All Forum Posts by: Andy Pham

I must be missing something because I can't seem to figure out how people say that "take all their money back out" and invest it in another property. How do you qualify for another loan if you do a cash out refi or take out an equity loan and increase your debt? Yes your income goes up because of rent, but not enough to qualify you for a loan of the same size as when you had no debt and no rental income. 

For example,

On a salary of $85000, mortgage loan calculators say I can afford a $368k house at 6.735% interest rate when $60k down (default). Mortgage + Tax and Fees is estimated at $2400/month. Say I can get it to rent for $2500/month...that would bring my income to $115000, but I would still have a debt of $2400/month for Mortgage, Tax, and Fees. At a salary of $115000 annd monthly debt of $2400, my purchase budget is only $184k. How do I purchase another $368k or more expensive home when I only qualify for $184k?

I am looking to move to Clovis, CA (willing to consider nicer parts of Fresno) in about 6 months or so. I am unsure of what the best move to make is, but I am looking for a primary residence that I will likely stay in for at least 1-3 years. My plan is to rent out a room as a STR/MTR and possibly converting a garage into an ADU as well to rent out while I'm living there. I'm stuck between buying something that's move in ready versus something that needs some work because I have absolutely no knowledge of rehab and rehab cost and calculating potential ARV of a home.

I've only been searching on the MLS, but it seems like prices are around 300k for something that needs work to be STR/MTR ready. Otherwise, a move in ready home is aroundd 400k+. It seems like ADU builds can be pretty expensive, but I heard that the Clovis/Fresno has some sort of ADU grant? Anyone know more about how easy it is to apply and get this grant?

Thanks in advance.