All Forum Posts by: Vy Mai

Problem: Houses are too expensive in an area where we want to send our kids to.

Plan: Sell our current house and hope to get $100,000 after all the expenses of closing costs and commissions. Buy a multifamily to rent it out and live in one of the unit. Then, move out within a year to buy a residential house in that expensive area for our kids to go to school. We are doing all this in hope that the cash flow from the multi-unit will help support us if something happen to our job.

Question:

Our budget is $400,000 for the multifamily and $500,000 for the residential house.

Should I put down 10% to buy multi-family or should I do all 20%?

Will the bank approve another loan within another year?

What would you do in my position with $100,000 in hand. I would love to hear creative options/ plan or problems that I might face with this plan.

@Russell Brazil Thanks for letting me know. I was scared to shop for multiple lenders when I bought my house because I was scared that it's going to pull my credit score down

@Natalie Kolodij, @Austin Fruechting Thanks for clearing it out :)

Whenever a person buys a property, they have to go through credit score checks right? So how does investors buys houses like every month. Does bank check the credit score every time they buy or how does it work? Because if that's the case, that's gonna pull your credit score down so much right?

We are trying to sell our home and going through FSBO route. Where can I find all the paper works that needs to be done? Should all the paperworks be filled out by us or real estate attorney, for example: purchase and sale agreement. Any advices, websites and books recommended are greatly appreciated

@Joe Splitrock.@Andrew Johnson Yes, monthly rent is $1900, rental property mortgage + HELOC is $1500. Right now, my safest route is paying off the HELOC and then take it out again to buy a third house. However, it would take at least 2 yrs to do so. So that's why I'm scratching my head :). Thanks for your confirmation!

We took out equity from our residential house for a 20% down payment for our 1st rental property. We've been renting it out for a year now.  Looks like the house has appreciate 25K more than when I bought it. What can I do to buy a third rental property? Can I take equity out from the rental property?...I'm hearing a no in my head but any advices?

Thanks for all your valuable advices :)

@Steve R.  Good idea, maybe I will have it wired that way. I don't want to charge them money, I just want to be able to say that I would just to make them more aware of the situation. They only lived here for 3 months and it's starting to look pretty gross in the bathroom. 

@Eli Molloy Yes there is an exhaust fan but I'm not sure if they use it. They said they do.  I never see this problem in the past but because my past tenants were a family of 3 and they were the seller of the house so they took better care of it.