All Forum Posts by: Aaron Kelly

I never heard about 5-10% down conventional loan before. There was one I found via other forums within BiggerPocket like a gem says that you could actually do 3% or 5% convention loan using a Freddie Mac's Home Possible Loan, you just have to be eligible below or equal to the 80% of the annual salary income zone in a map. Based on its eligibility tool map, Cleveland's 80% annual salary income zone is around $68k while my salary is $70k which made me unqualified from get one. 

Note, the Home Possible Loan allows lower downpayment with a conventional loan while you are under eligible and your loan is also flexible with PMI. It means your mortgage will not be lock with PMI for the entire life of the mortgage and can be remove when you reached or more than 20% equity, compare to most FHA.

(By the way, I used to search market at Austin when I met its salary zone of around $90k but realized I might be risk of unable to pay mortgage due to relative scale based on massive purchase price upfront)

Second, where would I find some such "gold mine" lender who offers 5-10% down conventional loan? I made contact to numerous lenders like 7 and none of them offers such flexible options like this. When it is come to search for a lender and compare it, I often used a LendingTree to help me find multiple companies with match criteria.

I found a fourplex located in Cleveland which is worth around 220k and want to purchase it. According to its description, it is actually a triplex + single house in a single lot, seem perfect ideal for a househacker. However, the seller only plan to sell it "as-is" condition and will not accepted any FHA loan to which my previous offer include it was rejected. So, what are avaliable finance I could use to make a great deal offer to that fourplex? I also add my budget detail below for your analsysi:

My real estate goal is to earn a decent cashflow locate in Cleveland through a househack and I have a max budget of around 40K. I want to apply a FHA loan because of its great low down payment 3.5% for a fourplex. Though there are few issues: FHA offer is not accepted by seller and second, even if FHA is accepted, I need at least 2 months worth of rents to meet FHA's guideline.

What are your recommended finance to use for fourplex?

Hi, I am a recently new real estate investor and is looking to buy my first property around Jacksonville, FL and I would like some helps clarifying what are the best efficient process to buy a property.

First, I originally believed a directional instruction to buy a property in the order is going this way:

1. Contact several real estate agents, screening them until you find a match who understands you and your goal clearly. They will help you in assist to search property.

2. Search a property which may match your interest. Anything can be singe or multi-family residence, location, neighbor grade area, and places with its great flow in either business or population. This involve either or both of your search by just yourself or assistance with agents.

3. Contact 2 to 3 lenders to get either pre-approval or pre-qualify letter. This is where I experienced the most struggle as many don't offer a standard way to process your application, such each has their own set of questions and applications form differently, and you have to sometimes contact through a call or email to get some changes which some experiences some issue with a human-interaction communication.

4. Once a property is found and have an offer ready (attached with a pre-approval/qualify letter), make an offer to the seller or the seller's agents and wait for their confirmation of yes or no.

As a being first time real estate investor, is this process above the best way to close a deal the most fastest and reliable way? I had been kept missing some of the great deals I found only within 1 to 2 days to be already mark pend or under on contract. Second, is it ideally to begin the process by contact lenders first before start to search property? It was because I noticed talking and making a processing with a lender seems to taking a lot of times more than I was initially expect. I even tried a bit newer modern lender like a RocketMortgage , however even it still required I have to contact them for even more extra documents to make works. 

By the way, I was wondering if there is such a better way to skip the lending process step or simplify it so I can retrieve a letter instantly in order to make deals officially mine before I get kick off in my face saying "ahah, you miss it! Good luck finding another one"? 

 Ooh, I see! I now understand it clearly, thank you for such simple example to compare. Yes, it is true that multiple items in a single package often comes cheaper than original total value and may also sometimes comes with not great quality.

Yes, I am planning to use FHA on any one of them. However, since FHA is not qualified for any property over 4 units, I have to use DSCR loan for that purchase, correct? That amount 500k for a downpayment is so far out of my reach.

About market, I think you are right. If that market is really hot deals, it should have been gone. Strangely, I read it on Zillow stated it had been on market for around 180 days which mean it is not great deals or something I assume.

I am a new investor looking for a place to househack along with FHA within a few months and just found this special deals. This deals said you can simply purchase for all 13 properties within Akrons and they all are used for University of Akron for $2.7m. This was actually my first time seeing this deal which is not common to the general real estate market.

So, what are your ideas about this deals? Second, for a newbie investor, what useful method will work for this to us?

https://www.zillow.com/homedet...

Ooh, dang. When I did calculated again for the PITI (Principle, Interest, Tax, and Insurance) together, it is result of about 5,400 which is more than rental income I estimated to come up at 5k. So, in other words, this will fail to qualify for the sufficient requirement. Alright, thank you so much!

Yeah, you all are right. Nearly all of the expenses are high enough that the income from rental are not able produce a decent cashflow. Based on my gathering so far, I was unable to find any good deals from properties within and around of Austin city, with duplex starting at $400k and go upward to over $800k and even worse, the inventory of triplex and fourplexes are so rare. In addition, I noticed most duplex properties priced easily high as much as 500k to 800k while the price of that fourplex I found is only price at 665k, kinda seem like a different measure or in scale something. But even though the price of 665k seem great deal for a huge fourplex property, it is true that most of items are not looks so luxury which will help boost the rental income. I might will also plan to improve that property overt time, as long as I can keep afford to continue for the first few years.

Ooh, yeah I think you are right. $2,6000 total rental income which results in about $650 for each unit don't seem correct measure to me. Thank you so much for point it clearly! So, I should not be limited myself from just Google or Zillow, but more outsde sources.

For now, the rental calculation I came up with is without any utilities. Good thing I got result from my real estate agent just now and it stated that electrical and gas are separate but water is together. And for landscaping, there is no other information. I assume it will be up to owner to be responsible for it? For insurance, I believed so. I will use Steadily to look up some property insurances for better rate.