All Forum Posts by: Brian Person

Johnny,

Congratulations on your first property. I'm sure you will get different opinions on this question, but it really comes down to your risk level. My dad and I just start investing this past fall, but we bought five properties within six weeks for a total of 10 units. We closed on our sixth property this winter, a triplex. Currently we are in contract for two more properties, which will bring us to a total of 20 units within the first 10 months. So to answer your question, I don't believe it is too ambitious, but everyone is different. You should not have a problem getting another loan this soon, but I would advise speaking with your loan officer to confirm this. They will be able to tell you what your buying power is. 

Again congratulations on taking the first step. Good luck. 

You're welcome. We also use an app called Receipts that allows us to scan receipts right into a dropbox folder. Then we will upload the receipt to the program when we enter an expense. So we have the receipt in the program, dropbox, plus we keep a box as well for hard copies. 

Hello,

My father and I have 13 units right now that we have acquired over the past 9 months or so. We have been using a program called Rent Tech Direct. It's about $15/ month, but has worked really well for us. It allows up to track expenses per property, tenant, general business, whatever you may need. If you have MF, you can break it down for the whole property and per unit. You can also attached accounts and run multiple reports. For taxes this year, we ran the Schedule E Assistant for each property and the business and gave them to our CPA. Made it very simple for him. 

You can even list for properties for rent through the website as well. 

My father and I have one for our LLC. We wrote it ourselves based on the examples you can get online for your state. For us, it was the state of Ohio. You can search online to find different types depending on exactly what you are looking for. We also had a lawyer review the agreement for us and made a few changes. Cost us a few hundred bucks, but worth it.

@Jeffrey Gagnon It would be an awesome idea for you to house hack using for VA loan. It would require very little money upfront and you could get a three or four unit property that you could keep for a long time if it is a great deal. If it is cash flowing with you living there, it will be even better once you move out. At your age, this is a great way to get started in Real Estate. Also, Jerry makes a very good point. Make sure to check on how the utilities are metered, as this will make a big difference in your expenses and cash flow.

But to answer your question, there is a good chance a multifamily property with cash flow quite well unless its in a very expensive area. 

On another note, with your VA loan, you are allowed to have more than on VA loan at a time. This may help you in the future if you continue to house hack or decide to buy a SFR after for your personal use, but there are some caveats to it. Let me know if you have any questions.

Thank you for your service and good luck! 

@Randy G.,

Thank you for the extra details. I believe the reason the underwriter wants you to have a US address is more for federal guidelines as loans can be different if you are not a resident of the US. Although I'm not positive on that, I have been out of the mortgage game for about a year and a half. 

I do know one way around the POA issue is to sign the paperwork yourself. All you need is a US notary to sign the forms. So depending where you are, there is a good chance an office or embassy near you could have one. I had a client who did this when had to fly to India due to family issues and they still wanted to close. Just a thought. This might not help for this loan, but it could in the future.

@Melissa Searing,

Chris is spot on about the LPMI. It is a great product for the right person. Your interest rate will be slightly higher, but your payment will be considerably lower depending on your loan amount. The best thing to do is compare the two products, LPMI and monthly PMI and see which one makes sense for you. Also, since LPMI is rolled into the rate, you can fully deduct it on your taxes if you are eligible for that deduction.

Now, I do know some lenders that will do a conventional loan with 5% down and no PMI, but you would have a 2nd mortgage instead. So you would have an 80% 1st mortgage and a 15% second mortgage. I'm not the biggest fan of this for purchases, but it was a very successful product for refinances depending on the client.

@Randy G.,

Andrew is correct about the overlay. What would be the reason for the POA? There is always a way around an overlay if the loan officer is any good. Also, do you reside in the US or do all of the borrowers? That seems to be all the underwriter is asking.

@Curtis H.

If this is for your primary home, this is a pretty competitive rate. You have to remember, rates have increased quite a bit the past few months. As the stock market has gotten better in the past three months, the 10yr treasury yield has increased as well. Today it is 2.47 while in November is was closer to 1.75 and even lower last summer. 

Also, as far as fees go, on a $400k loan, $1500 in lender fees is pretty reasonable. I cannot speak to the title fees as those change from state to state and county to county. I do remember California being a bit more expensive when I used to write mortgages there. 

Another note is that rates on refinances will be slightly higher than on purchases. 

@Ryan Sarazin

Once you have your job you should be able to get an FHA loan. Typically you are required to have a two year work history, but if you were in school and obtained a job in your field, that will count towards your two years. So once you have the job, you should be able to get an FHA loan, which you can then use to purchase a 2-4 unit home with as little as 3.5% down. I would recommend speaking to a loan officer in your area to get more accurate information.

Let me know if you have any other questions.