All Forum Posts by: Anthony Michael Hamza

@Josh Robertson first of all, wow! Thank you for your very thorough response! This helps clarify the issue a bit more for sure. I will read into the references you provided. Thanks for steering me in the right direction. 

Respectfully,

Anthony M. Hamza

@Tony Thomas thanks for feedback. I don't want to go that route at this time. Mixing business in my personal relationships, that is. I think I am leaning towards just being more patient and holding off until I can cover the cash-to-close on my own. I saw a property I was interested in and have been trying to find loopholes to make it work creatively. But it is really going to be over-leveraged and the cashflow will likely not be worth it. The hard part is waiting. I have great income, credit, and DTI. I did just buy my primary last August, so hopefully it won't take long to get built back up, especially since I just my first lease renewal with a rent increase.

@Nicholas L. Thanks for that insight! Yes, I see that the cashflow is very minimal if anything with this strategy. Unfortunately, I will likely have to just be more patient and build up enough capital to have less leverage. The refinance part was more trying to move the leverage from my other home to the new one somehow. I appreciate the feedback for sure!

@Zach Edelman appreciate the input. My IR in FL is 2.25% so not touching that! 

@Sean MacDonald thanks for the tips. I am currently working on lowering the HELOC to about $80k for cash-to-close and reserves while shopping for a conventional with low rates for the actual mortgage. The estimated payment for the HELOC is about $650/m. Hoping this strategy works.

Hey BP Pros!

I am trying to figure out if I should purchase my first multifamily property and I am looking in Rochester, NY. However, I noticed that the zoning for the properties that I want is all R-1 Low Density Residential. Is it not risky to buy a legal, yet non-conforming investment? What happens if you are in-between tenants and have to do some permitted renovations? Does the loss of the certificate of occupancy now render your property illegal? 

I hope there are some experienced with these types of issue that can put my mind at ease! I just called the City Zoning Department and they basically said that it is legal, until it isn't. Which does not really sit well with me. 

Looking forward to the feedback!

Respectfully,

Anthony M. Hamza

Thanks for reaching out, Cam. Yes, I will look into this further. However, I was trying to avoid a large down payment such as 20%. Perhaps I can lower the HELOC and just take out what is needed for the down payment and then get a conventional loan or DSCR. Thanks for the ideas!

Respectfully,

Anthony M. Hamza

Thank you for that insight, Don. Of course, I still have to complete my due diligence, but some markets are definitely providing some opportunities like this. I am hoping there is nothing major. I assume there is some sort of repair required though. I will provide an update if it works out.

Respectfully,

Anthony M. Hamza

Hey BP Fam!

I need your advice! I have a lot of equity in a rental property in FL ($500k+) but I am trying to find creative ways to purchase a duplex in NY. I haven’t had luck getting a HELOC because my FL property is a rental and a conventional loan requires a big down payment plus reserves and closing costs. I don’t have much equity in my current primary yet since I just bought it last year. The duplex I want is only listed at $200k. I applied for a HELOC through Figure since I heard they will lend on investment properties. Does anyone have experience with this company or know if this is legit? FIGURE approved me for up to $186k with a 4.99% origination fee and an 8.5%-8.99% 30 year fixed HELOC. Thinking about making a cash offer on the property and buying it outright. Then refinancing later for a lower IR. The rents are stated as $2000 & $1175 for each unit respectively. The monthly loan payment would be $1559 and it doesn’t appear to need any renovations immediately so low on CAPEX up front. Does this sound like a smart move? This is my first time doing anything like this. I own two homes I purchased with 30-yr fixed VA loans. I appreciate any advice!

Respectfully,

Anthony

@Ryan Spath 

Hey Ryan,

Thanks for that detailed response! Those are some great tips. I really appreciate that. 

I hope you have continued success as well. Glad to add you to my network.

Respectfully,

Anthony