All Forum Posts by: Todd Aaron

I am being told that I can get a conventional loan (as long as I am owner occupying one side of the duplex) for more like 5% down. 

The one I am looking at is a really old structure in an area that is a national historic district and the neighborhood is experiencing a revitalization... But, this structure needs several small repairs that, I believe, will keep it from passing an FHA inspection. I haven't shared that thought with my lender yet though.

My lender wants to sit down and discuss the benefits and drawbacks of going FHA versus Conventional.  I am interested to see what this consists of.

I am making an offer on a duplex to occupy half and rent the other half right now (my first investment property).  My finance guy is checking to see if first time homebuyer rules (I qualify for First Time Homebuyers because I have not owned real estate in the last 3 years) will allow a duplex where you rent one side and occupy one side. 

Looking like FHA or conventional owner occupy type loans are available for this type of property and I believe that is true for up to a 4 unit property.

Apparently the insurance will need to be a landlord insurance policy... Get enough insurance to cover your contents but not the other unit's contents and make sure to stress to the renter that they really should consider renters insurance to cover their belongings because your insurance policy does not. 

Thanks Steven!

Sounds like a solid plan.  

 Thanks Tom.  I sent you a PM

 Thanks Charlie! 

Hi again! 

I introduced myself awhile back here but just after that I fell into a lot of reading and some of the learning curve that can be massive (which I am still in btw).  

I live in Tyler, Texas and I spend a lot of time (mostly weekends) in Austin.  I am in Austin right now actually, doing some work on a friend's property here which is in the process of ramping up to be a Short Term Rental.  They are doing all the work themselves and I am helping them and honing my rehab/remodel skills along the way. 

The area I am most familiar with in Austin is the Hyde Park area and the lettered streets area toward 35.  The property I am working on here is on 38 1/2. The values of properties here are insane compared to Tyler!  A 2/1 here in Austin in this area is valued somewhere in the $300K-$400K range and could be picked up in Tyler for $100k or less.   

My goals are still ultimately to own rental properties, however I have come to the realization that I will need to increase my capital significantly on the way, so I am looking at doing some flips to generate the needed income over and above (and possibly eventually replacing) my day job. 

I would like to meet some who are doing this successfully in my areas and really understand what I am getting into especially with flips.  I have been out of the residential construction industry for a long time, but I used to be a residential electrician and have done some residential framing and odd repair/remodel jobs previously... but it's been a while.

Seems the more I read, the more questions that generates and it would be nice to develop some relationships with others close by who are doing this, and possibly end up working together on some projects in the future.  

I have J Scott's Book on flipping houses (working through that one now) and his book on estimating rehab costs.  In the flipping book he recommended a book called Inspecting A House which I have acquired a copy of... and a friend who has a few rentals introduced me to her friend in Austin who (her husband) does construction now after starting with flipping houses years ago, who recommended a book on flipping that was actually written by her brother called "Flip: How to Find, Fix, And Sell Houses for Profit by Rick Villani. Haven't gotten to that one yet either.

Books are great, but I would still like to get personal relationships going. 

This site is massive! 

Well, I am heading outside to (hopefully) finish installing a fence and straightening a slightly leaning detached garage before making the 4 hour drive back to Tyler this evening. But I'll check back in on breaks.

Thanks,
Todd

@Mike M., Thanks!  

That sounds encouraging that there is a meeting group that close.  I would like to see about attending.  

Also, maybe we could meet up some time. I am at Good Shepherd Hospital a lot with my day job, so I am in Longview from time to time.  

Thank you @Andrew Syrios! 

Thanks @Andrew Herrig!  My aunt lives in Whitehouse on Gardenview just south of the elementary school. 

Man, that sure sounds like a positive environment here! Really glad to hear it! 

Thanks @Shawn C.!