No real news to speak of. I'm still waiting on the buyer's requests from the inspection (I should get that info today), and I applied for pre-approval of the next mortgage. I have yet to hear back about that, which would normally be troubling, but I asked for a lot. Here's what I asked for, after furnishing all of my pertinent money information:
Pre-approval amount for an FHA 203(k) loan
Pre-approval amount for a regular FHA loan
Pre-approval amount for a conventional loan
I hope to hear back about each of these things this week. Also, these requests didn't include a co-signor (my mom co-signed the first one), so this may be only the first round of pre-approval requests.
While it may seem dumb to ask for all of these things, I assure you that it has been thought through (though I cannot give any assurance that it is not dumb). While it would be easier to get the same loan I was granted for my current address and go from there, that may not end up being the best strategy. It's complicated (not really, but I'm generally an idiot), and I may lose people because I'm not a good writer, but here's why:
The plan is to get into a multi-family (3-4 units) as soon as possible after closing on the sale of my current house. In order to do that, based upon the months and months it took to close on the house I live in now, the dwelling probably can't be a foreclosure. Since it may not be a foreclosure, I may not need the vast amounts of money it takes to rehab the place. The profits garnered from the sale of my current house may cover the expenses. If that's the case, I may not need the 203k loan (as it will give me funding needed to rehab). Again, if that's the case, a conventional or FHA loan will suffice.
If a conventional or FHA loan do suffice, then that may leave the door open for Round Three of this endeavour by allowing me to apply for an FHA loan to cover the costs of rehabbing a multi-family dwelling that has been foreclosed upon. The FHA doesn't generally like folks using their 203(k) program for house flipping (so please do not tell them about this blog), so I wouldn't be approved for one if I applied shortly after purchasing the aforementioned non-foreclosed upon multi-family place.
In short, and hopefully more succinctly, here's the rough plan:
Buy a multi-family with three or four units ASAP with a conventional or FHA mortgage.
Shortly before or after purchasing the first one, make an offer on a foreclosed three to four unit multi-family dwelling.
While waiting for the foreclosed upon multi-family place to close, rehab the first purchase, using profits from my current home's sale.
Once the foreclosed upon place finally closes, and is in my possession, the first place should hopefully be finished up, and either rented out, or put on the market for sale (or both).
Put the first place on the market and work on the second place, hopefully using funds from the FHA's 203k program.
What are the chances that this plan actually works? I'd say terrible. There will, more than likely, be some issues with the mortgages and some sort of restrictions on what I can buy with what mortgage and on and on. One thing is for sure however, Amanda and I are probably going to be landlords in the future. That's kind of terrifying, more for our future tenants that for us, but still...