All Forum Posts by: Andrew Garcia

@Elijah Vo, congratulations! Wishing you all the best!

Hi @Thomas O'Donnell, there are standard metrics that almost everyone uses (COC, IRR, cashflow, etc.), however, the definition of a base hit changes based on the strategy and market.

An investor-friendly real estate agent should be able to help you determine whether it is a good deal or not.

House-hacking is a great way to get into real estate investing. With only 3.5% down, you can start building equity and collecting rent.

Congratulations on taking the first step!

Hope this helps! Let me know if I can be of any assistance.

Hi @Luis Fernando Botero, as the others have said in the forum, you are probably looking for a DSCR loan.

Those are the easiest to use for investment properties. However, you are going to likely run into issues with that purchase price.

Conventional financing is likely a better option for this as it provides better rates and terms and has no minimum loan amount.

Additionally, if you are going to live in one unit, you can look into FHA loans.

Hope this helps! Let me know if I can be of any assistance.

Hi @Nadgèle Zéphir, typically, borrowers with no US credit are foreign nationals with no income or permanent residency in the US.

However, since you now have permanent residency in the US, you cannot go that route.

There might be a lender that I can refer you to that can help.

Let's connect to see if they can help you out.

Hi @Justin Schrey, welcome to the community!

Your goal is certainly attainable. All the success stories on this site are proof!

I would advise against using a HELOC to buy a property. The last time inflation was this high, mortgage rates were 15%+ so if you are not planning to pay off the HELOC in a couple of years, I would utilize a different strategy.

There are a few good options but neither myself nor anyone else will be able to properly advise you without knowing more about your current mortgage.

If you are accessing some of the equity in your primary residence, you can put more down on a nicer property.

The $100k property cashflows well now but if it becomes a crime scene or your tenants stop paying rent, you could lose all of that.

As long as you have a good property manager in place, you should not have too much trouble with vacancy.

You must also be aware that good property managers do not want to deal with headache properties so to get the best, you must have a property in at least a C-class neighborhood.

Additionally, the SFH in a nicer area will experience more rental appreciation as well as more price appreciation.

If you really want to speed up your timeline, you could buy 5-6 homes in the $150k range in a decent area with $30k down. They will likely be cashflow positive and you can offset the higher mortgage payment on your principal with the cashflow from those properties.

Within a few years, you will be cashflowing a couple thousand dollars a month and by year 8, you should be making $3-4k per month in cashflow and have hundreds of thousands of dollars in equity.

The good news is that you have options.

Hope this helps! Let me know if I can be of any assistance.

HI @Courtney Murphy, welcome to the community!

First, you can ask a local investor-friendly agent to help find rental comps. That would be your best bet.

You can also try looking at websites such as rentometer to find rental comps.

Hope this helps! Let me know if I can be of any assistance.

Hi @Eric Skeen, I would check with a local real estate attorney.

You might be able to work out something directly with the tenants as well to buy them out or find them similar housing elsewhere.

When it comes to legal issues like these, you definitely should check with a lawyer.

Hi @Tym Pearson, it is not necessary to sacrifice one of your properties in order to get started.

You are going to need to sacrifice some portfolio cash flow, however.

You can access the equity in three ways:

1. Cash-out refinance. You will get a fixed-rate fully amortizing loan with a rate slightly higher than a HELOC but lower than a second-lien.

2. HELOC. You will get a revolving line of credit with the lowest rate of the three. The rate is variable so if you keep it open for years, you could end up paying double-digit interest rates.

3. Second lien mortgage. You will get a fixed-rate fully amortizing loan with an interest rate about 2-3% higher than a cash-out.

Hope this helps! Let me know if I can be of any assistance.

Hi @Brian Cerezo, I would be happy to refer a lender that can help you with this scenario.

Let's get connected! Always happy to help.

@Crystal Wilson,

Having the right team is a must. I would connect with some local investors and see who they recommend.

On the multifamily side, you can connect with some commercial real estate brokers to get started.

Hope this helps!