All Forum Posts by: Andrew Garcia

Hi @Rami Halperin, if you are moving into the property, you could do an FHA loan with 3.5% down.

That would be your best option if you are living in one of the units.

If you are not, you could look into either a conventional loan or a DSCR loan.

Conventional loans have more restrictions but better rates and DSCR loans are the opposite.

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

Hi @Patrick Farley, renting out the home will not cause the note to be due. As long as you are paying the mortgage, they will not check or care.

I have never heard of a servicer calling a loan due because you moved out of a home. 

As long as you have lived in the home for at least a year after closing, you should not have any issues.

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

Hi @Joseph Viola, I do not personally know any in the L-ville but there are a ton of great ones on here.

Go to the "Find An Agent" tab at the top of the screen and you will be connected with an investor-friendly agent locally.

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

Hi @Anthony Barraza, if you are going DSCR, you only need 20% down.

If you are looking at 2-4 units, an FHA is the best way to go. Live in one unit and rent out the others.

The downside with FHA is that you can only have one loan out at a time so you will need to refinance to free up the FHA loan.

You could buy a single-family property with 5% down every year up to 10 financed properties. That would give you good churn if you are looking into SFHs.

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

Hi @Brandon Rauscher, a lot of 2-4 units are going to people that are house hacking.

Ultimately,  if they need to pay $500 a month, they do not really care since that is still way less than a typical mortgage payment.

If you are looking for a 5+ unit, the lower the cap rate, the higher the forced appreciation.

It is simply a different strategy. 

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

Hi @Bishwash Aryal, you can do 2 things in this scenario:

1. Build a 2-4 unit property in your area.

2. Find an outside market to invest in.

I would get a quote from a builder on the first and connect with some agents on here to see what an out-of-state investment would look like.

Then, you can do a side-by-side comparison.

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

Hi @Cherie Tormey, since you are buying cash, pretty much any property will cashflow.

Additionally, those are cash flowing markets. 

Make sure you have a local investor-friendly real estate agent that can help you find the right one.

At the top of the screen, there is a "Find An Agent" button that you can click to get connected with one.

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

Hi @Gabriel Lamb, you are very detailed in your analysis! Below are my critiques:

1. Typically, you can roll the refinance costs into the loan but you will get less cash back.

2. $325k on a $400k listing seems low in this market. If you can get it, definitely do! It might be optimistic if you have not put an offer in yet.

3. You are forgetting carrying costs during the rehab. Utilities, interest and finance charges, taxes and insurance, etc.

4. The insuranc, vacancy, and capex/maintenance could be low. I am generally pretty conservative though.

Other than that, it looks good. 

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

Hi @Olga Kostrova, this is really a question for your lender.

I know for a fact that the lender will not only collateralize $30k. 

This sounds like a private or hard money lender so the terms should be negotiable.

Whether refinancing your current property is the right move or not is really a question of comparisons in rate. If you put down 10-20%, would you get better rates?

You can also look into a HELOC if you are going to pay this HELOC off fairly quickly.

The main risk with cross-collateralization is that if you default, you lose both properties. There is really no way to avoid this unless you don't cross-collateralize.

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

Hi @Ezra Henderson, I know a lender that can do a DSCR program for house hacks.

Let's connect so I can share the info.