All Forum Posts by: Brennan Doherty

@Jonathan Bombaci

Hi Jon, thanks for the advice, it's incredibly helpful! I guess my main concern at the moment is my income. I know a 3-4 family in Lowell isn't cheap, looks like I'd have trouble finding one for less than 400k. So I'm wondering if I would qualify for a loan that large while my currently salary is only 40-45k. Would I not have to worry about this if I bring on someone to cosign such as my parents? Or if there are any other ways around this I'd love to hear some other options. I'm probably going to start looking in the next few months and try to pull the trigger in the Spring, so I'd like to have a solid plan laid put before I get started. I'll be sure to keep you in mind when I start looking!

@Zack Karp

Thanks for the reply Zack. I've never considered the 5% down conventional loan as an option but I've been hearing that it's a good way to go, especially since I have enough to get started. If I decide go that route I'm assuming I would still have to pay PMI until I reach 20% equity correct?

Thank you so much everyone for all the info! All of this is extremely helpful.

@Jon Schwartz

Much less than I originally thought. Thank you very much, I'll be sure to look into this.

@Jon Schwartz

Thanks Jon, much appreciated.

I haven't heard of the "streamlined" 203k loan before, so I'll be sure to look into that! Sounds like a pretty good option.

Does the property need a specific amount of work that needs to be done in order to qualify for a 203k loan? I'm assuming they don't hand those out to just anybody.

@Steven Correale

Thanks for the reply Steve. I was considering a 203k loan, I just heard those have a ton of hoops to jump through, although it is definitely a fantastic way to build equity. My plan was to look for a property that needed a cosmetic rehab so I can boost the value relatively easily and refinance out of the FHA loan after to avoid paying PMI. I'm not sure if I like the idea of putting ALL of my money into a down payment (Lowell isn't cheap) in the event that something inevitably goes wrong. That's why the 3.5% down sounds so appealing.

Hi everyone,

This is my first post on biggerpockets in a couple years, and it's going to be a long one so bear with me! I'm looking for advice on how I should get started.

Im 23 and I recently graduated in January with a degree in finance from Umass Lowell, 0 debt whatsoever. No monthly payments aside from car insurance and my phone bill, totaling roughly 150 a month. I realize how lucky I am to be in that position. I feel like it's also important to mention my yearly salary is roughly 45k at the moment.

I knew I was lucky to have 0 debt so I tried to take advantage, working as much as possible throughout college. Currently, I have 25k sitting in my dividend growth portfolio, adding 250 each week, and another 20k sitting in growth stocks. Then I have roughly 10k (which I'm building on) in savings which I plan to use in the near future for a house hack in the Lowell area. I planned on doing this for the first few years, growing a nice little portfolio of small multifamilys using FHA loans and refinancing. I secured a job at a bank after interning there for about a year, and I've been there since January (they offered me a job upon graduation.) I guess what I'm asking is, what would be the best way to use this money in terms of real estate? My ultimate goal is to be "retired" from my 9-5 by my early 30s so I can make the switch to real estate investing full time. Any advice is greatly appreciated as I know there's plenty of wisdom from experienced professionals on this site. Thank you in advance!

@Lisa Kattenhorn,

Hi Lisa, I'm new myself and am currently aiming to house-hack a 3-4 unit myself in the Worcester area. I wish you the best of luck and hope you find something! Keep us updated on your search.

@Brian J Allen, Nice to see you again, I'd definitely be interested in that presentation as well if you're still thinking about having it!

@Chris Jensen

Hi Chris, thanks for the reply.

I'd likely be using it to cover the entire purchase price, or atleast for a portion of it, depending how much they would feel comfortable with lending me. If that's the case, I'd be utilizing another private lender to make the deal work. Unfortunately I know you can't use someone else's money as just a down payment because the bank will want to know where it came from and how you plan to pay for the rest as far as I know, and seeing as I'm 21, I doubt I'll be able to explain how I managed to get my hands on a couple hundred thousand dollars. 

I'd then use my own funds to cover any renovations/improvements to push the value up a bit, which I WOULD be able to afford, and I would then refinance to hopefully pull most of that cash back out. Do you think this seems possible/like a good idea?

Hi everyone,

I'm currently trying to figure out different ways to finance my first deals, and private money seems to be a great option. However, due to the fact that I'm just starting out, I don't exactly have an extensive network of individuals waiting in line to lend me their money. My parents have a considerable amount of equity in their primary home as they've been living there for well over 20 years, and I was wondering if it was possible to (potentially) have them take out a HELOC and allow me to use that as a private money loan provided I pay it back within a year or two? Or if I were to use a HELOC as a way to invest, does it have to be from a property that I own personally? Has anyone successfully done this?

I also feel it's important to mention that I'll be using that HELOC loan and implementing the BRRRR strategy, likely on a small multifamily home/ very small apartment complex( less than 10 units). I'd be raising the value, refinancing and paying off the loan within a year or two. I understand there's a big difference between commercial/residential properties, but I'm just curious if using this strategy in general would be at all possible.

Any insight would be appreciated, thanks everyone!