All Forum Posts by: Heath Thomas Jr

Great deal! What are you renting it for? I could back into the number, but it is Friday and I have done enough math for the week.

@Brian Silvia congrats on committing to invest in real estate. I am local and would be happy to chat if you have questions on investing in the area.

Ah ok. Yes, reducing the unit count would impact the loan limit. However, some lenders are already raising loan limits in anticipation of changes by the FHFA for 2022 which could help. Otherwise, a hard money lender might be your best bet.

You could do an FHA 203k loan. This lumps in the renovation costs as well. There are some additional hoops to jump through like getting a HUD consultant, but it will probably be the cheapest way if you intend to live in the property for a year. You could also find a hard money loan. This would have less hoops to jump through but you will probably need to put more money into the deal and it will cost more.

@Miranda Mayuiers To echo what Ozzy said, depending on how long you have owned your current home and the current ownership structure, you could maybe buy as a primary residence. If you buy a single-family, it could also possibly qualify as a second home which would also have a lower down payment.

Congrats on getting started. I love that you are motivated to give back! That is something I am constantly trying to do too. I would be happy to connect if you ever want to chat.

@Balo Mutho I know someone who may be able to help. PM me if you want to discuss more.

Hey @Bryan Findlay, it depends on how comfortable you are with the cash flow under that scenario. That new payment does not leave much room for unexpected expenses, but assuming you did a renovation you may be expecting minimal repairs. So, based on your risk tolerance/reserves you have in case there is a shortfall for a month+, you should be able to get an idea of how much you should take out.

Another consideration is how much you would need for a down payment/repairs/reserves. If most of the properties only need like $50k out of pocket total, it may make more sense to cashout refi a little less to give you more buffer on a monthly basis. You will also pay a bigger premium to take out 75% LTV vs 60% or 65% because of the Fannie/Freddie pricing for investment properties.

There are a number of things to consider so it is helpful to run a couple scenarios to understand how things would shake out. 

@Valerie Lane I don’t have experience combining those strategies but you could possibly refi with a conventional lender and do a renovation loan. It’ll be a couple extra steps vs using hard money but it will probably be significantly cheaper.

@Eric Carter you could also try convincing an investor to partner with you. If you can understand what types of properties an investor is looking for you could offer waiving your realtor commission and sweat equity so you can get experience and/or build cash to purchase your own.