All Forum Posts by: Paul Hitchings

 How is the OP going to qualify for financing on a 2nd home with a mortgage on the first home? As far as I understand, he (and other cosigners) would need to qualify for paying both mortgages at the same time right? Unless he classifies his current residence as an investment property and then rent can be tallied against the mortgage? There are specific rules about what you tell the bank you're borrowing the money for and what you end up doing with/to the home...

The courthouse doesn't have "lists", usually. Most investors use 3rd parties to gather this info. Technically you could look up recorded documents, but how do you know what address to request recorded documents for? Eviction are filed in court, but there is no such thing as a "court list of evictions", you can look at the calendar of evictions for a court on a given day though.  

What would you do with a list of evictions anyways?

not unless you have previous construction experience, a wad of cash saved up, gobs of free time and a pension for self-punishment ;)  

Are you going to be working a FT job and living in the property during the remodel?

We talking flip or BRRRR?

Very interesting feedback Shannon, thank you for sharing! I didn't know about the added closing costs, never done an FHA with a client personally.

 Finding professionals that don't run at the sound of "FHA203K" is a start! :)

The biggest thing with FHA203K is there are many special rules and timelines. 

I would highly recommend working with an agent, loan officer and preferably title company familiar with the process. This isn't the type of deal you want a rookie working on.

They are an amazing tool, though, if used correctly. 

Is it a good idea? Well, it can be, if you don't have cash on hand to do repairs. Who doesn't want to borrow construction funds at a cheap 30 year rate? Like I said, the biggest "risk", is that if you make too many mistakes during the process the whole thing might fall apart.

Work with experienced professionals and stay ahead of the curve and you should be fine.

Have fun :)

Best use principle. Best use of SFR is to live in, best use of multi-family is to cash flow. Rent collected vs. mortgage on a multi-family is better than rent vs. mortgage on a SFR, usually.

And congratulations on paying off your student loans and saving money by living with your parents! You truly are on the path to financially independence :)

I'm following this conversation, looking to do something like this in Detroit except my plan involves a contractor willing to sleep in an inhabitable residence :) 

Starter homes. Can't remember what video I was watching. Makes sense though, they have been renting forever and are now buying.

What loan program are you going to use?