All Forum Posts by: Andrew Zamboroski

If I want to maintain a healthy DTI for a primary residence conventional loan in a couple years, what should I be aware of, or what strategies must I employ? My current W-2 and rental income(4 duplexes in my name) have me at about 35%DTI, I am about to add another multi-fam property and it would bump my DTI to 46% even though it cash flows $2000...Do people simply start buying in LLCs(DSCR) at this point for this reason?

Any advice appreciated.

You will want to ensure you are claiming income on your return. While losses help offset taxes, not being able to count that income towards the mortgage can hurt you when purchasing something new.

1 Vote

Quote from @Joseph Fenner:

I am looking to house hack a property out of state with an FHA loan within 4-5 months. What should I know about using FHA loans for out of state investing?

What complexities should I expect and what else should I know regarding the financial side?

When you say out of state, are you moving to the new state? Or are you trying to buy the property as an owner occupied primary residence while living in another state?

0 Votes

Quote from @James Yang:

Hi guys!

This would be my first post at BP. I am in the process of purchasing my first house (woo hoo!) and need your help figuring out what to do with my loans.

Purchase price of $1.1mil, and I am planning to put in some work into it ($200 to 300k) since the house hasn't been renovated for over 30 years.

My question to you guys is:

1. Should I put down 20% as a general rule? or should I put down as low as possible?

2. Let's say the appraisal comes in at a good value after repairs/renovations, should I refinance? or just leave it as it is. I don't think I immediately need cash, and even I do cash out refinance and get some cash back, I dont' know if it makes sense to get a larger loan amount and higher monthly payments.

3. does amount of down payment matter if I end up doing/not doing cash out refinance?

I would sincerely appreciate your help!

thank you very much guys

Congratulations! Some great advice already on this thread. The truth is, it’s based on a multitude of factors and ultimately comes down to what makes sense to you. In my personal opinion, it depends on whether or not you plan to refinance and if the rehab you do will substantially increase the value. If you do refinance post-rehab at a higher value, it could help cover any lack of downpayment you put down on the purchase. By saving cash, you’ll have more money for rehab.

either way, enjoy the journey!

1 Vote

Quote from @Ketra King:

Hi all. How are investors funding the purchase of land to build on?? I’ve read that lenders typically don’t lend on land due to the risks. Are they really using their own cash?? Also, how are they keeping the land purchase from impacting qualifying for construction loans??

Tyler brought up some excellent points!

We do have a lot of builders who purchase the land cash. They will then use equity in the land towards their build costs when financing for construction.

I hope that helps!

1 Vote

Quote from @Roger West:

In NJ. What types of programs are typically available for borrowers with 800 scores, 1m liquid, looking for 350 to 400k loan to buy land and build a spec for resale. What ltv on the land and what on the build?

Roger,

Is this your first spec? Experience can also play a large factor on financing.

0 Votes

Quote from @Matthew Meizis:

Where can I find basic template to write a mortgage for family. I want to be sure to be able to secure it with the real estate.

You may want to have a local real estate attorney draft it up. If for some reason you have to take action, the same attorney can be a great resource. Often times the cost is minimal compared to the amount of money at risk with a mortgage.

0 Votes

Chicago, Illinois

Quote from @Rajiv R.:

Purchasing a new townhome and received the following as best so far:

- 6.875% 7/1 ARM

- 7.35% 30-year fixed

I am aware of the risks with the ARM and plan is to either refi when (if) rates drop, or sell around year 5 (along with others I plan to purchase) to get into commercial or larger multifamily. There is a small chance I keep this one and continue to build the portfolio.

One lender is pushing the 7/1 and the other tells me an ARM isn’t for investment properties. Everyone has their incentives so wanted to ask here for some unbiased advice.

At the end of the day, it is really dependent on your situation. If the 7/1 works better for your business needs, that’s what matters most. When I have clients contemplating the two, I look at holding plan (you already did this, so great there) and the difference in payment. Is the 7/1 monthly payment lower enough to offset the hedge of a 30-year fixed? Beyond rate, is there any cost difference between the two?

1 Vote

Quote from @Dante Ritchey:

Hello Everyone,

I am looking to see if you have any recommendations for low down owner occupied lenders in the area? Looking to get into my next househack and want to hear who has been successful for you all!

Thank you in advance!

The site https://mortgagematchup.com/ should help you find a local mortgage broker. If you want to get even more craft, cross reference with local investor groups to see who may have the investor niche! Although any mortgage broker can help, someone who has a specialty in what your pursuing should make things easy.

0 Votes

Worcester, Massachusetts

Quote from @Michael L.:

I got faith that my "BP Fam" can shed some light on this for me, so big thanks in advance. What are the factors other than the interest rate when choosing between a Heloc or a cash out refi?

Jay hit the nail on the head with this one. Long term versus short term deployment of capital is usually the biggest differentiator.

1 Vote

Quote from @Cisco Gutierrez:

Hey BP, I have seen some people have been asked to give a down payment just to apply for a loan (in the last conversation I had , it was with an investor who needed a commercial loan)
How common is this and why is that even asked before the loan has been given, would it apply to the balance eventually?

Cisco,

It really depends on the loan type. As Erik mentioned, commercial loans can often have a due diligence fee, portfolio loans too sometimes. However, consider the source too! There are many scammers out there that make money taking funds on the front end. If the terms sound too good to be true, something does not feel right, or it’s not right situationally, it make not be legitimate.

When it is legitimate, it is used to cover costs on the lenders side. A lot can go into larger deals as an example and of the borrower does not perform, no one likes to get caught on the hook for those expenses. Usually any amount not used is refundable if a borrower walks away. If there is money left at closing, that amount is typically credited to the borrower as well.

I hope that helps!

0 Votes

All Forum Posts by: Andrew Zamboroski

Andrew Zamboroski has started 0 posts and replied 270 times.

Post: Rental properties affecting DTI

Post: How does the financial side work when house hacking out of state with an FHA loan?

Post: Need your help! Buying my first house and need advices on financing.

Post: Financing Land Purchase and Construction

Post: Ground up financing NJ

Post: free mortgage and promissory note template to write a mortgage for family

Post: 30 yr vs ARM

Post: Owner Occupied Lenders

Post: To Heloc or Not to Heloc is my question?

Post: How Common are Down Payments to Apply for Loan