All Forum Posts by: Ray Harrell

It's a duplex so can likely be covered under a regular homeowners policy. Insurers don't care if you live in a property or not. They are not attached to FHA rules. The insure BUILDINGS and potential liability to that building. AS for the bank, if they see you changed your insurance to a landlord policy, they may get suspicious, they may not. As I said, the cost and time required for the lender to prove that you haven't lived there for a year is not worth the fight. Also, your loan was likely sold, and as long as they are getting their payments, they usually don't care. I have NEVER heard of a lender calling a loan because the owner didn't live there.

I purchased a 3 unit fully occupied through FHA in 2016. By the time I was able to secure a unit, it was well beyond a year, because I had to honor the leases. I ended up buying a different place to live in and continued to just rent that place.

Formal Answer: You should not try to get around the requirement. That requirement is there to prevent investors from buying investment property using low-cost FHA loans. These loans were designed to provide primary housing to first time home buyers.

Practical Answer: Nobody will ever check to see if you moved into the property. In fact, your loan will likely be sold within months of closing, and the new loan servicer only cares that you make the payment. HOWEVER, if for some reason they do find out, they have the option to call the loan (demand the balance in full). Truth is, by the time they send someone to investigate, prove it, take you to court, the year has passed, and you are now in compliance.

If he's violating his lease, why don't u just terminate it now. Why are you so eager to get into his unit?

If it's touchup paint, I wouldn't do it. Painting is done upon move out. If you start responding to these little things they will call you for everything, including changing lightbulbs. Have a minimum amount for which you will respond or send a handyman. Tenants have to take care of minor repair and maintenance issues.

When you say sprinkler system, do you mean fire sprinkler, or lawn? If fire, by all means get it fixed. If lawn, meh...I would just turn it off and let nature take care of your lawn. The fact that someone once installed a sprinkler system and now it's a B- neighborhood doesn't sound promising for the direction.

In Chicago you can look up the permit status for any address.

Does anyone have a recommendation for a company to replace window screens? The last window company came and took them and ran away with them. We now have about 20 windows without screens.

Or you could follow your local ordinances. No contact for 31 days and rent not paid = abandonment and you can enter and dispose of property!

Metering is very expensive. Need permits, rewiring, plumbing. Just raise the rents by the max bill over the past two years (divided by number of units), plus 10%.

Direct mail for what? What are you advertising?