All Forum Posts by: Aileen Yu

@waynebrooks thank you! I guess I won't be using that lender.

Hi All,

I was under the assumptions most banks allow 6 conventional loans. I talked to a lender the other day that said they're "cracking down" on that and that if my property goes from being a primary to a rented space (investment) i'd need to refi to a invesment loan.

I would think the bank is responsible for controlling the type of loan since they do their due dillegence of checking my DTI and the first existing loan should show up.

Has anyone else heard about this?

Can I get in tax or other gov trouble for having multiple conventional loans? How do i get over the anxiety of being a new investor and balancing following the "rules" vs. guidelines?

Congratulations! 

I am definitely feeling everything you said. Everytime I think I found  the right strategy,  I see a different one and got very distracted. Your three points to consider before taking action is gold! Nice work and thanks for taking the time to share!

I did try calling the local housing authority and lead me down a rabbit hole of alternative numbers but I shall attempt again! This is how you train for grit lol

Hello!

I am seeing SFH listing with what seems to be unpermitted detached units (1bd + 1 ba). Are you legally allowed to rent unpermitted living spaces? The listing description seems to be advertising that you can but to my understanding that's a lawsuit waiting to happen.

Alternatively, how difficult is it to get approval for permitting a detached property? I know there will be requirements that need to be met but it also seems like there isn't a guarantee for a permit and don't want to buy the property if it won't generate cashflow I'm targeting. Are there any government resources that will help me understand my chances? I am in Everett, WA

Hello!

I am so confused! I originally thought I could rent out a property any way I want (minus retail in residential). I'm a little baffled at what I am slowing finding out. My original plan was to buy a duplex, but I live in a very competitive area so I'm now looking into SFH with MIL or ADU.

I looked at SFH with permitted ADU as it accomplishes my same goal of reducing my expenses and getting land lording experience with the plan that I could rent out the main house and the ADU after living in it for a while. Then I found out that in Everett, WA, I can't rent the main house + ADU if I'm not living on the property. This seems odd to me as how is this different than me just renting out by room? Is there a work around for this so I could rent both out at the same time after the primary residence period? Also why does this ADU rule exist and how is it different than a rent by room situation?

Keep In mind the regulations for your area. Not sure if you were intending to add value in terms of cashflow or property but Im in Washington and looking at ADU properties in Everett and you found out that I have to live on the property to rent either the main hour or ADU. I wouldn't be able to rent out the ADU and the main house at the same time.

Thank you both! I'm thinking I want to focus on being an investor first and joining a brokerage that has a lot of edu provided and hopefully focusing more on being an agent in a year or two when I have some experience and knowledge. I was an agent once looooong time ago, and I was just too shy and wrong mindset to be successful, but I can see myself loving helping people with a more focused expertise in property investments or commercial so I'll try to build that foundation now. 

Referring to your comment on "cashing out a few months later", my lender has said cash out refinances are definitely available but they only cash out at 75% LTV right now due to the uncertainty due to COVID (usually 80%, have seen some at 90%) so keep that in mind, that you will only have something to cash out if you have 25%+ equity in the home either through appreciation or downpayment.

I'd recommend calling a few lenders and just telling them your plan and you can hear specifically for you situation if you're a candidate for a loan try big places like loandepot and smaller credit unions as well. Also if choose to get preapproved, you have a month (I think? It's been a while) to go to as many places as you want without dinging your credit score multiple times, they'll know if it happens within a certain amount of time you're shopping for rates rather than actually looking to get that many loans.

I'd recommend really figuring out what your needs/goals are and figuring out which method words best. The BRRRR, Fix & Flip, House Hack, Rental, Commercial all work for building wealth but for different needs and preferences. For example, I live in an expensive area and want to make my savings take me as far as it can so my primary goal is to reduce my expenses by house hacking then going into BRRRR or flipping. Maybe if you're trying to make money first and you have a place to stay, like your parents, maybe flipping would be a good option to build that capital first.

BTW soooo freaking awesome you're starting so young. Good luck, and looking forward to seeing what you end up choosing.

For Washington state it specifically calls out its only relevant to people "impacted by lay offs and reduced work". Is there nothing in California's moratorium? Also have you explained that the rent is not forgiven, it's just deferred thus you'll legally be allowed to collect at some point. Obviously not optimal but perhaps they'll understand its not in their best interest to not pay when they are able.