All Forum Posts by: Cydney Gray

Hey Arshiya,

I am so glad you guys are starting so early in life. If you ask any investor, they wish they did more and had a longer hold time for equity and cash flow with rent increases. 

What about having your first place be a buy and hold? You could buy it, fix it as you had the funds to do so and live in it. As you pay the mortgage payment on time. you'll be building really good credit.

There are many programs for first time home buyers for owner occupied properties. Some programs even have down payment assistance so you don't need to come in with that much money. 

A lot of investors get their start by buying owner occupied and renting it out when they are ready to move out. I know this isnt answering you question but it solves a lot of the things you are looking to accomplish. In addition, it will be at a much lower rate and lower fees than a HML.

What are your thoughts?

AND - full disclosure -  I am a lender and lend in in several states to Include CA. 

Aloha Erik! I live on Oahu and am a mil-spouse. I have been in lending for many years and would love the opportunity to connect with you. I'm always looking for like minded people to partner with! 

 Investigating the financing before finding the property makes for a smooth process. Knowing what you qualify for using income qualifying allows you to shop in a price range that works for your budget. 

If you're going debt service coverage ratio, knowing what the rents will be and an estimation of the mortgage payment based on your down payment, credit score and the rents received will also let you shop for something in your price range. 

Please dont decide you want to buy a property and then find out that you cant qualify for the financing or that the property doesn't debt service, it's a waste of your time and a little sad! 

Having the time to work the number before you write an offer make you more able to write a strong offer and know where you stand financially if you get a counter offer. 

The time pressure of being in negotiation to get under contract can force you to make emotional decisions instead of financial decisions.  

 :) 

Hi Irene! Your Realtor should be able to pull historical averages for the specific areas that you are interested in. The data is available through MLS listings looking at historical closed transactions. You can always snoop around on some of the well known real estate websites to look at historical data on each property you're interested in as well.

Hi Irene! I think units are the easiest way to house hack! In the middle of November a new loan program came out from Fannie Mae that requires only 5% down on 2-4 units. Make sure to compare the fees, payment and rates between FHA and Fannie Mae.

As Theresa Harris said, it is very difficult to have a property cash flow with only a small down payment. This makes looking at historical data on appreciation very important. 

Do some research on what the predicted appreciation is for 2024 and beyond in the areas you're looking. This could help you decided on exactly what are you think could be best to buy in. Also research where rents are the highest and if there are any multi unit properties available in those areas. 

Try to estimate how long you will live in the property. Generally speaking, the longer you live In it the easier it will be to have it cash flow when you move out. 

Sometimes the riches in real estate happen quickly but most of the time it is a longer haul to get to having both equity and cash flow. If you are willing to invest the money AND the time, I'm sure you'll reach your financial goals!

House Hack - If you're ready to buy a 2-4 unit property, you can now get 95% LTV financing on a primary residence that will bring in rental income!

For a $400,000 purchase, today's rate on a 2 unit is 6.499% / APR 6.852% on a 30 year fixed rate, no prepayment penalty. Maybe you can get an even lower rate with a Seller Concession? Ask me how.

Your payment including principle, interest, taxes, insurance and MI would be $2651.44.

Reply to this post for more info or if you have any questions about anything at all!

Hey Will! A HELOC would be on the whole property, so the main dwelling and the ADU. Generally, the best rate, terms and lowest fees are from locak banks and credit unions. Google HELOC with the name of your town and you'll see who lends in your area. You'll need to qualify using your income documents. If you are looking for a HELOC that you use deposits into your bank account instead of your paystubs and tax returns, let me know. I have that and I'll find someone in FL to help you out :)

Since both Real Estate Agents and Mortgage Brokers are paid commission, you could argue that both Real Estate Agents and Mortgage Brokers could give up their commission, and get the buyer a better price on the home or a better interest rate. 

An alternative point of view is that Real Estate Agent and Mortgage Brokers are willing to help buyers secure property for their dream of homeownership and/or to create wealth through investment property, and we are willing to work through the entire process with no pay at all. We make sure both the property and the financing is everything that the buyer wants, and then, after several months and only if it closes, do we get paid. 

Since Real Estate Agents and Mortgage Brokers get paid only commission, we MUST be good at what we do. The services we provide make or break a deal and please remember that we get paid nothing if it doesn't close. We work as hard as needed to find the best deals and the best financing with the best negotiations - for the benefit of the buyer. 

@Anthony Freeman Like what kind of conflict of interest?