Buy as Owner Occupied or Investment?

[gideon]

I am in a weird deal right now. Paperwork was submitted on a property which needs a lot of work.

The initial buyers agreement was for owner occupied which triggered a 60 day period to move in - which is impossible due to the condition of the house.

There is an option to re-submit the paperwork as an investment purchase even tho I intend to live there as my primary.

What is the difference in doing this? Is it 'ethical'? Can there be a bad downfall to doing this?

I would ask the realtor representing me but we've just parted ways, throwing a good sized wrench into this.

[thegreattwizz]

Get a new realtor.

Then buy as owner occupied and make every effort to move in within 60 days.

[gideon]

got the new REA, this house will not be habitable in 60 but we're working on it.

[billy ross]

You shouldn't need to physically sleep there. As long as you declare it as your primary residence, register to vote there, change your driver's license, library card, etc, you'll be acting in good faith. If you're really worried about it, set up a cot and a change of clothes and sleep there once a week until it's closer to being ready. I slept on cushions the night I bought my first home.

[gideon]

we re-did the purchase agreement as an investor buyer. I think I want that flexibility but, more importantly, the rider said I had to be physically living there or I'd be responsible for liquidated damages totaling $10K. This house will take months to get rehabbed.

[billy ross]

Make sure there arena prepayment penalties in case you want to refi or sell.

[gideon]

it's a cash deal - I don't want a mortgage (don't believe in debt like that). I have to own the property for 3 months and 12 months from then I can only sell the house at a small markup. After that I can do what I want.

Amazing, this realtor I was working with really screwed me over. If anybody wants to know who not to choose as an agent, I'd be happy to tell you. PM me. On Friday evening, another agent recommended by a friend, sat down with me and we re-did all the paperwork and got this back on track. I'd be happy to give his name too.

[thesomersteam]

Congrats on getting back on track. The big picture is that a distressed property will be updated which is great for the block and for the community. A "win" for you and a "win win" all around. My side gig (after selling properties for clients) is renovating properties of my own. It is quite rewarding. Not easy, a lot of risk, but well worth the reward to be a part of something bigger.

[gideon]

indeed. I have a friend who has rehabbed a bunch of properties who I'm hiring to take care of the priorities. I'll be a pair of hands watching everything they do. I build furniture and have tools so I should be able to pick up a lot for what ever happens down the road. Risk? I think it's riskier not to do it.