All Forum Posts by: Anthony Schiano

Quote from @Chris Seveney:

@Anthony Schiano

If you are buying investment property you will need 20%+ down. You will not get financed from a traditional lender for 3.5% down and if you could you also should not as you will be over leveraged and have little flexibility in case of a downturn or high vacancy

Hi Chris,

So correct me if I'm wrong, 3.5% is an FHA loan, which means that I cannot use that type of loan for investment properties. FHA loans are only for primary residences. So for each investment property, I need to use a conventional loan, which requires 20%. So, there is no way to put down less than 20% for investment properties?

Quote from @Myrtle Mike Thompson:

@Anthony Schiano what part of Myrtle Beach do you live in?  Near the university and the 501 corridor rooms rent for $500-$650/month.  I would start small... you'll gain confidence and wisdom with each purchase.  A listing came on over the weekend in Coastal Villas.  2bed, 2bath condo for $97k.  Will rent for $1200/month.  Something to consider.  Let me know if there's anything I can help with.  

Hi Mike, I live near Forestbrook Road, where all the new developments are happening in Bella Vita. I will definitely contact you once I get back from my vacation. Right now, I'm in Italy :D. I won't be back until the end of September. I started this conversation to get started, get an idea, and get educated. That $97k seems like a great opportunity for first-time investors, and with the equity I get back from refinancing, it seems like I can make it work.

Quote from @Olivia Radziszewski:

@Anthony Schiano- I would definitely start by getting pre-approved and speaking to a few lenders to have a solid idea of where you are currently at in terms of qualifying. It is definitely good to ask questions and a great indication that you are serious about this! However, without the entirety of the full picture it is hard to give specific advice. I tell this to all of my clients, get the pre-approval! It only marginally affects your credit score. I get one regularly!

Thank you, Olivia! I will definitely start by getting pre-approved and speaking to a few lenders. I'm in the process of refinancing my home to tap into my equity. Does it make sense to talk to a few lenders while I'm in the process of refinancing, or should I wait until that is done first? I wonder how that affects me when talking to lenders.

@Chris Seveney

Hi Chris! Thanks for your reply.

Yeah, sorry, I meant owning real estate.

So for any income that I receive from my roommates, lenders will not take that into consideration until after two years?

I'm not familiar with dscr loans. Is this something that a bank could offer?

If I do buy my first rental property, I'm thinking of putting only 3.5% down instead of 20% in order to have some extra cash on hand for an emergency. Also, I'm a software engineer by day, so that is helpful too.

Hello everyone,

My name is Jonathan, and I wanted to get involved with real estate investing.

I'm thinking about starting a short-term rental business, rental arbitrage, a laundromat, or partnering with someone in real estate.

Before I start out, I do have a couple of questions.

Current scenario:

I do own a house with a total of 4 rooms. I'm going to rent out 2 or 3 rooms, which could possibly cover my mortgage.

Bought Home: 300k

Current Owe: 200k

Current Value: 470k

Equity: 470k - 200k = 270k

80% LTV: 470k / 80% = 376k

Available Cash: 376k - 200k = 176k

I did talk to a lender at my local bank, and they are willing to give me 80% LTV.

Obviously, the great news is that I have 176k to use in my favor to invest.

The bad news is now my mortgage went up from ~1200k to ~1700k, and it resets my mortgage back to 30 years.

The good news: appreciation, tax benefits, tenants paying down your mortgage, and cash flow.

Like I said before, to cover most of my new mortgage, I'm going to rent out 2 or 3 rooms.

Does anyone have an idea what to charge for each room?

It is a nice big house, built in 2019, in a nice area (Myrtle Beach, SC), with nice attractions.

Should I get an LLC if I want to purchase another property with the extra money from refinancing?

How do banks look at my DTR (debt-to-ratio)? I mean, if I constantly buy a house, wait for the house value to increase, go to the bank and refinance, dump it into another property, and repeat, wouldn't I be in so much debt that banks would shy away from lending to me? Or would having a positive cash flow change all of that?

I'm assuming that once I receive the equity from refinancing, I have to re-apply for another loan and get a pre-approval from a bank in order to purchase the additional property. Is that correct?

If I get a pre-approval loan from my bank, is it possible to buy multiple rental properties?

Thank you and sorry for all these questions.