All Forum Posts by: Danny Sanchez

Hi everyone! I've been saving up for my first property purchase, specifically aiming for a duplex. This summer is when I hope to purchase. I've been doing some research for a while, but I'd really appreciate advice from people who are already house hacking. After buying the duplex, how much money should I have set aside? Let's say the duplex costs $240,000, and it's in a decent neighborhood, but it's not in perfect shape, maybe around a C+ shape. (assuming because that's what that price would most likely get you) How much extra cash would you recommend having on hand AFTER buying the duplex? What should one be ready for and what is something to have in mind?

5 Votes

Would love that. Reach out via DM.

0 Votes

Minneapolis, Minnesota

Quote from @Jeff Schemmel:

@Danny Sanchez I had a client close last month who paid $1,200 cash to own his $300k home. He used DPA, and he essentially has a small 2nd mortgage covering the cash he couldn't bring to the table. My personal opinion is that it should be avoided unless the DPA is a "grant" and not a 2nd mortgage which is much rarer and harder to get.

Here are the main thoughts I speak to clients about
1.) You likely have to live there longer and/or plan to use it as a rental property (assuming the revenue is high enough) because you're starting at zero equity. You literally CAN'T sell for at least 3-5 years because you wouldn't have enough to pay the fees associated with selling a conventional way, nor would it have been worth it for you to do so. For that reason, you should love the location you buy in. I have seen this get ugly for people who end up being forced to move/sell and take a deep loss or struggle to FSBO because they can't pay commissions.

2.) You may end up paying a higher interest rate on a higher payment. That's just how it works when you can't put skin in the game so to speak.

Hi Jeff,

Thank you for the reply. All this is good information and great to have in mind. What I want to avoid is staying stuck and not being able to move because of DPA. My goal is to get a deal where most of my mortgage is paid by tenants and I am able to pay off the DPA back within a year so I can move and get another house hack (sounds simple but I know it will not be like that). When you say the DPA grants are harder and rarer to find, why is that and where am I able to find something like that and how does it work?

0 Votes

Minneapolis, Minnesota

Hello everyone,

I want to hear everyones opinions on using downpayment assistance programs for a multi family investment. I know that nothing is free, and that some programs require you to pay the DPA loan back before you move out but what else is there to have in mind that I should know about. What is something you don't recommend or do recommend?

4 Votes

Minneapolis, Minnesota

All Forum Posts by: Danny Sanchez

Danny Sanchez has started 2 posts and replied 4 times.

Post: Advice on how much cash to have on hand for House Hacking

Post: Down Payment Assistance on Multi Family Property

Post: Down Payment Assistance on Multi Family Property

Post: Down Payment Assistance on Multi Family Property