All Forum Posts by: Aayush S.

Does the job have to be a contract or can it be a regular salaried job?

Hi BP,
I've been getting into house hacking recently and am about to graduate from college. I'm wondering whether I can qualify for an FHA using my 2 years of college rather than the required 2 years of employment. I can afford the down payment, however, the 2 years of employment is the biggest roadblock. Are my 2 years of college eligible to replace the 2 years of employment? (Also I have a job offer already in place)

Hi BP,

Recently I've been getting into house hacking and I've been wondering whether my current plan to take out equity would be possible. My plan is to buy a house hack and owner-occupied for 1 year, either with a 3.5% FHA or 5% conventional. I was wondering if I were to wait say... 15 years or so and I had maybe 40% equity (assuming no appreciation), would I be able to cash out refinance down to 25% equity and still maintain the same cashflow I had with my 5% conventional or 3.5% FHA. The reason I ask this is that typically investor loans have higher interest rates so wouldn't that make my annual payment higher, or would the annual payment be pretty much the same due to their being less leverage implemented?

For example:

If I had a 100k property and put down 3.5% on an FHA and had cashflow x
In 15 years I had around 40k in equity and I still have cashflow at x
Could I cash-out refi down to 25% and take the 15k equity, while still maintaining or increasing cash flow x?

Hello All,

I've been looking into house hacking in a fairly expensive market. I was wondering what the expected cash on cash returns would be if I were to get a 3.5% or 5% down after I moved out. If you have any questions please feel free to ask. I'm expecting a low cash flow while I occupy it, however, would something like a 25% COC return be attainable in a house hack once I move out due to the high leverage and low down payment?

What would you say the average would be for say maybe a 500k loan? I'm trying to estimate the percent since it's something I will have to think about sooner or later? What would be the safest percentage to take? Currently, I'm using 6% closing costs, but I'm beginning to feel like that's quite high. Thoughts? 

Thank you all for the replies!
I do however have a follow-up question regarding refinancing since that is something I would need to do every 5-10 years with commercial loans. What are the typical closing costs of a refinance and what percent of the loan is that usually? 3%? 4%? 5%? Planning to try and refi every 5-10 years once I buy the property but not sure if I would really be benefitting from it.

Hello BP,

I recently found an 8-plex property on the market and I'm wondering what the terms are for a commercial loan in order to get that property. So far I've been seeing 5-year terms, 20-year amortization, and below 6% interest rate. Could someone provide some insight on the current rates they are seeing and whether or not the terms given to me are common? Please feel free to PM me or post below.

Hi All,

Been doing some research on BRRRs and I am wondering what the ROE is of the property after you take out all your cash. For reference, if you took out all your invested cash in a 360k property, assuming a 75% LTV, you would have 90k "equity" in the property that is created. What would be the cash flow on this type of property and what is the typical ROE on this leftover equity? 10%? 8%? 5%? Please reach out with any questions, PM or Post below is fine.

@Joe Villeneuve could you give a few examples of how I could get my cash out other than a refinance?

Hi All,
I've been looking at retirement options and I was wondering what COC ROI is in the Midwest area. I know typically many people shoot for 10% COC ROI, however in the Midwest can I get a surplus of 12%+? Lastly, I would like to mention that BRRRs will not work since I need a stable 10% ROE, meaning even if I pulled out all my cash, I need at least 12% on the equity that is in the property.