All Forum Posts by: Thea Linkfield

@Kristen Ray permits are necessary from the city in order to prove the work being done is done right. The permit itself is authorization from the city to do the work. If you don't pull one, and the city finds out, you could be fined a good chunk of change. Additionally, they may require you to redo the work. For instance, if you're doing a replumb of a bathroom, you'll need to get a licensed plumber to pull the permit from the city. The city inspector will then come out and do a pre-inspection of the work. The plumber will "rough-in" the plumbing pipes and valves and the inspector will come out and do a "rough-in" inspection. Then the plumber will finish up and the inspector will come out again and do a final inspection. The inspector is making sure all the work is "up to code". Please note that in order to pull permits, the specific contractors must be LICENSED. This is why certain contractors may be more expensive than others: they're putting they're butts on the line with the city. 

This will be the same process for things like structural, electrical, roofing, etc. If you're doing cosmetic things like painting or tiling a floor, a permit won't be necessary. 

Keep in mind, every city is different on what requires a permit, so it's best to talk to professionals in your area about certain instances. Another way to go about it is to pull a "homeowners permit". The same process will occur, but you're legally allowed to do the work yourself if you want to. You still have to pay the permit fees and you still have to get it inspected, and you have to ensure you're doing it yourself and not hiring it out.

@Cara Lonsdale this is immensely helpful! Thank you! I thought your first few points about FHA/conventional and first time buyer loans was true, but just wanted a confirmation. He has more than enough for a down payment, we were just trying to leverage as much as possible. He will do the 20% down.

As far as the easement, I completely understand. The purchase price reflects the risk/concern. The plan, if things go south with the neighbor, or even if they don't when we get the time to, is to build a driveway from the easement that is on the back side of the property. I'm interested in the CC&R or deed restriction possibility though. How do you go about getting that?

You could use Brandon Turner's advice and say something like "After talking with my partner/lawyer/etc.... he said 15 days is too long to allow a tenant to go rent-free...." or something of the like. And then throw out the word "eviction" and it might scare/motivate them a little.

Thank you @Andrew Hoelzel that article is a good, helpful read about FHA loans.

I think I need to rephrase my post. It's actually my boyfriend buying the property, so we are researching this for him. We are not using an agent, and the seller's agent has mentioned that he doesn't think we will be able to get government financing because of the lack of legal ingress/egress onto the property. Like I said, the current owner and previous tenants have used their driveway which cuts across the neighbors property. Does anyone have insight on whether this is something that would disallow us to get FHA loans?

Additionally, we don't plan on living in any of the units. Because of this, we don't think we'll be able to get owner-occupant financing on the property. We are wondering if we could find a loophole to that (in order to put less than 15% down) because his current "primary residence" is my house. He could switch his "primary residence" to one of the units on the property and use it as an Air BNB, maybe even actually staying there sometimes. How do the lenders know if it is your primary residence? We aren't trying to be schisty, just trying to find out if there's a legal way to work around this. If not, not problem, he will throw the 15-20% down.

Hey BP Community! I am about to put an offer on a property, and I am trying to figure out if I should go with an FHA or Conventional Loan for my finance option. I currently do not have a mortgage, and am looking to purchase this property as a rental. It has 3 buildings on it that can be rented out, and I am considering doing one as an AirBnB. This would be my first time buying, and I am wondering if I can use the Florida First-Time Buyer Program for these intentions. Also, there is some potential issues with the property survey that show the current home's driveway on the neighbor's property. This hasn't been an issue in the past for the current Owner since it is her brother's property. Can I still receive an FHA loan with an "issue" like this? Basically, I want to make sure I get the best bang for my buck on my first investment property! Any help is greatly appreciated!

Thank you @Austin Fruechting and @Seetha G that's exactly what I was looking for!

I am trying to read 1 real estate/business book a month so The One Thing will be my next. Ironically, I have read about 80% of  Miracle Morning, so I will buckle down and finish that one this month.

@Robert Ian Oldroyd I am in a similar situation. I have been interested in real estate for a couple years and purchased my first flip over a year ago. My parents have done a handful of flips/rentals throughout their life, but pretty conventionally and not aggressively. I've done a lot of homework on my end and peaked my dad's interest even more than he already had. As a result, we've gone into business together on a flip. 

Working with family can be like walking on eggshells. Having 2 people in charge can be hard, so establishing one person in charge of certain decisions from the beginning would be beneficial. 

For our partnership, we've both brought something to the table. I brought thorough research, aggressiveness, and some capital, and he's brought more capital and wisdom. We have no written contract, just verbal understanding of how the deal will pan out (because our relationship is strong like that). But establishing the profit split at the beginning was essential. As the younger, less experienced person, I offered less profit for myself in order to use his capital and build my portfolio while doing so.

The one thing to be cognizant of is working with family can put a strain on the relationship. You must both be on the same page and be able to separate business from your familial relationship.

Thank you @Zack Karp I did not know about the "flipping" guidelines so I appreciate the heads up! I will look into it.

On the same note of transferring a house from my personal name to an LLC.... I purchased a house with cash and want to transfer it over to an LLC before selling it for tax purposes. Is there anything legally wrong with doing this?

I know I'm not the only one out here that starts a million tasks and never finishes them. Or has a million ideas in their head but has a hard time following through with many of them. I want to flip, buy-and-hold, BRRR, do EVERYTHING! I look at a million houses but rarely make offers because I don't follow through. I start a project around the house and the supplies are in the way for the next YEAR.

Knowing there's more of me out there, my question is, what recommendations do people have on books that specifically focus on focus? I have a feeling Miracle Morning would be a good start...