All Forum Posts by: David Dye

@Amir B.

Not sure what you mean by safe, but yes, I believe they are good because they act as your agent to get you the best rate and terms. Just sent you a colleague request. 

-David

@Amir B.

There are a lot of factors that go into this and it is hard for me to give you advice based on the information provided. Especially with investors, there are a lot of little things that must be considered.  I suggest you find a broker who can shop the rate around to 'wholesale lenders' and find you the best rate and terms.  

-David

@Kaylyn T.

Has your income with the 1099's and the w2 been fairly consistent over the past 2-3 years and in the same line of work?  The problem with big banks is that they have what are called overlays.  Basically, there are several requirements that are set forward for all conforming lenders.  However, the big banks put on their own requirements.  These requirements are often extremely strict and unless you fit in their little box, they will deny you.

I am a little biased... But I suggest you find a mortgage broker as they(we) can get around many of these overlays with their 'wholesale lenders' and often with cheaper rates.

Hope this helps!

-David

@Mario F.

One factor is the area you are looking at.  Some areas here in LA County are still neutral/buyer's markets while others are pretty hot seller's markets.  I am a buy and hold type of person myself and it has treated me well.  

With buy and holds, I believe that it all comes down to your financials as a whole.  With your first property, you need to make sure that you are able to cover the note even if there is no rent coming in and no appreciation (and still be able to live comfortably yourself!).  If you had a large portfolio, you can be more aggressive because you have many other properties that can pitch in if you have a vacancy.

Cheers!
David

@Kaylyn T. 

I would do the appraisal because it is going to be more accurate (and it sounds like much higher).  It is totally worth the $500-ish dollars.  Especially with where rates are at this time, it is totally worth it IMO.  What kind of loan are they trying to give you where you only get 20%?!  You can totally get up to 70% with tons of lenders... (if that is your goal)

@Dana Regan

I suggest you be very cautious with these individual lenders... There are countless scams out there (especially on facebook...) and these guys have ripped off several BP members. This was posted on BP a few weeks ago and is worth a read: https://www.biggerpockets.com/scam

Hope this helps!

-David

@Jamie Garcia I echo what the others say in terms of house hacking.  Never undervalue the fact that someone else will be helping you pay down that note month by month.  However, be sure to have a solid plan with managing your tenant next door.  There is a whole different dynamic when your landlord lives next door...

I would look into a duplex, while you can get up to a four-plex with FHA, go for quality over quantity. The fact that you can qualify for $550k alone is pretty good in this market. Not sure how much you will qualify for together with your soon to be wife but from the looks of it, you are in a good position. Also, be sure to look at all of your options in regards to financing. FHA may not be the only option for your situation and there may be a low down payment conventional program that is more profitable in the long run for you. Not knowing your exact situation, it is hard for me to suggest one at this point.

Hope this helps a little! :)

Would love to connect with you!

@Nader Tashakor

Do you have a steady income where you could use that 100k as a down payment on a property or are you looking for an all cash deal?  That will make a big difference.

-David

My appeal is the building of equity through rentals...  Not only are you cash flowing each month... But you are also letting the tenants pay for you to eventually own that piece of property.  Now it is up to you to decide if you want to keep leveraging that out to cash flow more or work towards owning the property outright.

@Manson C. It sounds like you have at least two years experience in rentals. You could use a specialty rental program to cash out. If you want, shoot me a message and I can give you some information for a program through a national lender. They don't limit you because of your DTI and go up to 30yr fixed.

Cheers!
David