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All Forum Posts by: Skylar Lee

Skylar Lee has started 1 posts and replied 9 times.

Post: Myrtle St, Oakland flip

Skylar LeePosted
  • Oakland, CA
  • Posts 9
  • Votes 2

Wow great job!!!

Lovely home! What contractor did you use to restore your home? I need to restore my own home. It is an old Victorian that was built in the 1950's.

Originally posted by @Rob Suhai:

Hey @Skylar Lee do you think the seller would entertain seller financing on the deal? I'm not sure of the numbers on the property, but might be something you could consider. 

 Havent thought about that, but I can ask. Thanks for the suggestion!

Originally posted by @Chris Mason:

@Skylar Lee, happy to help. Hit me up when you're actually ready. I will do this amazing thing where I don't encourage you to commit fraud. Yay!

Sounds good! I will definitely reach out to you once I am ready.

thank you for breaking the requirements down! I'll just have to hold off then. From what I'm reading, I will have to put down 20%. Or evict a family. 

Originally posted by @Chris Mason:

@Skylar Lee, if you aren't going to live there then FHA is off the table immediately anyways, so that discussion is moot.

Neither Fannie nor Freddie will do 15% down on a duplex investment property. Fannie will do 15% down on an owner occupied duplex, but in your situation (where you publicly posted on on the internet that you have zero intentions of moving in) that would be flagrant mortgage fraud and a bad idea.

So the two possibilities are...

  • Your lender is using a portfolio product and will be holding the paper. This very well may be the case.
  • About 5 minutes after you go into contract, your mortgage gal is going to pitch you on the wonderful idea to engage in mortgage fraud.

true ... Either I'm gonna wait or go in on the deal

Originally posted by @Al Wilson:

Either that or wait until you find something that you can actually afford.

Originally posted by @Rahul Bhatt:

ome option  to take some partner who is Willing to put money. 

 That may be my best option. Thanks! 

Hi Everyone,

I have been working in the real estate industry as an accountant for quite some time, and have always wanted to invest as well.  I need advice on financing a multi unit duplex in Oakland with existing tenants that I will not be evicting.

Here is my situation:

There is a duplex in Oakland that have existing tenants in both units. I would like to purchase this duplex as an investment property and do not have any intentions on moving the families out. I have been preapproved for more than asking price with a low interest rate of 3.75% with 10% down for a conventional loan for a single family home. Now, here is my issue.. my lender said if I were to buy a multi unit I would have to put down 15% due to new lender requirements. I don't want to put down that much cash for my first property. Is this accurate? I read a few blogs and it sounds like a few people were able to finance a multi-plex with less than 10% down.

I understand that FHA allows you to put down 3.5%, but the larger unit has to be owner occupied. And I also read how much of a headache FHA requirements are and how it can delay your purchase with all the improvements that may require you to perform. I don't know how viable FHA would be in this market where homes are sold faster than they are being listed. I don't think the sellers will be willing to wait for FHA to approve the home.

Bigger Pocket Community - PLEASE HELP!

Thanks in advance,

Sky