All Forum Posts by: Christian M.

@Jerry Padilla yes i am 

Does anyone on here know of any mortgage brokers in the Boston are who offer the Fannie Mae 97% LTV loans?

Thank you everyone! I am really starting to like the idea of the 203K loan and building equity through improving the property. That seems to be the quickest and most cost efficient way to build equity quickly in order to refinance into a conventional and use another FHA loan.

@Blair F. debt to income ratio* whoops

Thanks @Blair F.. How long did you own your duplex before you refinanced out of an FHA loan? I was originally thinking about going that route but I read it can be difficult to refinance out of it after just 1 year. How much equity did you have in the home when you refinanced? No I have not spoke with a lender yet. I'm planning to buy my first property the beginning of next summer but I want to refine my strategy in the mean time. Also that you for pointing out the 2 year rental history for the debt to equity ratio. That isn't something I considered yet but something I will definitely have to look into.

Thanks for your reply @John Pauler. I haven't really looked into the 203K loans before but that does sound like a very viable option. I love the idea of having more equity and putting minimal money down. The less cash coming out of my pocket upfront the better... and I'm not necessarily opposed to rehabbing. My original idea was to use a conventional loan on the 2nd and 3rd because I have read that you can put as low as 5% down on an owner occupied home with a conventional loan. I just don't know if it is likely that a lender will allow me to put 5% down on the second and third properties or if they would require a larger down payment and if so I'm curious what percentage of the home price they would require for those properties. 

Hey guys,

I was curious about an investing strategy I plan to follow and was wondering if anyone on here has attempted this strategy and if you could let me know any flaws you find in my strategy. I am a 23 year old accountant looking to invest in the Boston area, which is a pretty expensive market. Since the prices are so high my plan is to build my portfolio through owner occupancy for the first few homes I invest in so that I can afford the down payments. My strategy is to put 3.5% down on an FHA loan on my first multi-family (mainly looking at 3 families). The goal is to cash flow $0 while owner occupying so that when I move out the unit I was living in is pure profit. After living in the first property for a year I plan to buy a second multi-family and owner occupy that as well so that I can put less down than a typical investment home. I want to follow this strategy and purchase 3 homes in three years and owner occupy each one for a year so that I don't have to put down 20-25%. I also want to make sure each home cash flows $0 or close to it while I am living there so that I can use the savings from not paying rent to save up for me next home. Being as young as I am I really don't mind moving around to new places in the city each year so I thought this would be a good way to put down as little $ as possible and take advantage of my willingness to move and explore new areas. I am not necessarily concerned with finding the cash flowing properties because I have been analyzing properties for a while in my area and have found multiple locations that would cash flow $0 and even positive cash flows while owner occupying the home. I am more concerned with the financing. What is the minimal down payment you guys think ill be able to make on my second and 3rd owner occupied investments? Keep in mind I have very good credit (high 700s). Please let me know any improvements you think I could make to my strategy and any bumbs in the road you think I may encounter. I haven't really seen many people trying to use this strategy which is why I feel there may be some flaws in it, or maybe people just aren't willing to move around for a few years as much as I am.

Thanks!

Christian