All Forum Posts by: Brian Bohrer

Hey @David Cunha,

I do not think that there is a limit.  Although I do know that after you have 6 - 10 Conventional primary residence loans that you may begin to be scrutinized a little more thoroughly by underwriting.   Honestly, though I feel most banks and lenders want to have performing notes and if you look good on paper, then they probably won't give you much kick back if you qualify.

I hope this helps and thank you for reading!  Good luck :)

Hey @Angelo Aguirre,

I feel the most powerful tool in your belt right now is the power of using an Assumable loan to purchase your next house. With your VA eligibility you have a great opportunity to take over an existing lower interest loan to buy your home here in Colorado Springs!

As others have mentioned in the above posts, you will have some limited options at the $300k range if you are buying a home at today's interest rates.  BUT, if you assume a loan that was originated a couple years ago you will have a much lower payment and can afford a much more expensive home!   There are over 55 properties on the active market today in Colorado Springs that are eligible for a loan assumption.

I assumed a VA loan last November on a $425,000 home that had a 3.08% interest rate. I have a monthly payment of $2,157 that includes Interest, Principal, Taxes and Insurance! With your VA eligibility and the amount of eligible VA or FHA Assumable loans in this military town, you have plenty of options!

The only negatives with an assumable loan is that they take longer to close, 60-90 days generally, and you would also need to come to the table with a little cash to cover the sellers equity (if any) and some other closing costs.  But you will save thousands of dollars every year on mortgage payments and don't forget that juicy additional principal paydown when you have a loan that has already amortized for 24+ payments!

If you would like to learn more about the absolute best way to buy a primary residence in this market than check out my blog post on biggerpockets here...

https://www.biggerpockets.com/forums/922/topics/1175338-maxi...

Good luck in your journey and if I can ever do anything to help you along your path, please reach out and let me know!  

Take Care,

Brian Bohrer - Realtor

I agree that house hacking is the single best strategy to get into real estate especially in today's interest rate environment!  I also would like to remind you all of a strategy that is growing in popularity in today's market... Assumable loans!  

These have not been in the limelight since the late 80's when was the last time we had a high interest rate loan market that immediately followed a lower rate market. ALL FHA, VA and USDA loans are assumable!! Imagine getting a 2% - 5% interest rate today and how much cash you would be saving every month on your mortgage payment and the increased debt paydown! Combine this strategy with house hacking and you have a recipe for cashflow that is unmatched by any other strategy! (IMO)

I personally assumed a loan for my most recent purchase (must be your primary residence) in November 2023 and was able to lock down a 3.08% interest rate in a 7.5% - 8% interest rate market!   On my $400,000 home I am saving approx $1,100 per month in mortgage payments, and am also paying down and extra $450 per month in principle paydown!  This is saving me over $18,000 per year in increased debt paydown and lowered mortgage payments!  I am not currently house hacking, but this allows me to rent the home for a profit when we move out in 6 months, which would be impossible if I took out a new loan to purchase.

I have blog post on this topic if anyone wants a little more of a deep dive into the powerful strategy of combining these two methods!

https://www.biggerpockets.com/forums/922/topics/1175338-maxi...

I wish you all the best in your House Hacking and investment journey!  Reach out if you need any advice from someone who has been through the assumable loan process :)

Hey @Ted Usatynski,

I am a local real estate agent in Colorado Springs and I recommend all of my clients and colleagues to use Isela Owens.  She can shop several companies to find you the best deal for your situation.  Tell her Brian sent you!

Isela Owens - [email protected] - 719.219.8498

Wow @Jack Stalnaker !

You are making some great income at 19!  Keep it up and save for that down-payment.  I would advise as others have here, and strongly suggest the house hack strategy to start with!

As a primary residence you can put less money down, leaving more reserves to cover mortgage payments, renovations and to save up for your next down-payment!  You will also get a taste of property management and learn the ropes as far as tenant relations, contracts and screening.

Another excellent strategy that I feel is the most powerful tool you can use in today's market is to purchase this home with an Assumable Loan! All FHA, VA and USDA loans are assumable and there are thousands of homeowners who bought in 2020-2022 who have an excellent interest rate and have no or low equity as the market has shifted. You could essentially find a home with low equity, pay for the closing costs and take-over a 2%-5% loan, saving you hundreds of dollars every month!

I wrote a blog post that dives into the powerful combination of assumable loans and house hacking if you want to learn more!

https://www.biggerpockets.com/forums/922/topics/1175338-maximizing-wealth-the-dynamic-duo-of-assuming-existing-loans-and-house-hacking

Please feel free to reach out if you have any questions and I will be happy to assist!  Good luck in your adventure! 

Take Care,

Brian Bohrer

Great questions @Austin Merritt !

I am partial to buy and hold so I would lean toward the "keep it" side of the fence...  As rents increase over the years, your cashflow will soon become positive while you ride the wave of inflation and appreciation! 

Do you know what you would buy with the equity if you did sell?  Current interest rates are going to make it difficult to reinvest into real estate and not come out of pocket more than $1000 annually, per your current situation.

I am also assuming you are paying a property manager with your current figures.  If so, you may consider a flexible property manager who will work with you on the fees and find a structure that works for you both!  Some savvy managers wont charge anything upfront and will collect when sold in the future instead!  Thus, allowing you to take home profits now and let your future appreciation pay the bill.

If you are interested in learning more about this style of property management please reach out and I would be happy to discuss!  I wish you the best in your adventure!

Take Care,

Brian Bohrer

Why not search for a house hack opportunity that also has a FHA, VA or USDA loan behind it? You can get a 2%-5% rate on a mortgage that you assume and since values have come down in most states over the past 2 years, you may be able to find a seller who would be willing to have you take over the payments and cover the closing costs!

I wrote a blog post about the most powerful purchasing strategy available to every buyer in todays market combined with house hacking!  

https://www.biggerpockets.com/forums/922/topics/1175338-maxi...

I personally bought my last primary residence in November 2023 with a 3.08% assumable loan (in a 7.5% rate market) and hope to buy my next few homes the same way every year!  I wish you the best in your journey!  If you have any questions, please feel free to reach out!  Take Care :)

Hey @Steven Nani,

There are several ways to find these loans. In my local MLS, it may not be true in your area, there is a field that a listing agent can fill out to designate the home they are selling has a FHA, VA or USDA loan which by default would make it assumable.

You can also reach out to your favorite local title company and ask if they can provide you with a search tool like TitlePro247 or provide you with a list of current on the market homes with a FHA, VA or USDA loan in place. This would be a great place to start!

I hope this helps and please reach out if you have any other questions! 

Take Care,

In my local market of Colorado Springs, the MLS has a section that can be filled out by the listing broker that will let other agents know that the home has an assumable loan. Otherwise, you can use a source like Propstream or TitlePro247 from a you favorite local title company to research homes on the market with assumable loans.

In my local area we have a ton of military that move in and out of the area every year so there are plenty of VA loans out there to search. Even if you do not have VA eligibility (non-veteran) you can still assume these loans if the seller allows their eligibility to transfer with the loan! I would suggest searching for all FHA, VA and USDA loans in your area with a filter for current houses on the market to find some opportunities. Also, a heads up that a typical loan assumption will take 60 - 90 days on average, so be prepared for a long closing period.

In our current market we have seen home values decline since 2020/2021/2022 so there may be some motivated sellers out there who need to sell but their loan is now greater than or equal to the value of their home.  This would essentially allow you to take over their payments with a very low down-payment, typically to just cover their closing costs!

Subject-to purchases are very enticing, but they are becoming more and more regulated as the federal government has stated that any realtors or closing companies who assist in a FHA, VA or USDA loan subject-to transaction may have their ability to transact these loans revoked for up to a year! I imagine we will see less and less of these subject-to transactions in the coming future as this method has been popularized by some famous proponents...

As far as finding these deals, a sub-to transaction would most likely be found by trolling foreclosures and finding off-market deals like a wholesaler. You can also find off-market assumable loan opportunities by soliciting foreclosures or cross referencing your VA, FHA, USDA list with active listing in your current market.

I hope this helps!  Please feel free to reach out if you have any other questions or want to pick my brain.  Take Care,

Hello @Joel Amparan

You have quite the interesting situation there.  I am a huge proponent of taking advantage of assumable loans in today's high interest rate market!  I personally assumed a loan for my most recent purchase and after I live here for another 6 months we will buying another one! 

As for your situation, it sounds like you are generating some good cashflow from your 2 rentals. I am curious if your Condo has enough equity that if you refinanced at today's rates and pulled the necessary $88,000 to cover your $18k debt and the $70k your parents want to move to Texas, would the rents from the Condo and the SFH in Colorado Springs be enough to cover the new payment?

I wish you the best and would love to hear about the plan you come up with!  Take Care :)