i was able to purchase my 4 unit in May for 20% down in chicago. So you might have to check around with a few banks.

I would agree with Jscott. Line up your potential financing sources first. Maybe get a few pre approvals. For MLS deals you often need pre approvals submitted with your offer or POF. Same with deals you get from wholesalers.

@Sam Alpha @Andreas W.

I don't see an issue with your having the two primary mortgages. Your only issue is having a hard time selling your previous house. So you should not worry about sleeping well at night based on fraud. You should only be restless based on the the fact that you are paying for two mortgages.

As long as you lived in the previous house for at least a year and then bought the new one as a primary residence (meaning you moved into it after close) you are fine. You are not required to sell or refi the old house as a rental or second home unless you want to. You can actually hold on to it with the current loan. Plenty of investors (me included) do this and use it to acquire rental properties (it just takes longer since you have to live there a year).

Second house status and rental property status only applies if you buy a house without any intention of moving into it after close or if you have owned the house you currently live in for less than a year (standard owner occupancy minimum in the affidavit you sign at closing). 

I can't wait. I was unfortunately unable to attend the last one and was not happy about that.

Welcome to the site Tony. Definitely a great place for information. Make sure to check out the podcasts.

Congratulations guys.

You are my go to source for commuting listening. keep up the good work.

Wow!!! I hope that this works out well for you. Unfortunately you made quite a few mistakes renting to these tenants. Hpefully you learn from them without paying too much money.

Im not 100% sure on WI law but if that was in Chicago you would have to go through the whole eviction process which can take 6+ months here. I hear WI is more landlord friendly so i hope that is not the case there. 

I am 100% in agreement with @Jay Hinrichs. D class areas offer GREAT returns ..... on paper. even in my limited experience (about a year and half of REI) i have seen examples of this. I have a good friend that currently makes about 1500 a month in cash flow from one property after accounting for expenses. That is quite a lot. However it is in a D class area with a 60K 4 unit (in Chicago that is CHEAP). All it takes is one eviction or nonpayment of rent to kill your cash flow for the year. He had one tenant stop paying and he lost all revenue from that month. He is lucky he was able to pay them to leave or it could be worse.

So be very careful with those and ensure it is a neighborhood you know and can live in.

As for the inspection its hard to know if you should be worried without knowing what the inspector pointed out. When i bought my 4-unit i have a 50+ page inspection report. Half of it were HVAC that were at end of life (they still work though) and two or three things were actually serious. I was able to get credits from the seller and i fixed those up asap once i closed.

Hello Alvin, 

Welcome to BiggerPockets. This is a great site and you will learn quite a bit sticking around. Be sure to check out the Beginner Guide to real estate investing. It is quite a book.
http://www.biggerpockets.com/real-estate-investing

Congratulations. I know that feeling. Its crazy the amount of things you need to get done prior to closing. Dont worry you will own it soon enough and then its another o crap moment at that point. lol.

Good luck. Im sure it will all work out.