Scottsdale, AZ · Member since 2020 · 11 posts · 3 votes
I bought my first House Hack in February in Scottsdale, AZ. A 3 Bed 2 Bath that I converted into a 4 Bed 2 Bath. It’s going really well I’m bringing in $2450 a month and my mortgage is $1885.
I’m looking to expand my business and not sure if I want to live in my next property because I love my home right now so much.
If I were to buy another home/property do I have to put 20% down or is there other ways to put less money down if I don’t live in it. If so do you mind explaining what else I can do.
Lender · Scottsdale, AZ · Member since 2017 · 39 posts · 39 votes
5y
If you are not planning on moving in to the new property, the lender will consider it an investment property, so you will need the 20% down. In order to buy an investment propery with less than 20% down you would have to find a property with equity or value add. You would buy the home with 10% using hard money, improve it and refinance the existing lien using the new appraised value( will the lender allows using the new value on a R/T refi without a waiting period). They key here is to find the right property. Hope this helps.
Lender · Scottsdale, AZ · Member since 2017 · 39 posts · 39 votes
5y
If you are not planning on moving in to the new property, the lender will consider it an investment property, so you will need the 20% down. In order to buy an investment propery with less than 20% down you would have to find a property with equity or value add. You would buy the home with 10% using hard money, improve it and refinance the existing lien using the new appraised value( will the lender allows using the new value on a R/T refi without a waiting period). They key here is to find the right property. Hope this helps.
Real Estate Agent · Scottsdale, AZ · Member since 2018 · 412 posts · 366 votes
5y
@Griffin Brenseke congratulations on your success! Sounds like you are on your way to building a strong portfolio! I have helped several BP members buy properties in Metro Phoenix and @Art Shalomov, as a lender and an investor himself, has been a great resource for them. Can't recommend him enough! And if you do what he's suggesting and need a great hard money lender, I have a recommendation for you.
Real Estate Agent · Scottsdale, AZ · Member since 2017 · 159 posts · 59 votes
5y
Hi Griffin,
You can buy another property with 5% down if you are going to live in it. I have also been able to get investment properties with as little as 15% down with my lender Cathy Byrd @ Price Mortage. Let me know if you need any help :)