All Forum Posts by: Chris Rojas

That is annoying. It would be worth shopping around for another bank. I would think some others wouldn't be strict on such a requirement. If it's a new regulation for big lenders, maybe try some local community banks.

If not you could get creative. Maybe lease a mid term rental and rent out your unit, then look to buy another place. Or, if you're single, stay with a friend for a month or two if they're open for that.

Thanks Andrew definitely a few things to consider except that I cant move in with any family members as my wife would kill me hahaha

1 Vote

Newark, New Jersey

Quote from @Mike Levene:

Hi @Chris Rojas

I started exactly the same way (with a triplex not a duplex but not important).

First, congratulations it sounds like your first deal is going well and is hitting your targets for cash flow, renovation timing, and hopefully budget.

When looking to buy your second property, there are of course synergies to use the same local bank, however, there is nothing that requires you to use the same bank. You will likely find that some banks are much more favorable to lending to primary homeowners, while some may lean towards investors.

It sounds like your current bank might be hesitant to provide a loan for the next property until you can prove that the current property provides enough income to support your overall DTI (Debt to Income Ratio). The easiest way to prove this is to have a lease in place with a tenant. You mentioned you seem to think this is a new regulation across big lenders, but aren't you working with a local bank?

Have you spoken to multiple banks and loan officers about your situation. I think it is a very broad statement to say it is riskier and harder to get approved for a triplex vs. a duplex. Ultimately, it comes down to underwriting and the ability for the property, and you, to afford to pay the monthly expense of the loan.

If I were in your shoes (which I was recently, and will be again when I move to the next property), I would call up 10 different lenders including small banks, credit unions, etc. and tell them your situation, what you are trying to do, and how they might be able to provide a product to support you.

Lastly, you mentioned this is a BRRRR but you plan to cash flow "like crazy" after renting it. If it truly is a BRRRR you would plan to refinance the property to pull out some capital, and then likely use that for your next deal. Totally ok if you don't plan to take any capital out as interest rates are likely higher than your original loan, and it sounds like the deal will cash flow, but just wanted to point that out so you are speaking the same language.

Hey Mike great to hear and sounds you're killing it! Yeah these are great pointers thank you for that! Punching myself for not thinking about calling more lenders. I guess I could have phrased the BRRRR thing differently. Im using a HELOC to finance the down payment.

0 Votes

Newark, New Jersey

Hey everyone!

For the past 10 months, I've been doing a BRRRR house hack with my multifamily, running a mid-term rental on the second floor.

I’m looking to scale up soon as I’m wrapping up the last few renovations in my unit and will be handing the keys to a lucky tenant (MTR or LTR). Either way, the property will cash flow like crazy once my unit is rented.

I have enough capital to get into a bigger property with low money down and am seriously considering a triplex or fourplex for the next one.

Here’s the issue: My lender (local bank) says I need to be fully moved out and have a lease in place before they’ll proceed with my loan. Apparently, this is a new regulation being enforced across big lenders. Even if I wanted another duplex, this still applies. Crazy.

On top of that, moving down the ladder (duplex → triplex, triplex → fourplex, etc.) is seen as riskier and harder to get approved for. Makes sense, but still frustrating.

How should I handle the move-out part and make my application strong enough to convince the lender?

Would love to hear any advice or experiences!

Thanks, everyone!

0 Votes

Newark, New Jersey

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Corpus Christi.

Purchase price: $440,000

House Hack BRRRR Project

1 Vote

All Forum Posts by: Chris Rojas

Chris Rojas has started 2 posts and replied 4 times.

Post: House hack. Scaling up and its blockers

Post: House hack. Scaling up and its blockers

Post: House hack. Scaling up and its blockers

Post: Investment property 1