All Forum Posts by: Andrew Garcia

Hi @Maureen Simmons, you have a few options here:

1. Find another W-2 job until you close on the house and use conventional or FHA financing.

2. Get a DSCR loan. There is no income or job verification. You are required to put down at least 20%, however.

Additionally, no lender will allow you to use credit cards to pay for the down payment.

There might be other options but I am not familiar with your borrower profile so I cannot advise on those.

Congratulations on jumping into RE full time!

Hi @Gurjot Grewal, I have not seen this done on foreclosures but I do not see any reason why this would not work.

Those homes likely will experience more cash flow but less appreciation. If that is your goal is cash flow, this could be a good strategy.

If you care more about wealth, you could buy a $200-300k house at auction and do a cash-out refinance for $100-150k. Your cash flow would not be as good but you will be in better properties in better areas.

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

Hi @Nicholas Williams, either way, it would be the same percentage of money down.

The amount would depend on the purchase price, not the property type.

A 1/1 condo should have a lower purchase price than a duplex or triplex.

You should be aware that if you are using an FHA loan, you will need to occupy the condo as your primary residence for at least one year.

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

Hi @Nicholas Williams, first thing's first, neither FHA nor USDA will allow you to close in an LLC.

FHA and USDA each have pros and cons. However, USDA loans are only for rural areas.

Since you are looking in Philadelphia, that area would not be eligible for USDA.

Therefore, an FHA loan or a 3% down conventional loan would be your best bet.

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

Hi @Andrew Schweim, you can BRRRR in pretty much any market.

You should always have a great team to support you but if you are doing it remotely, you need to ensure that your team is A+.

Obviously, you should ensure that the market is strong for long-term growth. However, no matter how strong the market, if you have a bad team, there is a high chance of failure.

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

Hi @Kayla Caruso, 

Interest rates are expected to continue rising so you might be waiting a while if you choose that route. A 5% rate is still historically low.

There are a lot of different formulas and terms. It can certainly be confusing! Feel free to ask if you need any help.

Knowing the average rent is an important factor in analyzing a deal. It does not need to cover the monthly expenses while you are living in it but since your plan is to rent it out after a year, it would be necessary.

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

Hi @Kolton Gutierrez, it really comes down to the terms of the seller financing.

Is it a fixed-rate fully amortizing 30-year loan?

What is the interest rate?

Is there a balloon payment?

There are other questions but no one will be able to give you a well-informed answer without more information.

Hi @Lee Williams, if the sellers are not particularly motivated to sell now, you could look into a fix and list program.

Even just doing the bare minimum should get you some more traffic.

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

Hi @Brodie J Meaux, there are a few things I see.

1. A cash-out refinance will have better rates than a home equity loan so that will be a better option for you. Home equity loans are typically second liens.

2. I am not sure where you are but $50k seems low for 2/2 SFHs.

3. Each home you close on will have a few thousand dollars in closing costs so you will likely only be able to close 5-6.

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

Hi @Victoria Velazquez, I would be happy to refer a lender that can help you with the purchase & rehab front-end loan as well as the back-end refinance.

Let's connect!