All Forum Posts by: Andrew Garcia

Hi @Jon Fletcher, there are two renovation products by Freddie Mac / Fannie Mae / FHA.

The issue with the FHA 203k is that you cannot use it on investment properties.

The issue with the Fannie Mae HomeStyle is that it can only be used on 1-unit investment properties.

In short, you will, unfortunately, need to turn to non-QM, private lending, or hard money lending.

Let me know if I can be of any assistance.

Hi @Shawn P McNicol, welcome to the community!

Congratulations on becoming a real estate agent!

Being the house hacking agent for your area is a great way to differentiate yourself and gain clients.

I would love to connect with you!

Hi @Mac Nielsen, in general, two years of employment history is required.

However, there are exceptions. A lender would need more information before being able to tell you yes or no.

Additionally, most private lenders will not lend up to 96.5% or 100% of the value of the home. They have higher down payment requirements.

Please let me know if I can be of any assistance.

Hi @Joe Nguyen, 

Typically when there is a recession, rates go down so mortgage products become more attractive.

If you are going to utilize an ARM, I would get a hybrid ARM.

That way, you are getting a fixed rate for the first 5 or 7 years, then you are refinancing within that period to get into a 30-year fixed.

This way, you get better rates than a 30-year fixed while still having a fixed rate for the first 5-7.

The bet you are making is not that rates will be lower in 5 to 7 years. The bet that you are making is that rates will be lower than they are now within the next 5 to 7 years.

If rates hit 3% again next year, you can refi into a 30-year fixed.

Worst case scenario, these are the lowest rates for the next 7 years. In that case, would you still be buying property at higher rates?

If the answer is yes, then you can do a cash-out refinance to free up capital to further invest or do a rate and term refinance into another 5/1 or 7/1 ARM at a higher rate.

If the answer is no, you can sell and put that capital towards whatever your investments are at that time.

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

Hi @Brandon Cain, first, interest rates and housing inventory are independent variables. The amount of housing does not affect the interest rate environment.

If we were to have a recession, rates would likely go down. Otherwise, the Fed is likely to continue hiking rates to combat inflation.

You can do a rate and term refinance once rates go down. However, depending on the product, you might have a pre-payment penalty.

In that case, you would have to pay 1-5% of the loan amount as a fee for paying the loan off early.

Be sure to take this into consideration when doing the cash-out refi.

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

Hi @D.J. Parten, if you have the capital to renovate the neighborhood, it could be worthwhile.

However, if you were to simply renovate this property, the rewards would be miniscule.

Hope this helps! I'm rooting for you!

Hi @Navraj Gill, 

It really depends on your definition of class B. If your definition of Class B is the same as mine, it will be tough to find something in that price range.

As Scott said, the definitions are subjective. I would check out the guide that he linked.

Also, reach out to some local agents. They will be able to help you determine where you can get the most bang for your buck.

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

Hi @Dylan Nice, welcome to real estate investing!

There are so many great people in the Phoenix area. If you go to the network tab at the top of the screen, you will be able to search for people in your area.

Let me know if I can be of any assistance.

Hi @Kate Porter, welcome to the community!

There are so many great people in this community so I am sure you will be able to connect with some other investors in your market.

I definitely think your background in marketing and photography would be valuable in your real estate investing journey.

You are closer than you think to getting your next property!

Let me know if I can be of any assistance.

Hi @Eduardo Beltran, I would recommend doing a 75/15/10 or an 80/10/10. That is what most of my clients do to get around the 20% down.

However, since you only have $10k, that is not viable for this property.

Partnering would likely be your best bet on this property.

Alternatively, you could move into one side of the duplex and live in it for one year using FHA 3.5% down financing.

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