All Forum Posts by: Carlos Valencia

Hello Alvin, 

We have helped many of our investor clients with Helocs for their investments and primaries. We are also licensed in FL. Let's connect and learn more about how you want to use the Heloc to make sure we review all of your options to help you complete your next project. Typically you can go up to 75% combined Loan To value. Make sure you have enough equity to move forward and also you have to be below 50% debt to ratio income. 

@Albert Bui @Matthew Kwan

Hello Michelle, 

In order to qualify for a Heloc you will need to qualify just like you would when applying for a regular conventional loan. Meaning its a full documentation loan and you will need active income to qualify and only can go up to 50% debt to income ratio. If you meet those criteria then you can try to apply. Typically for investments you can go up to 75% of the homes value. But in order to go up that high you will need to be able to qualify. You did mentioned you do not have active income so the other option would be doing a cash out refinance to get money out using a Debt Service Rental Ratio loan. If you meet the guidelines you can potentially cash out up to 75% of the properties value. The way to qualify is we use the rental leases and divide that by the proposed mortgage payment to calculate the rental ratio. If your ratio is 1:1 or better you most likely will be able to get 75% of the value for the cash out plus better rates. Anything below 1:1 will limit how much you can take out and will have a bit higher rate. 

@Albert Bui @Matthew Kwan

Hello Nolan, 

Happy to connect and my team and i can discuss your scenario further. We have helped many investors with this strategy using FHA for house hacking. We just helped someone from bigger pockets that reached out to us to help them buy their next investment using FHA loan to purchase in Texas. Make sure you meet the guidelines to use this loan or you can always use conventional 5% down as well. We can provide you with two scenarios so you can decide for yourself which would be the best option for you. Keep in mind you have to live in the property at least 12 months to proceed.

@Albert Bui @Matthew Kwan

Hello Sam, 

Hard lenders look at the deal and look at your experience on past deals. If you are a new investor they will still will work with you but due to being new you will pay a higher interest rate and more points than an experienced investor. Therefore many people what they do to get around this is partner up with an experience investor to help them get better terms on the hard money and that also helps you gain experience that you can use for when you go solo. Hard money is mostly for flipping properties or using it as a bridge money for a temporary solution if you need more time depending on what type of trouble you get yourself into. Only use hard money as last resort as its intended to be used for short term investments or band aids to get your through. Hope this helps understand better how hard money works. 

@Albert Bui @Matthew Kwan

Hello Scott, 

Welcome to the BP community. What would you consider your next thing to be? The beauty about real estate investing is that theres almost endless possibilities you just have to network with the right people and understand the risk of each deal. I would say this to make sure you are planning your financials ahead of time to keep your options open and help you be more flexible when working on deals. We can be of service when it comes to reviewing your financials and help you explore what the best options would be for you depending on your overall goal. 

@Albert Bui @Matthew Kwan

Hello Brody, 

That is not a bad strategy and can be a good way to get started. Just make sure you underwrite accordingly so you can make sure you are coming out on top after your rehab. You have to ask yourself what the end goal and how many of these do you plan on doing to reach that goal. Depending on how you are acquiring these properties you may be able to just do one per year but that only matters if speed is an issues. Otherwise not bad. If you are going to acquire these properties using some type of financing its best to begin mortgage planning ahead of time so you can execute with the best precision. We can help with mortgage planning once you are ready feel free to reach out and connect. 

@Albert Bui @Matthew Kwan

Hello Jared, 

There's many local real estate meetups in Seattle. My team and I are actually hosting one this week in the Bellevue area. If you are interested in attending I can send you the link to the meetup. Feel free to send me a direct message. You will have the opportunity to meet like minded individuals with all different levels of investing. 

@Albert Bui @Matthew Kwan

Hello Brody, 

Sounds like you need to plan ahead and have a high level mortgage planning consultation so you do not run into problems and lose money. You might find a property that is not even financeable using a conventional loan. Typically these type of projects begin with hard money and then refi using a conventional loan. This is why you need to make sure you review your file prior to even getting the hard money loan because what if you do not even qualify for a conventional loan then you'll have problems and might not have a net benefit exit strategy. Get pre approved first for conventional so you know if you can use that as an exit strategy but purchase with hard money. Another option you can do is buy using conventional first and as long as you can live in it you can rehab slowly if you have the time and use money for rehab from another source if possible. Happy to connect if you would like to discuss further. 

@Albert Bui @Matthew Kwan

Hello Loan, 

Its definitely challenging market up in the bay area. I live in orange county Ca and we have the same issue. I personally do not own any rentals here in orange county but we do have clients in that live in orange county and many of them have to go out into riverside county or San Bernardino county to be able to cash flow and just barely nothing crazy. Maybe 100-300 or they break even. The only way to find something that can potentially cash flow in our expensive markets is finding an off market deal that does not need a lot of rehabbing or if you can add an ADU in the back to help increase your rents. You need to make sure you run your numbers to see what your break even point is and when you will actually cash flow. Many people also rent out mid term or short term to increase their cash flow and rent by the room or unit if you buy a multi unit property. That also helps increase cash flow. Try to avoid renting out a single family to an actual family because you will limit how much juice you can squeeze from that property. Its always best to review your file with an investor friendly mortgage broker like ourselves to see what are your best options in terms of financing your next deal and get a high level understanding on how to enter a property and also exit a property. If you are new you might over see many things that can get you into trouble and lose money and then have a salty taste about investing and not want to continue this journey. Its not easy but its possible you just need to talk to people who have done it before and learn from their mistakes and help minimize yours.

@Albert Bui @Matthew Kwan

Hello Richmiel, 

As long as you are owner occupying your next home weather it be duplex, triplex or fourplex and you still have enough entitlement left to purchase your second home you can. Otherwise you would need to use conventional or FHA. Its best to plan ahead and review your scenario to see what is the best plan of action into getting into your next investment. Happy to connect if you would like to get a high level review of your current scenario and execute with confidence on your next investment property.

@Albert Bui @Matthew Kwan