All Forum Posts by: Dan Garrigus

My guess the issue is you're going from a SFH to a MFH within the 100 mile radius guideline. I would ask your lender if you were to move 100 miles away if that would change the denied to approved.

This is not uncommon @Richard Qiao Is your current home a SFR? Why type of mortgage do you have on your current home? Will this new purchase in NH be over 100 land miles from your current home? Would you be moving for work? Conventional 5% down option is slated for Nov 18th, not sure when approvals and locking will begin to take place but that can be an option soon as well.

Hi @Sergio P Ramos the first question that comes to mind is, what is your scenario and purchase goals? Depending on what you’re working with and what you’re looking to do there might be a little wiggle room. Some lenders will be more aggressive than others. Let me know if you have any questions. 

Hey Griffin! You absolutely get into a MultiFamily Home and rent out the other unit(s) as STR. There's been a lot of great information posted already. The one thing I would add is make sure that the market that you decide to purchase in is 1. STR friendly and 2. Is a good market for STR. Some markets may end up being more valuable for LTRs. Here to help, ask away.

I have a family member who was pulling into their apartment complex in San Diego, CA which has a sensors to notify the swinging gate to open and when it is safe to close, which malfunctioned. As they were driving through, the gate all of sudden began to shut and hit their car denting and scratching up the front end. This happened just over 1 month ago and they are still waiting to get a response from the apartment complex's insurance company. The insurance company is stating they have reached out to the responsible party, the gate servicing company via tender letter and are awaiting their response. 

So, the question for the Tenant/Landlord Attorney's is:

Since this incident had occurred over a month ago, with no resolve. Can they skip next months rent and a portion of the following months rent to cover for the cost of the repairs if they decide to stop waiting and get it repaired? The initial quote has since expired as it was only good for 30 days. If not, what avenues do they have to resolve the issue as quickly as possible?

Thank you for your insight and have a great day!
 

Good morning @Fernanda Herrera! My 2¢ would be to stay away from that loan product for several reasons unless you plan on buying your actual DREAM home and staying out for a long time. Short term it sounds great, however, logistically and long term it’s not great at all. Here’s why: 

1. There are 2 prerequisites that must be done to close, 1 of which is a 1hr counseling session with 1 of the 5 Counselors tasked with handling this. As of March 31st the next available day was April 15th. Not good. 

2. Funds will only be reserved for those with a signed purchase agreement. So you can be “approved” for this program and never get a penny and fall out of contract because your Investor, aka, the State of California’s funds dried up.

3. High CLTV, 100% Financing but the real cost is yet to be determined due to the shared appreciation cost which can amount to 20%. Buyers/new owner would have to pray for rapid appreciation in order to take equity out to remodel the home, pay for kids education, start a business, etc. These buyers will be under for a while especially if life happens and need to sell such as for a job relocation, divorce or a death.

Can the Dream For All benefit some people? For sure, is it for most I don’t think it’s the best solution even though it sounds great. If you have any questions or would like to discuss further I am here to help. Have a great day Fernanda.  

 Sounds great, glad I could provide some insight @Matthew Valencia. Many lenders and agents are pushing this product without looking at the long-term effects. Have a great day!

Hi @Matthew Valencia I would be cautious using the Dream For All program to buy your first home to house hack if the ultimate goal is to continue buying homes as investment properties. Mind you the lender will not be able to factor in any income from the second unit to help you qualify to purchase. You’re better off using your money on the first as you will get to use equity in the home overtime to make your next purchase faster. Using Dream For All will most likely have a repayment of approximately 105% of the purchase price meaning it’s going to kill the opportunities to get out from under the program and begin building equity to use like most investors. Who is Dream For All good for, someone who finds their actual Dream Home and has zero plans to move in the next 10-15 years and does not care about appreciation and equity to remodel, paying for education, starting a business or concerned about life events such as job relocation, divorce or death. 

If you’re set on purchasing with the Dream For All, I would suggest buying this week. I know you said you were approved for the program but they are not holding the funds until you have an executed purchase agreement. The program will only be funding  roughly 2000 of the 330,000 CA home purchases this year. Thats 27,500 sold a month. Funds will go fast. Many buyers who have been quoted on this product will end up losing out but only finding out after they are in contract. 

My advice, use your own money to have the most options available to you when an opportunity arises. 

Would be happy to chat more, feel free to reach out. Have a great day Matthew. 

Hi @Josetti Rodriguez! If you're still in need of a Realtor who owns REI properties as well I can't recommend @Ken Maguire enough. He’s has properties here in SD as well as on the east coast and loves to help clients like yourself do the same.

If you are still looking to chat with a mortgage broker about your purchase to see what they can offer, Id be happy to hop on a call or Zoom with you to see what we can do to help you reach your goals. 

Have a great day. 😊

Hi @Rabekah Siatunuu. House hacking here in San Diego is a great tool to use to build equity, lower your cost of living and potentially purchase more home. Are you looking to rent out all units? Or are you looking to live in one unit? Either way it will be difficult to cash flow in the first year but if you're looking to do a true house hack where you're renting out an additional unit, the idea is to keep monthly housing expenses to a minimum. Nice thing is, if you have an ADU on the property you can factor in a portion of that income to help you qualify to purchase. If you're just renting rooms, we cannot take that income into account.

This is a great way to start investing in real estate. Let me know if you have any questions, i'd be happy to connect. Have a great Tuesday!