All Forum Posts by: Andrew Garcia

Hi @Marcus Joseph, the issue would be if it is going to be a cash-out refinance.

Cash-out refinances have limited LTVs for FHA and conventional loans so you would still have equity tied up in the property.

If you are paying off another lien, you could be able to structure it as a rate/term refinance with higher LTV requirements.

For example, you could get an FHA 203k or a HomeStyle renovation loan with a low down payment. Then, refinance into a standard conventional or FHA loan 6 months later if that makes sense. However, even if rates continue to rise, you are not forced to refinance.

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

Hi @Heath Shepard, you can still get a loan this year. It just would not be a conventional loan.

You could get an alt doc or no personal income loan in the non-QM marketplace. Not every state allows stated income loans so it depends on where the property is.

It also depends on occupancy, credit score, reserves, and a variety of other factors.

The interest rate is higher but paying an extra $1,000 a year in interest is better than paying an extra $10,000 in taxes.

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

Hi @Nick Littleton, if lowering your DTI is the goal so you can get more loans and scale, converting your primary into an STR will not get you there. At least not immediately.

For the conversion from a primary to an investment property, the property must have a lease for that income to be included in your DTI.

If you want to use the STR income, you will need to have that income show up on your tax returns.

As for whether you should do the DADU or buy another property, that question would be better answered by local investors/investor friendly agents that are familiar with the area.

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

Hi @Chi Sastry, a local real estate agent would likely be best to answer this question.

If you have one, I would ask them.

Otherwise, you can use the BP "Find an Agent" tool to get connected with an investor-friendly agent in your area.

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

Hi @Jon Spisak, I have no doubt that you will find some great people in this forum.

If you ever need a referral to a FL lender, I would be more than happy to provide one.

Unfortunately, I do not know any rehabbers in Naples/Bonita Springs.

However, you can go to the "Network" tab at the top of the screen to search for some local experts. 

Hope this helps!

Hi @Kit Elliott, a lot of the investors that I know in CA are doing STRs.

Obviously, the regulations are different in different jurisdictions so the Bay Area might not take too kindly to STRs.

Others are eating cashflow losses for the appreciation play. However, that is much more neighborhood-specific.

There are always the flippers/BRRRRers that seem to make money in any market as well.

I know that my answer was very vague but without being a CA investor myself, I did not feel qualified to speak too much on it.

Hope this helps!

Hi @Dylan Brown, one of the main appeals of house hacking is that you need a low down payment while getting primary home rates. However, if you are buying it through an LLC, you will get a higher rate and need to put more down.

It might be better to buy it as a primary and use the other funds to invest elsewhere, thus maximizing your ROE.

However, there are a lot of pros to buying in an LLC so if it is for tax purposes, it might be worth it.

I am not a CPA so I cannot offer much advice on that portion of it. Maybe try posting this question in the Tax & Legal Issues forum.

Hope this helps!

@Chris Choe thank you for the mention.

@Humberto Sepulveda III, there are a few options depending on their scenario. Anyone would need more information prior to qualifying you for a program.

With that being said, those terms do seem a little off-base from where they should be.

If you feel comfortable sharing some more information, feel free to shoot me a message.

Hi @Luis De Jesus, the issue with that is that rates are determined by a variety of factors, not just the down payment.

In fact, pricing is determined by 11 factors. 9 of them are determined by you and your scenario (credit score, property type, LTV, occupancy type, etc.)

The other two factors are lender/broker profit margin and market conditions.

Since I only have a few of the factors, I cannot tell you what an accurate rate for you would be.

However, making some assumptions, you would be looking at a rate of 6-6.25% with no fees or points.

Take that with a heavy grain of salt as your scenario will likely be different.

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

Hi @Eddie Pietschmann, I can refer you to a great DSCR lender.

Feel free to reach out to get connected.