All Forum Posts by: Gregory Sabers

Hey @Ahamed AM Ali,

I came from the Bay Area and chose Carmichael, and my mistake was not looking into the smaller cities in between those you mentioned. Places like Loomis and Granite Bay. If I were new to the area I would take a long look at Granite Bay. It has some of the best schools and is tucked away and centrally located. Doing it all over again, I would take Granite Bay or Roseville. 

Feel free to reach out for a second opinion on your financing options! Whether you use me or someone else, I would definitely recommend you use a mortgage broker over any retail lender, you will have much more flexibility and access to better programs and rates. Good luck!

Hi @Alexia Healy,

It's great that you are reaching out for more information and advice prior to making this decision! I try to answer questions by thinking of what I would do in the situation, and in this case, I have to agree with the other responses here. I dont think it can be overstated how powerful the house hack strategy is for your first property (and second, and third...)!

From the finance perspective, just by going for a primary residence, you are able to secure better rates, a larger loan, less down payment etc. Its a much lower risk strategy as well since its not an expense in addition to your rent like an investment property purchase would be. You can live in the property just a year or two and then move on to the next, but you get to hold onto the property with the primary financing still intact.

I could go on and on about the benefits, but there are plenty of resources on BP for in depth analysis of house-hacking. I'll just end by reiterating that its the best choice by a long shot, and please feel free to reach out if you have any financial strategy questions! Good luck!

Hey Andrew, welcome to the BP community! I'm a local mortgage broker in Roseville, and I live in Carmichael. The most recent property we bought as a live-in rehab and will rent it out and move to a new property soon and keep it going. I'd be happy to connect and help out in any way I can with financing advise and/or real estate connections. Feel free to message me so we can connect. Thanks!

Hey @Pat Luc, it sounds like you have a great plan going. As a local Mortgage Broker, I can speak to some of the financing concerns with ADUs. The main thing to consider is if you are going after conventional financing such as Fannie/Freddie, FHA, or VA, you will be limited to only 1 ADU on a property. they do not allow for 2+ ADUs. In order to finance 2+ ADUs on a single property, you would have to look at alternative financing options like Non-QM/Hard Money.

Please reach out to me and we can discuss your financing strategy further and I can get you a second opinion on interest rates as well

Thanks Pat!

Hey @Andrew Pagan, We are a local mortgage brokerage in Roseville, but work with clients throughout CA. Please reach out when you get a chance and I can get you a second opinion on your financing strategy! I'm happy to help anytime.

@John Lindley welcome to the area! There are lots of great resources on here for Sacramento. We are a local Mortgage Broker, so please reach out for agent recommendations, and let me know if you'd like any help with your financing. I'd be happy to take a look and give you a second opinion at the very least if you're already working with another lender.

For the origination, is it 1.9% in discount points, or is that actually the compensation to the lender? The other item that stands out to me the most is the prepaids/escrows you mentioned for taxes and insurance. $8700 is very high for a $235k home. 

@Tony Mbuthia I would be happy to go through your situation and get you a specific quote.

With 5% down you will have a lot of the best options available to you. Rates have been like a roller coaster lately, so only quotes from today (preferably within the last couple hours) are really valid to be honest. We watch rates on an hourly basis because of the volatility lately.

For rates this morning, assuming a perfect conventional scenario with 5% down payment, I could do 5.25%. We use software to find the best lender at the very moment we get quotes, and no one can do 5.125% right now.

If you're a veteran, we could look at VA, and the rates would be substantially less. FHA might make more sense depending on where your Credit Score is right now.

Please feel free to message me and we can connect.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $725,000
Cash invested: $725,000

Bought a cabin in Tahoe at auction at the Placer county courthouse. Foreclosure situation. Appraised at $900k in current condition immediately after purchase. Refinancing now to take the cash out and rehab the property for short-to-medium-term rental, or possibly a flip over the next 9 months.

Yes, Shawn is referring to 401k to satisfy the reserves requirement. For a down payment, withdrawing from your 401k wouldn't be ideal in most cases.