All Forum Posts by: Cherie Orellana

@Daniel Holbrook

We have a horse property in West Jordan that almost meets this criteria. It has a mother in law with separate entrance as well. It is single family, however last I checked, 5 unrelated individuals can live in a single family in West Jordan. We have always rented each level separate but kept it under the 5. I just gave tenants notice to be out end of October to list the property. You are welcome to message if you want more info on it.

@Jordan James Redford

I have heard of a couple credit unions treating it as an investment property as far as the interest rate/ terms of loan if you are renting part of it. If you need the income to qualify from the basement apartment, include it. Otherwise I wouldn't specify that one way or another. It's just getting an appraisal on your home and increasing the HELOC. I have found personally that American first and University Credit union have been the easiest for me on HELOCS personally.

@Quinell Dixon

I think real estate and buy and hold is a great strategy for setting up future. There are a few things I notice in this post. First, we don’t have to have it all figured out. We do need to have a vision or goals and take action but learning as we go is part of life. Second, I am no dr, so disclosure there :) however have you ever been assessed for ADHD? It’s a blessing and a curse. Consider yourself lucky and embrace it if you do :) It wouldn’t surprise me if the majority of people on this platform are Neurodiverse. If someone owns their own business, that is my first assumption. Perhaps recognizing strengths and weaknesses can help us strategize more effectively in our endeavors.

Don’t get discouraged in real estate, once you get a win it will help drive your passion and excitement and interest. I would just keep learning everything you can and downloading all info real estate related.

If you are already running your own business, wholesaling sounds like it could be difficult as far as time, energy and effort needed. However I think it’s great to know how it works and use it even if you aren’t the “wholesaler” There have been multiple instances my husband and I have purchased a property from a wholesaler using hard money, immediately refinancing into long term financing as buy and hold reducing the amount of money we need down on an investment property. Once you own the property and it becomes a refinance, you just need the 20-25% equity as opposed to down payment as needed with a “purchase”.

I also believe you can definitely Househack with a family of 5. There are properties out there that will meet the size criteria. If you don't find one immediately, you might be able to create one with an ADU on your property or something like that.

I think this is a great place to start. Live there a year or 2 then buy your next owner occupied and Househack over and over growing your portfolio.

Lastly, my mantra in life is “everything is exactly as it should be” it allows me to be present, to accept whatever is happening, to live without fear. The universe orchestrates everything perfectly. If something is unfolding in our life, it should be. We acknowledge/accept , make a plan and move foreword. “Fear” can be harnessed and used in a productive manner to fuel and drive us. Just remember not to have attachment to any specific outcome. As attachment is the source of all suffering.

That kind of went from real estate platform to Ted talk lol. One of my amazing adhd driven talents :)

@Tanner Webb Is your qualification based on single family purchase? I think a duplex in that price range would be difficult but not impossible necessarily. However, keep in mind that when you purchase a multi unit it increases your purchasing power. I’m general, you get 75% of the rents from the second unit towards your income/ qualifying. So if one side rents $1,000 you get $750 towards income. As a quick reference, I would say each $50 increases buying power by $10,000. So in this case $150,000

Which also means a $250 car payment decreases buying power about $50,000.

If your loan is FHA you would need to refinance to drop mortgage insurance. If you bought 2 years ago in the Salt Lake Valley I am fairly confident you can get it removed. Each loan company has different requirements to have it removed. However, typically you can just send in a BPO / Comparative Market Analysis and they remove it. I am happy to write one up for you if you would like.

You can contact your lender to see where to send it.  Occasionally they require their own bpo or you can send in an appraisal. But I would try the easiest route first. 

@Michael Kundrat

I think you are on the right track and it’s a great idea. Another idea might be to reach out to local property management companies and let them know you are in the market for a multi unit and that if they hear of anything that may be coming available to please reach out.

I would be open to all opportunities. I would still keep an eye on the MLS, call on properties that catch your eye when driving by, look up absentee owners.

You could also look up divorce records, properties for rent that a landlord may be open to selling, code violations, notice of defaults Etc. 

@Connor Steck

Congratulations on getting your license. As mentioned above, you will need 2 years tax returns that show enough income to qualify for your typical Fannie May/ Freddy Mac conforming home loan.

On a positive note, you can use your commission towards down payment. If you found a property off market, you could work in 6% give or take as commission to use towards down. In your current circumstances, the only logical option would be to get a cosigner. But even then, I personally would wait until you have a more stable and steady income. Unless perhaps your cosigner could househack with you. They would be more reliable at maintaining the home and payment than a tenant ever would be.

@Diego Garcia If you can prove income based on bank statements or taxes that may help. If your long term goal is to buy, you might want to consider less write offs over the next 2 years. I know it seems crazy to pay more taxes than necessary, however I think the return is well worth it. Especially if you intend to finance multiple properties as long term investments.

We have a few rentals coming available in the next few months in The Salt Lake Valley if you are interested we can chat.

@Daniel G.

I would personally do the cash out refinance now. I agree with the idea that rates will only be going up. I also believe that values will continue to rise and the sooner you can get in, the better.

I feel like real estate is a lot safer long term investment than most any other option out there.

If you plan to buy long term buy and hold a cash out is wiser than a HELOC in my opinion. If your plan was to flip your way there, I would suggest a HELOC you could draw and payoff as needed.

Some people believe that the market may slow as average income in the area catches up with housing. However my belief, is that locals and first time home buyers will just get pushed to areas just outside the Salt Lake Valley such as Utah, Davis and Tooele county.

@Jarrett Mel Williams

You could have a seller agree to seller finance a distressed property and close at the title company. You buy it for a good deal in the first place! If they want to cash out quickly you could do 6 month balloon. Use your $10,000 to fix up and force appreciation then refinance once you force 25% or whatever you are going for. Ultimately owning with just your $10,000 into it.

If you found a good enough deal I would think someone would do a hard money loan with little down and you could immediately refinance. Sometimes I get 100% loan and have title hold the down in escrow to protect hard money lender. Once I refinance into long term financing a month later the money being held is released back to me.

A hard money lender might consider putting a second lien on your primary residence for your “down payment” making sure you have skin in the game.