All Forum Posts by: Erica Larence-Penna

@Abby G. Welcome!  I am also in New England.  While I haven't invested in NJ, I think in general, I'd suggest just be patient.  It took us nearly six months and ten offers to finally get our first deal.  We've been looking for our next deal and it's been tough finding anything that meets are criteria that we haven't been outbid on.  The right one will come along!  We started looking in Columbus, OH because we've heard good things.  Feel free to reach out if you ever want to chat!

@John Matthew Johnston different lenders may have different restrictions.  You can reach out to a couple and ask if they're able to do multiple at once.  Feel free to reach out if you need a referral!

@Andrew Melvil at least one borrower on the loan has to live there.  If your family member is also a borrower, that is okay.

@Richard LoRicco I'm also a CT-licensed attorney (also licensed in RI, MA, and FL).  I'd love to network if you're open to having a Zoom call!  Feel free to PM me.

@Keegan Darby it is!  We were all ready to buy our second property through that 10% down loan, but then they suspended it.  If I find out that this lender is able to do the 10% down again, I will send you their info!

We've presented a couple of seller financing options to sellers as well, but no bites yet.  We do have a partner who is able to be the bank for us and finance the deal, so we're looking for deals right now that would work with his criteria.

@Gage Downey one little caveat we did find for a second loan was that with an FHA loan, you can technically have two in your name, but the properties need to be more than 100 miles away from each other (there may be more to it, but that's a question for a lender). It may also be easier to get the second loan in a short period by doing a flip and using a hard or private money lender.

We were renovating one of our units before COVID, but everything was delayed due to COVID (cabinets and other supplies were delayed about a month, which held everything up), so we haven't been able to rent that unit out.  We could rent that unit out for between $900-$1,000.  The rest of our three units are rented and everyone has paid rent.  Could we apply for the lost rents that we could have gotten from that one unit?

@Gage Downey I highly suggest speaking to a lender to see what your options may be.  I work with some lenders in TN, so I'd be happy to connect you with someone.

Most lenders aren't going to lend less than 20% down on an investment property (I work with a couple who do), but if you are using it as your primary residence, you may be able to use an FHA loan and do 3.5% down. My fiancee and I purchased four-unit with a 3.5% down FHA loan; three units are rented out and we actually net about $200/month right now. I am actually an attorney and a couple of banks have "professional" mortgage programs that they offer attorneys, CPAs, doctors, dentists, engineers, etc. These loans have no/low down payment options and no PMI. So depending on your career or your girlfriend's career, there are specialty programs out there as well. We are in the process of purchasing our second house using one of these loans.

In terms of getting another loan in a short period of time, I would suggest having the mortgage for the first house in your name only and then on the next one, have it in your girlfriend's name.  You could also find another person to partner with on deals who may be willing to finance them.

Personally, I like the BRRRR or buy and hold strategies, but flipping is a great way to raise capital. If your goal is to eventually leave your 9-5/retire early, rental properties are going to give you the cash flow you'll need in order to do that. Everyone is different though, so it really just depends on what you prefer.

@Keegan Darby pre-COVID, I worked with one lender that could do 10% down on investment properties.  Unfortunately, they have suspended that loan.  I've been hounding them asking when they are going to roll it out again.  I know of one other lender who can do 15% down on a single family home, but not multis.

@Kevin Reid I think I may need to refocus on the Ohio area!  We've been looking for multi-families and SHF in FL for some time now and it's hard to find anything that will work.  I'm curious as well if anyone has had any luck finding deals in this price range that are in decent areas.