All Forum Posts by: Barry Rupisan

@Steve K. Thank you so much! Yes the HML is something that I was originally looking at, but only for the down payment. But are you saying, have them finance it 100% in order to start the BRRRR process?

Yes @Billy Brown! It sounds like a great strategy, I am just having a difficult time breaking into my first investment with little of my own money. 

Thank you both!

Thanks @Perry Farella. I think I was confused with the comment above from @Michael Cohen "With HomeStyle, you could do: 1) 5% down SFH..."

I was hoping that i could only put 5% down on an investment property to get started. 

@Perry Farella and @Michael Cohen Thank you for this information about the HomeStyle loan. I will have to do more research on this. 

Perry, when you say, "...all the debt is on the new investment house on not on your personal residence" does that mean that the HomeStyle loan is not an owner-occupied type of loan? 

Unfortunately due to restrictions outlined in my divorce decree, i must keep my daughter in the same school, so i cannot move out of her school's feeder area until she graduates. I have tried looking for other homes in the feeder area, but they are all $400k and above, so it really wouldn't make much sense to move into another house and rent mine out because there would be little to no cash flow on my property. So I am kind of stuck with this for now until i am able to save enough working capital to just put 20-25% down on an investment property. 

@Stephanie P.

Thank you for this advice! Unfortunately, i am unable to do an FHA loan. Its complicated, but it has everything to do with custody of my child and keeping her in the same school. But the FHA loan was the first thing i jumped to until i found out what the stipulation was...

I am not quite familiar with the lease option or seller financed deal. I may have to do more research on those options. If you have any other options, please throw them my way. I feel like i may be running out of options, but it sounds like there are other ways around it. I just don't want to give up on this dream.

@Michael Cohen

Thank you for this additional info! It looks like i may need to go back to the drawing board and rethink how i will pay for my first property. 

@Ozzy Sirimsi

Thank you! That makes perfect sense. 

@Christopher Giannino

Thank you so much for explaining this to me. If I understood you correctly, its not best to use HML money for down payment only, but they can fund a large portion if not the entire purchase and rehab cost, then refinance out of the HML?

Hello All - 

I am a newbie to the whole REI world. I have been reading up on the forums and listening to the podcasts but I cannot quite find the right answers to my questions.

I am thinking about using a hard money lender to help me with the down payment on my first and maybe second rental properties so that I won't have to use an FHA loan. After renting the property out, I plan on refinancing it so that I can pay the hard money lender back their money, then repeat as outlined in the BRRRRR Strategy.

BUT, when I refinance the house, will i be able to get a conventional loan for the entire amount even though I will no longer have the hard money use to initially pay for the down payment? I am not sure how that all works, I am a bit confused...

Any help is appreciated. 

Thanks in advance,

Barry 

@Dan Mackin, Thanks for holding this meetup! My girlfriend and I would love to attend. I am an REI Newbie so I am eager to get started and ditch my 9 to 5. We look forward to meeting you and networking other Real Estate Investors.