All Forum Posts by: Assaf P.

@Assaf P. I did exactly that for my first mortgage. The only difference for me was that they asked for 25% down minimum. Other than that everything was same. 

Most banks will however consider 75% of the rent that you will receive from the property as income. So, the remaining 25% + the rent that you are paying for your residence will be considered against your DTI. This could be different from bank to bank. For me that was the case. Hope this helps.

Welcome to BP @Assaf P.! Landlords are pretty flexible if your story makes sense, I recommend just being upfront about your situation so they don't just to fear-based conclusions :)

Best of luck!

You live in LA, so my vote between those two is outskirts of LA. If you want to invest in Vegas, you can, but I would move to Vegas. There are so many advantages and things that you can do investing locally hands on that you just can't do out of state ... if you want to be completely hands off, then buy a REIT and be done with it.

For LA, I'd look in the Antelope Valley (Lancaster or Palmdale) to house hack your first investment property. Single families in decent neighborhoods can be had for mid $200k's and with FHA you can put as little as 3.5% on your primary residence (can get in for less than $15k down) so long as you can qualify with your income and credit (check with a mortgage broker).

I personally prefer small multis (2-4 unit) or single families with no HOA over condos ... better class of tenant generally, no HOA fees, and no loss of control to the HOA. If you do invest in a condo, make sure you at least get into a nicer, central, in demand neighborhood than you could otherwise afford. Also, make sure the HOA has minimal amenities and fees, has no restrictions on rentals (is landlord friendly), and sound financials before you buy.

Finally, whatever you buy, make sure you can afford to hold it through thick and thin (through a combination of rental and personal income) and you get a great deal ... generally, the only ones that lose out on REI in LA are those that can't afford to keep up with the expenses of the property and are forced to sell or get foreclosed on when the market dips ... sooner or later it will dip, the dip won't last, but you don't want to be that guy in the meantime.

Welcome to BP. California average housing price is $500k, FHA loans you might get away with 5-10% down BUT that requires a ton of paperwork and really high income to qualify. Conventional loans are 20% down, you do the math. You can get hard money lender for min interest rate of 10%. Las Vegas prices are more reasonable, $200k can get you a nice 3/2 in a decent neighborhood.

Hey man welcome to BP!

I recommend you go read The millionaire Real Estate investor by Gary Keller. It will answer most of your questions. 

Also read the BP guide to tenant screening. Those will help you figure this all out.