Buying or Selling a Home/FHA Loans

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Expert: - 12/6/2011


Question
I purchased my first home in the San Fernando Valley back in April of this year using an FHA loan. A job relocation in the Spring or Summer of 2013 may require me to move to Northern California. My first question is at what point in an FHA loan is the owner allowed to either sell or rent out the property? I thought there might be some minimum amount of time the owner has to actually occupy the property as his principal residence before they can sell or rent it out to discourage investors from using FHA. The second question is whether you recommend getting a property management company to manage a rental property? Thank-you for your advice!

Answer
Hi Michael,

Congratulations on the purchase... since you bought the property with all intention of living at the property you should be fine by 2013 when your job relocates.  They just don't want fraud loans where buyers say they will live at the property but in reality rent the place out... at some point this year most likely an FHA inspector will cruse by and see if it looks owner occupied to Verify the deal... but not always..

On the rental side, it kind of depends on you... some people don't mind managing, others hate it, collecting rents, maintenance calls in the middle of the night etc... could be for the 10% it will cost to add that on to the cost of business and hire out... just know what going rents are for so the company you hire doesn't under cut the rents to show 'how fast they rent it out for you'


Good luck

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Connie Wildasinn-Broker,GRI,RealtorŪ

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Broker,GRI,RealtorŪ, Investor since 1979. Buying or Selling Residential and Income/Investment Properties, How to understand the process, how to negotiate through the transaction, What to Look for - But more importantly 'What to lookout for!', How to tell if the time is right - or hold on and wait. Why not to listen to your friends and even your family members, Who really has your best interest at heart?. Understand why any market is a good market and how to spot a good investment for you! If you are looking in California.. check out my website www.MetroCalBrokers.com and if you need assistance in a neighborhood I don't service, I will locate a local agent to that area who actually knows their profession and can assist you in your needs!

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4th generation Realtor in the real estate business, I have helped for over 2 decades clients buy and sell, I am the owner of a local brokerage in the Los Angeles /Long Beach area, and have been a top producing agent in the area since I became licensed. Working through a deal is different to every client, no two people or deals are exactly the same. Knowing how to bring professional advise to the table with clear and concise understanding of real estate world. I can help you handle your buying, selling and investing, managing a 1031 Exchange, working with Equity Sales, Probate, Pre-Foreclosure Regular and Short Sales there is little that I have not seen come across my desk over the decades!

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