All Forum Posts by: Carlos Valencia

Hi Trevor, 

The only way to use FHA again is to either Refi out of your current FHA to use it for your next 3 or 4 plex. One thing to keep in mind when when using rental income from your current FHA triplex you have to follow the 100 mile rule which means you have to live 100 miles from the FHA property. Theres other ways around this too.

@Albert Bui @Matthew Kwan

Hello Marisa, 

I would be happy to connect and go over different strategies to achieve your real estate investing goals. Theres so many different loan programs available from zero money down to 25% or more down. It will really depends on your scenario and type of property your looking into investing. 

@Albert Bui @Matthew Kwan 

Hello Brandan, 

Are you self employed as a plumber or are you working for a company as W2? If you are W2 its a great idea to continue working there to be pre approved for your next investment. Self employment income we would need at least 12 months of self employment. You dont need to be at the same job for two years but you need to have work history of two years with no major gap. 

IF your current income is enough to prequalify you for a fourplex or duplex then I would stay at your current job as plumber. To use FHA for a fourplex you would need to pass the self sufficient test which the rents need to at least cover your full monthly mortgage with taxes and insurance or better. If you decide to look into a duplex you do not need to pass that self sufficient test. If selling solar is going to make you more income then go for it and save money while you reach those 12 months of self employment. Best way is to get pre approved on your current scenario and look at the market to see what you can prequalify for so you can decide if you need to make more income and save more money or if you can start now. Hope this helps.

@Albert Bui @Matthew Kwan

Hi Logan, 

Congratulations on your success. This is probably the best strategy for anyone who is interested in Real estate investing. There not much risk and you can decide to sell it or rent it out when your ready to look for your next investments property. Its a great way to start buy as primary live in it and rent it out or sell its a personal decision. 

@Albert Bui @Matthew Kwan

Hello Jaben, 

I would suggest to continue saving and continue to increase your income so you can reach your goal much faster. No need to rush your still young. Continue learning and if possible try to find a mentor and offer them your time so you can learn while you help them. Also explore all options of real estate investing and make sure you find the one path that meets your personality. Who knows you might not like to manage tenants. Hope this helps. 

@Albert Bui @Matthew Kwan

Hello Jay, 

Socal is definitely challenging market to buy something to have immediate cashflow. Even going out to San Bernardino County is challenging. Definitely best if you can find something that need work or is in foreclosure then you might have something were you can possibly break even. I think the best option right now is to buy something that you can house hack and be able to pay s little as possible out of pocket towards your mortgage. The best thing we have going for us is appreciation over time and then hopefully refinance and maybe cashflow then depending on the rates and rents in the future. At least you can guarantee that your property appreciation in socal will be strong in the future. Good luck with your search. By the way we host monthly real estate socials in Anaheim if you are interested I can send you the info. 

@Albert Bui @Matthew Kwan

Hello James, 

I would recommend buying an investment property that you can live as a primary. You can do FHA with 3.5 % down on a duplex and move out after 12 months of living there. That is one option or you can do triplex but you would need to pass the self sufficient rule which basically means that your rents need to cover your mortgage payment or better. I would stay away from rough areas as your tenants might not be the quality tenants you would want to manage. You might end up having a bad experience and not want to continue investing in real estate. I've seen it before where people have a bad experience on their first investment and call it quits after that. Just be careful and keep that in mind when looking at where to invest. Hope this helps. Good luck on your journey.

@Albert Bui @Matthew Kwan

Hello Hannah, 

Yes if your cashing out using conventional financing those are things they will ask of you Credit, Income and assets. You can also do cashout refi using non-conventional products like DSCR loan which is a Debt Service Coverage ratio loan. This loan only uses your rents to qualify so it will depend on how the property is performing. Thats what they look at for example will the new mortgage payment with taxes and insurance be paid covered from rents 100% or more. Or will the rents be short and only cover 80% of the mortgage payment with taxes and insurance. Depending on your scenario its worth looking at both options. DSCR or conventional. You can also use DSCR to buy your next investment property and not refi your first unless you need the money.

@Albert Bui @Matthew Kwan

Hello Izzy, 

Theres still  many things to consider before moving to your next property. You mentioned its a 2 unit property. Once you move out do you know if your rents will cover your current mortgage payment? If it does that will help you offset that monthly debt and help your debt to income ratio. If you just bought it it might be a little challenging to refi our do a heloc as there might not be much appreciation yet. For the heloc/refi you might have to wait a little longer to get more appreciation. Maybe not pay down the mortgage faster instead continue saving for your next property. Hope this helps.

@Albert Bui @Matthew Kwan

Hello Tara, 

First step is actually to speak with a lender and get pre approved and discuss your strategy for investing. What is it exactly that your trying to accomplish with your next investment property. Are you trying to buy it as an owner occupied? Non-owner occupied?  is cashflow important or are you looking for more appreciation overtime? Theres still many questions to ask. The best way to answer these questions is by getting pre approved and if possible with a lender who also works with many investors and invest as well as they will be the most knowledgeable when it comes to what loan programs may best fit your scenario. Once you figure out the loan product your using and how much you prequalify for then you can speak to a realtor to help you find a good deal. Hope this helps. 

@Albert Bui @Matthew Kwan