All Forum Posts by: Erick Sembrano

@Josue Velney That is amazing! Super impressed with this! I know I'm not very good with asking the right questions many times, so need to get more experience and learn : ). So if you don't mind me asking, which bank did you use? Also how were you able to get them to do a 5% down without PMI?

@Douglas Snook I will be using a conventional loan for this property. So I ended up having an agent represent me on this one and yes, an attorney for sure. I guess if you do an off market deal and the transaction is just between you and the seller, you both want to have an attorney to review the contract and do the due diligence on the tittle, etc? If this is the case, do you need anyone else? I guess the lender or where the money is coming from. 

@Jonathan Greene That's a good point, yes they do have an agent and even though it's an expired listing, we were told they are planning to list it again this January. I guess we just got in early and got the first chance to see it and make an offer before anyone else. Thank you!

@Ashley Cross Good to know! That's a bummer for those wanting to house hack with low DP. I hope that loan program does come back in the future as it is very helpful! 

@Josue Velney It's always nice to hear from a fellow investor in the area! I should do that and reach out to local banks around here. How much did the local community bank cover the purchase of your property? And happy to hear about the equity gain of 250K! That's awesome, congratulations!

@Andy Rousch I should think about pulling money out of my current triplex that I live in. Did you use a HELOC or did you do a cash out refi to get money out? Thanks again!

Thanks @Suresh Kannan! Wishing you the best and a successful 2022! 

Thank you for all your replies and it did made me think of other things to make this possible.

@Joshua Janus and @Marc Rice Thank you for the responses. As far as I understand when I bought my first 3 unit owner occupied loan, it was a straight up conventional loan. It was a 820k purchase price and the lender would only lend 750k of that so I ended up putting 70k (~7%) as my downpayment. It may be the same as the "Homepossible Loan"...could be, this is actually the first time I've heard of it, cool! I will have to look around and talk to several other lenders I think and see if they will say the same thing or one of them will have a separate solution of the situation. Thank you again!

@Kim M. Hi Kim! I still live on our 3 family and plan to keep it for a long time unless an opportunity comes up that it makes sense to sell and then to reinvest. That's a good suggestion to look into a HELOC. I do have an agent and will ask him for more suggestions. Let me know if you have anyone that I should reach out that my possibly help look for a better lending solution? Also, glad to hear from someone around here in Boston!

@Andy Rousch Thank you! I think I can pull money from some other areas for the 15% downpayment. But I like how you think, haven't thought about refinancing a conventional to an FHA! Have you done this before?

My wife and I are currently looking for our next house hack and searching for a 2 family in the Greater Boston Area and surrounding cities north of Boston, Massachusetts. Previously when we bought our first owner occupied 3 family, we were able to get a conventional loan Low down payment. It was supposed to be 5% DP but the lended has a cap for me at that time on how much we can lend so ended up putting in more cash for the down payment around 7% so still ended up pretty good.  

Currently, the lenders I've reached out to are either recommending to get an FHA for low down payment vs paying 15% down payment for conventional loan. Our FHA offers have not been getting any success and seems like some sellers don't like to deal with it likely due to some potential issues with the property per FHA guidelines (eg paint chipping, etc).

Wondering if the anyone knows if the low downpayment for conventional loan still exists or rules have changed and it's essentially nonexistent at this time. Would also appreciate any recommendations if any knows any lender that can offer this low down payment conventional loan for owner occupied small multifamily. 

Thank you guys! 

@Jason Regan I appreciate your reply, thoughts and opinion on this. It makes sense and as a newer investor I really should have a team with me and includes an agent to cover my blind spots and have another person that are more experienced that me in many ways to go through the process. Thanks and hope to meet you at one of the meet ups around here! 

@Bud Gaffney thanks for chiming in as well! Appreciate it. 

Thank you for the input @Account Closed. What you said makes sense and it will be to my advantage and safety to have a buyers agent on my side. You made really good points and although seems obvious, I needed to hear it from someone else to tell me about those things. I appreciate your reply! Hope you are well and starting off to a good week!

@Suresh Kannan I like your goal! Keep at it and good luck! : ) 

My goal for 2022 is to buy a house hack property early in the year, a 6+ MF property in Central Mass mid-year, and a STR by the end of the year. Although will keep an eye out if we come across a partnership opportunity to own a part of a bigger MF portfolio.