All Forum Posts by: Robert Bowles

Yes you can.  I helped a realtor buy a 4 plex a few months ago, she did have to sell it to her broker, but now I have a few people in her office looking to use it.

http://portal.hud.gov/hudportal/documents/huddoc?i...

4155.1 5.B.6.d Real Estate Commission From Sale of the Subject Property

If the borrower is a licensed real estate agent entitled to a real estate commission from the sale of the property being purchased, then he/she may use that amount for the cash investment, with no adjustment to the maximum mortgage required.

A family member entitled to the commission may also provide it as gift funds to the borrower.

Reference: For information on gift fund requirements, see HUD 4155.1 5.B.4.

Good luck.

Crashpads are great income producers, but if you are not crew you might run into issues getting people to replace the crew you already have.

I currently am a partner in 3 in DTW (I retired a few years ago) with someone who still flies.  The turnover can be difficult.  You can run into people that base jump every 6 months or have people that stay at the same base forever.  It would be a good idea to see how long these people have been at the crashpad.  Also good to know how many people are at the property.  Some are run like hostels, mine have 2 to 3 people in every room and they all have their own bed.  I have heard of more than a few that are more of a free for all.  

If you do have people move out you might not be able to get the word out that you have an opening.  You can't get into the crew rooms (unless someone there will put up flyers for you) and you probably can't get into the crew web sites.  If there was someone there to "manage" for you it will make your life much easier.

I think you will be stuck with financing as an investment property unless you plan to move in.

Good luck.

Below are the underwriting guidelines from FHA regarding occupation.

203(b) is what most people call "normal "FHA loans. You might also see 203(k) (rehab loans) but not as often.

Typically when my clients buy the property they raise rent almost immediately and give notice to at least one tenant. It will depend on the leases in your scenario if you can do that. They then occupy the property while bringing rents up and doing any upgrades...then get out of the FHA loan into a conventional without MI.

With any loan that you purchase a property as your primary residence you will be stating at closing that you intend to occupy the property for one year, otherwise you would be looking at non owner occupied so that would preclude you from using FHA.

Give Erlin Taylor a call at A&G.  She has been a great help to me.

Erlin Taylor

Managing Member

A & G Rental Management LLC

1800 SW First Avenue

Suite 640

Portland, OR 97201

503-241-0676 Phone

503-243-2805 Fax

I have used OdoBan with real good results.  You will need to remove everything you can that has been marked, but this worked really well on a hard wood floor, it was a last chance before we ripped it out and it saved me a LOT of work.

It is an enzyme cleaner so something else like it might work as well.

I bought it at Home Depot.

Officially Fannie said they were wrapping it up on the 7th of October.  I have lenders still pricing it out, I have not sent anything that way in a while, so not really sure.

I looked up a few updates, and you are correct.  Currently can only be used for contracts signed on or before the 6th.

Sorry to mislead anyone.

Unfortunately you need 25% down for a 3-4 until property even if owner occupied.

Below is a clip from one of my lenders about LTV with HomePath.

LTV/CLTV/CREDIT SCORE CONFORMING LIMITS (2096-25):

LTV: OCC: UNITS: CREDIT:

95%     Owner                1 unit                   660

95%     Owner                1 unit                   660

80%     Owner                1-2 units              620

75%     Owner                3-4 units              620

90%     2nd Home          1 unit                  660

80%     2nd Home          1 unit                   620

90%     Investment         1 unit                  660

80%     Investment         1 unit                 620

75%     Investment         2-4 units           620

Talk to your broker about purchasing it as a second home.  As long as you qualify for the payments of your current home and the new property then you should be good.

I have a ski cabin that I use AirBNB and VRBO and knock it out of the park.  Brings in double what I could rent it for...and I have a free place to stay midweek when I ski.  We are working on a property downtown right now that we plan to use exclusively for AirBNB and VRBO. 

My wife an I use it when we travel almost exclusively (she currently is staying in one in SAC while she is taking a class), and have friends and clients in Portland who have ADU (granny flats, accessory dwelling units) and rooms that they rent that pay their mortgage and LOVE it.

In terms of using it to increase your RE holdings the only issue I have been running into is not being able to qualify using the short term rental income.  As long as you can carry the debt it is fantastic.  Make sure your area does not have issues with nightly rentals, we are very fortunate here that they are allowed but some areas only allow 30 day rentals.

Good luck.

There are a few lenders that allow more than 10 financed properties.  Talk to a local broker and see which Non-QM loans they have available.

I have been using Impac's investor program lately, AltQm Investor.  purchase or refi, unlimited properties (only 8 or $2 million with them), 75% LTM,  680 mid score, cash out up to $350,000.

I only do loans in OR and WA, but assume the program is available where you are.