All Forum Posts by: Aaron Henricksen

@Chris Quinn, how is the vacation rental market at the moment? Is it coming back at all? Is it still better than long term rentals? I'm considering getting into the BCS market with vacation rentals. I understand that CS recently implemented STR restrictions, so I would either be focused on Bryan, or possibly CS condos (which I understand don't fall under the same restrictions). Do you have any thoughts on the timing? Also, due to COVID, I understand the condo/townhome market is kind of soft, while everything else is pretty hot. I wonder if that would actually mean that now would be a good time to purchase in the condo/townhome market, because as we get back to normal in the next year or two, that the condo prices might rebound as well. I also wonder whether houses rent better than condos for the STR market. As someone whose lived in the area for a long time, and as an investor and realtor, do you have any thoughts? Thanks, so much!

I'm considering getting a second home to have as a vacation rental. The market I'm looking in is about 90 miles away from my primary residence. I'm curious if anyone knows what's the highest DTI I could qualify for with 10% down? I have heard that 43% DTI is pretty standard, but I've read that DTI can go up to 45%, or even 50%, but I'm not sure if that is lender specific, or if you can only get a higher DTI with a bigger down payment. Also, I recognize that if I only put down 10%, I will be paying PMI. Does anyone know a good placeholder to plug in for PMI? I'm kind of working with 0.55% of the sales price for an annual cost of PMI, but I've heard that PMI has gone down. My credit score is in the 760s if that helps with any of this. Thanks!

Thanks. My preference is a long term loan. My thought is that if the price to appraised value is what I expect, I can just refinance a few months down the road and get some cash back out. I just thought it was worth posing the question in case their was a lender or loan I wasn’t aware of with different standards.

Thanks again!

I am looking at a property that looks good and the math works, but it's a little more expensive than the last few properties I've looked at, and  although I have enough available for a 20% down payment, I'm hesitant to tie up most of my liquid cash into one deal, especially if the market might be getting soft soon and there might be good opportunities on the horizon. Another relevant piece of information is that the purchase price that I would be offering would be 80-85% of what I believe it will appraise for.

I know conventional loans, or anything that will have government backing or be sold on the secondary market, will almost certainly require a 20% down payment for an investment property. I also know that there are hard money lenders that have their own criteria and may require less down, but does anyone know of any options or lenders, that will give a decent interest rate with a down payment based on 20% equity instead of 20% of the purchase price? For example, in the case of this house, if the purchase price is 85% of the appraised value, does anyone know of a specific lender (that doesn't charge hard money rates) that would allow me to put in 5% of the appraised value to get to the 80% equity requirement, instead of requiring 20% down?

If not, the other option would be to purchase it and refinance it based on the higher appraised value after it's seasoned, but I wanted to save the time, effort, and closing costs of the refinance if possible.

I’m finding it hard to come across lenders who will lend a 30 year conventional mortgage (20% down) for houses under $100,000.

I found a local lender who will go for a 20 year, but does anybody have any suggestions for a 30 year? And does anyone know what a going rate on a conventional investment mortgage might be? It would be for a buy and hold rental.

Thanks!