Originally posted by @Jiri B.:
@Michael Gustavo What brings you to Raleigh? Are you planning on moving here or just having out of state investments?
Probably the the best option for you might be to find a local small banks or credit unions. Typically you can just get a list from google and call them to see what type of loans / financing they might have for you. Its really easy to do. There are many new loan programs so the best advice you can get is directly from them. I would recommend avoiding any larger institution banks.
If you are planing on purchasing under LLC, then keep in mind, you will have harder time finding a lender for that. Many new investors purchase their first property under their names using conventional loans. But that just something to keep in mind, depending on you specific needs.
The maximum LTV banks typically do for investment properties 75% so keep that in mind when trying to figure out what you can afford. It means a decent amount of cash that most new investors get really surprised about.
As @Andrew Kerr mentioned, you can also look into house hacking using FHA or VA loans if you plan on living here in Raleigh. You will be required to live in the property as your primary residence for at least 1 year and then 2 out of 5 years to avoid paying capital gains.
And as always, make sure you understand the local market well and have realistic expectations!
Great points Jiri, thank you, that LTV ratio will definitely set me back a bit, I don't think I'll be doing an LLC just yet, this will be my first property and I am strictly and out of state investor. With that said, I wasn't aware that if I use an LLC I wouldn't be able to get a conventional loan, shows how little I know but that also changes things, appreciate the help.
