All Forum Posts by: Alex Waite

I am debating if I should sell my house hack. I have been in this C neighborhood house since 2020 and the house has appreciated. I house hacked for the first two years and now my girlfriend moved in for the last year. I bought the house hack with the intention of renting it out back in 2020 but with the house value going from 200k to 300k in 3 years. I am wondering if I sell and take the gains. I do not need the equity from the current house to buy the new house. The rent should be 1800-2000 per month and the mortgage is a low 2.8% with PITI of 1125. So after all expenses will profit a couple hundred.

I currently live in my primary house with a mortgage and have a car payment and student loans. Every loan officer I have talked to so far is saying I don't qualify for an investment property because of my DTI. Obviously I can pay off the car and student loans to make my DTI better. One loan officer I talked to said they can use 75% of the current rent. So that means I need to inherit a tenant.

Is my only option to payoff my debt?

Hello all,

I am in a situation where I can sell my house hack which has been relatively successful for the past 1.5 years. I can make between 30-40k after selling costs and paying off remaining mortgage. For perspective I put in about 20k between DP and to get house hack ready to rent.

OR i can rent out the whole SFH and make about 300 per month after PITI, vacancy, capex.

OR I can continue living in house hack and use a HELOC to further investments.

I am leaning towards taking the quick cash by the appreciation. Am I missing anything? What is everyone thinking?

Thanks!

I'm curious would you be able to use a heloc with a buy and hold strategy? BRRR is a perfect for a heloc but I am focused on the buy and hold strategy. I've seen other posts about using a heloc for buy and hold.

My question is why would someone use a heloc for buy and hold rather than getting a mortgage on the investment property?

@Dave Spooner

Thank you for your response Dave. I think I am going to finance them. I was just concerned about putting my balance higher than what I bought the house for! (The appraisal is higher than purchase price)

@Caroline Gerardo

Forgot to answer your question!! They are offering 2.875%

@Caroline Gerardo

Hi Caroline-

Thank you for your response. They were saying my closing costs were 6k to save $150 a month. Going from FHA to conventional is what I want to do eventually to get rid of the MIP like you said. I was debating of paying some things out of pocket. Not sure why they need to do taxes and then my years worth of homeowners insurance. Seems like nonsense to me.

Paying some closing costs sounds like a smart move to me. Thank you!

What does the BP community think of paying closing costs up front or should you finance the costs?

I am currently looking at refinancing my FHA to conventional after one year but financing my refi closing costs will put my balance higher than what I bought the property for!! Am I insane to do this?

Hello all,

I have been in a single family house hack for about 9 months and it has been very successful. My plan is to live in the property for 2 years minimum for tax purposes just in case I sell within the next 5 years. I could rent the whole house between 1,500 to 1,600.

Background: I currently have a FHA loan at 3.625% and my PITI is about $1,250. My balance currently is about $200,000. I talked with a mortgage officer and she said she could give me a below 3% rate and lower my payment by about $200. She also said I would get an escrow refund for a couple grand. I was not aware of this but must be a positive?

However, my question is the closing costs are 5-6k and my balance would go up to $205,000. Should I pay the closing costs out of pocket or finance the closing costs?

Thanks in advance!

@Mike Solak

VA loan is very attractive because of no PMI. I want to refinance for two reasons:

1) get rid of pmi

2) to use FHA loan again

However, depending on rates and refinance costs it may be better to just hold the FHA loan and use a conventional loan for my second property. My goal is to have 3-5 good cash flowing properties.

I have looked into Cozy and it seems like a good website but for now I am accepting Venmo for payments. It is convenient for now but having multiple tenants could make it hard to keep track.