All Forum Posts by: Andrew Garcia

Hi @Antonio Villao, welcome to the community! 

Congratulations on getting your real estate license! My 3 biggest things to look for in an agent:

1. Investor-friendly

2. Knowledgeable

3. Communicative

Try to find an agent that has helped others with house hacking.

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

Hi @Martin Martinez, I would house hack if I were you so your monthly payment stays at or below $400. 

You can get an FHA loan with 3.5% down. You can get lender credits and/or seller credits to cover the closing costs.

Then, you can continue to save up and build equity to then invest in other properties.

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

Hi @Jason Crowe, for insurance, what type of insurance do you mean? Hazard insurance? Mortgage insurance?

As for the rental restrictions, the property must be rented less than or equal to 180 days and the client resides in the home the greater of either 14 days or 10% of the days property is rented.

Examples:

• The client rents the home for 100 days. 10% is 10 days, which is less than 14 days. The client must occupy for at least 14 days in order to be considered a second home.
• The client rents the home for 150 days. 10% is 15 days, which is greater than 14 days. The client must occupy for at least 15 days in order to be considered a second home.

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

 @Brian Coffey, .75*3,500,000 = 2,625,000. You said that you have $1,500,000 in equity meaning that you have $2m in loans to pay off.

2,625,000 - 2,000,000 = 625k.

Hi @Demarco Brown, for the initial loan, it is certainly an option. For a long-term loan, you should refinance into a DSCR or a conventional loan for a lower rate and get your capital back.

You can also look at non-QM fix and flip loans by licensed companies and loan officers.

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

Hi @Milanda Kornacki, I would talk to your real estate agent. They will likely be able to provide a better answer.

It could be that the house has been listed for over 2 months and in this market, that is a long time. People start to think "why has it been sitting? What's wrong with it?"

I always hate seeing these stories because when a lender does not know what they are doing or tries to operate in a market in which they are not familiar, they mess with people's lives. Maricopa County's loan limit is $647,200 so that would make it a jumbo mortgage.

Jumbo mortgages are an entirely different animal than conventional. If they are over the conforming loan limit, a good loan officer would still have options such as a HELOC closing simultaneously so that they are below the loan limit and thus can utilize conventional financing.

Sorry for the rant, I got a little off-topic.

In short, talk to your agent. I do not know the comps or the neighborhood.

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

Hi @Ron Singh, I would contact a commercial mortgage broker. They have access to a variety of products (agency, CMBS, banks, CUs, etc.)

It is not my lane so I won't speak on it too much.

I know a great one in CA. Feel free to shoot me a message and I will give you his contact info.

Hi @Paul Dario Jr, it would depend on further information. The biggest one is your credit score.

If you would rather share it in private, feel free to message me and I will let you know if it is a good deal.

@April L., correct. Flipping would mean selling the property. In the example, you are refinancing for 75% of the value.

.75 * 230k = $172k

$172k - $137k (loan amount) - carrying costs ($11k) = $24k which was your down payment. Meaning that you technically do not have a down payment.

Does that make sense?

@Andrew Hill I see. That makes complete sense. Your strategy is sound my friend!