All Forum Posts by: Armando Carrera

Im an agent and investor in scottsdale who has used 10 down for myself and clients. 10 down used to be super popular before March of 2022. Rate were low, prices were cheaper and it was a great way to use a secondary home loan to buy a rental, long term or short term, especially in the phoenix / scottsdale / az market. The government saw the housing bubble and changed guidlines with fannie and freddie to make the 10 down / 2nd home loan product very expensive (about 4 points to close). Those points have now come down so we're seeing more folks in az using that program to buy from out of state.

Hey Jeremy,

Do you think we'll see 10% down again?

1 Vote

I was hoping to purchase another investment home with 10% down (since we did that years ago in AZ) but lender explained that is no longer possible. Basically why they did that was to deter investors from purchasing locally. Many investors were easily putting 10% down and taking up many of the homes for sale. Lenders (maybe even the state), wanted to give locals a chance to purchase their home.

I dont see a problem with investors needing to come in with 20% down. Less leverage for us.

1 Vote

Quote from @Dustin Tucker:

Hello Armando,

I would evaluate my equity position and see if there was additional equity I could pull out of one of my rental properties.

I would shoot for the Fix to Rent Strategy, I feel like it doesn't take a lot of effort to find a 70% or less property in the current market. Also rental rates are dropping, and we are already seeing rental loan rates in the 5% range, I would expect to see rental rates under 5% by January.

If you are going to be a real estate investor for the long term, why don't have your Real Estate License? You are losing up to 3% on each investment property purchase, also, you get a lot of great tools for evaluating properties, market research, etc.

Hi Dustin

Thanks for the reply! We’ve always been cautious (scared actually) about pulling equity out of our homes.
Getting my RE license is a good idea. Not sure how much it would benefit me in the long run? Paying brokerage fees etc to really only use it once or twice in the next few years?

0 Votes

Hi everyone,

I'd like some advice if you wouldnt mind chiming in.

After closing on our third home, where would you suggest we focus our future on? Work on paying off a home or maybe save for another home in the future?

Here are our mortgages and a snapshot of each one

1) Primary residence: 6.2%, $2,240/month (29 years left)

2)First rental: 3.2%, $1,440/month ($500 CF, 10 years left)

3) Second rental: 7.2%, $2,100/month ($300 CF, 30 years left)

4) Save another 20% for another investment home. This would take us about 30 months

5) Other ideas/ suggestions.

Im all ears.

Thanks for your time everyone!

0 Votes

Quote from @Noah Corwick:

Way to go Armando! Better to buy now before rates go down, price go up even more and crazy bidding wars return.

The buyers who couldn't buy during Covid will come back with vengeance.

Well said Noah!

0 Votes

Quote from @Nicholas L.:

@Armando Carrera

congrats. just remember though that there are lots of expenses on top of PITI. are you self managing this property or hiring a PM?

Hi Nick!

Thank you, we are self-managing the property. We've had our other one for over 7 years and luckily no tenant issues etc. minor handyman things my wife and I typically take care of it.

1 Vote

Hi everyone,

My wife and I are two weeks away from closing on our second investment property in the Phoenix area. It may or may not be the best time to purchase due to rates and high prices. But since we both have decent W2 jobs we decided to take the plunge. We are in it for the long game, so we felt it was right for us.

Putting 20% down really puts a dent on our liquid money but better (we think) than it just losing value in the bank.

Just for reference, our interest rate is 7.2% with an all-in mortgage (PITI) of $2,040. We will be doing a long-term rental for $2,400/month. We're extremely excited to grow our portfolio!

Thanks to everyone on these forums for giving us courage and insight.

1 Vote

Hi everyone,

Wife and I visited Flagstaff over the weekend and loved it. Now are considering purchasing out there to become part time "snowbirds". We have about $100k to put down which is about 20% in the market we are looking at. With high interest rates, we'd be looking at around $3800 PITI. How successful have any of you been in that market? We can cover that monthly but would be happy with a 50% occupancy to help offset those costs. Recommend any tips (for STRs), any guidance etc.

We live in the Phoenix metro area..

Thanks everyone.

3 Votes

Flagstaff, Arizona

Hi Farooq,

Ive also asked that myself. Im on the west valley and prices are still out of this world. 400k for a decent home that rents for $2200.

What Ive gathered is that these investors have/are in:

Syndicates

Partnerships

Refi their appreciating home to purchase another one

Either way, a lot of these people own a small percentage of that home and/or are very over leveraged

1 Vote

Gilbert, Arizona

All Forum Posts by: Armando Carrera

Armando Carrera has started 20 posts and replied 70 times.

Post: Who does DSCR loans on Manufactured homes

Post: 2nd home/vacation mortgages available at 10%?

Post: 2nd home/vacation mortgages available at 10%?

Post: Where to focus on next?

Post: Where to focus on next?

Post: About to close on our second investment property

Post: About to close on our second investment property

Post: About to close on our second investment property

Post: STR in Flagstaff?

Post: Venting on trying to start in AZ how??