All Forum Posts by: Grant Schroeder

@Kenneth Burdick you will want the funds to sit on inh your checking/savings as Mike said for 2 months and "season" the money for underwriting. Then you can jump on a deal at that time.

@Martin Ruiz or look at mortgage only company or mortgage broker, lots of solutions there! Please do not hesitate to send more questions my way on your MFH purchase.

@Brad Gibson have you looked at a Debt Service Coversge Ratio (DSCR) Loan? This would simplify things and keep you from needing to provide documentation beyond asset documentation for reserves since the loan is based solely on the property similar to a commercial loan. All that is needed from your personal financials is your credit and asset statements for reserves on just the property you are purchasing. Beyond that, a property appraisal is all that's needed. Let me know if you have questions on this or want to explore the possibilities with this loan!

@Kristofer Ramos thanks for posting! You are best off going with a mortgage only company and not a big bank or CU. The level of expertise you will get at a mortgage only company is much better since they specialize in just mortgages. It is also important to find a loan officer who understands house hacking and has potentially done it themself. I sent you a connection request as well. Please feel free to ask any questions!

Hey @Brock Jenkins, I’d be glad to connect. I sent you a message with my contact info. Please feel free to shoot me a text or call when you have a chance this week. Looking forward to it!

@Brock Jenkins As @Don Spafford pointed out, it is best to get into the condo early as an investment property. The HOA will have limits on STRs and the % of traditional rentals allowed. Typically HOAs do not allow STRs. Fannie Mae has no limits on how many investment loans in a condo complex, they just have the below guidelines about a Single Entity owning a certain numbers/% of condos in a complex:

A project meets the definition of single-entity ownership when a single entity (the same individual, investor group, partnership, or corporation) owns more than the following total number of units in the project:

• projects with 5 to 20 units – 2 units
• projects with 21 or more units – 20%

@Ryan Kulver A good lender would be able to turn your CA cash out refi in 20-25 days. Appraisals in CA are faster than anywhere else in the country and are turned around by appraisers in 5-7 business days. Appraisal turns of 2.5-3 weeks are the primary hold up with refinances elsewhere right now. If you give the lender all the requested documentation upfront, you should not have any issues closing quickly and moving through underwriting. If you are okay waiting 25 days to lock in good long term financing on a conventional loan instead of paying points and high interest on HML, those 25 days are definitely going to save you money in the long run.

Welcome @Bruce Banner! You can put as little as 3% down on a conventional loan as a first time homebuyer on an SFR to allow you to rent out rooms. Your other alternative as @Charles Renn mentioned is to put 3.5% down on a 2-4 unit property. If you are okay putting 15% down on a conventional loan, this would allow you to purchase a 2 unit as a primary residence. It just depends on how much you would like to put down and what your comfort level is. House hacking is definitely the best way to get started in REI. I house hacked my first 3 homes in the first 3.5 years and have helped others start their REI journey the same way. Please let me know if you have further questions about this approach!

No worries @Julian Pacheco! I like your plan of attack. Way better to build equity in your own home than rent for $1,000. Let me know if you have any VA loan specific questions as you are running the numbers and getting ready for being preapproved.

@Julian Pacheco sorry I did not see your reply yesterday as I only get notified if you tag me. Those are definitely the numbers you should be looking at. What do you plan to or think you can rent the 3 other bedrooms for while you live there?