All Forum Posts by: Alex Nigh

Hey Ryan

I think it really depends on the person and their comfort level, I personally only had around 4k left after a 500k purchase, but others might want a larger buffer.  I would also say it depends on what they plan on doing with the property after closing. I decided to house hack, which meant I only needed to take on the full mortgage payment for one month as after that I was cash flowing. 

I think the fear comes down to how do they look at the property, do they see a mountain of debt or an asset that pays them. I think it comes down to mindset and ones upbringing on how they perceive money. Once they get one property and see the money going into their account and not out I think something switches in their mind and it becomes easier to make sense of the debt. 

Also I would look at the Homeready loan and Bank of America's down payment assistance program for first time buyers as well. 

Best of luck to you and your friend!

Hey Eddie,

If you are looking for help I live in the Aurora area as well, I focus on first time buyers/investors. I'd love to see if I can help or at least point you in the right direction.

Would it cashflow as a rental? A regret of many investors is selling properties instead of just holding. Would you need to sell the house in order to purchase the next one? 

Would the renovation bring any additional cash flow? I would lean towards a second house purchase, especially in LA. Yes rates will likely continue to go up, and possibly flatten out the market, but like Greg said above we are severely lacking in supply. Over the long term appreciation and equity grow wealth, so add another to your portfolio,  personally I am currently still buying in the Denver area. 

@Noah Stout I decided not to be on the loan because you can only get one owner occupied loan each year. This allowed me to go off and get another house a few months later once I had more capital and income, otherwise I would have to wait the year and the DTI would have counted against her as well not allowing her to get a loan either. We are going down the same route as you and your brother where we are trying to accumulate as many houses as possible.

Hey Nate

Depending on the area you could use the Bank of America grant program which is up to 10k down payment assistance and 7.5k closing cost assistance, there is also a homeready loan which is 3% down instead of 3.5% or home possible which is very similar.

https://www.bankofamerica.com/...

https://singlefamily.fanniemae...

https://singlefamily.fanniemae...

https://sf.freddiemac.com/work...

Best,

Alex

Hey Noah I went through a similar dilemma last year with my sister. I was not able to qualify for the loan on my own and debated having her cosign with me. We decided to have just her name on the loan but put both of ours on the title, this allowed me to go off and potentially get another house without waiting the year (technically 10 months with 60 day move in period) for owner occupied loans. I can not speak as to how to get him off the loan, but if he can qualify on his own I would just throw your name on title. That being said he would have to occupy the house hack as well if he was the only one on the loan, some lenders require the cosigner to be in the same state if you went that route. 

I would also look into homeready loans or the bank of america grant program, they might be better than the FHA route.

https://singlefamily.fanniemae...

https://www.bankofamerica.com/...

Not sure if that helps at all, happy house hacking!