All Forum Posts by: Hossam Elaskalani

@Michael Glist

The HOA point is a great one to bring up thank you, just to confirm what you're saying in respect to the topic. If I go conventional and I don't decide to owner occupy one then rent the rest, then the qualifications for an investment property become even tighter when applying for conventional?

Thanks

@Daniel Hennek

Yeah I’m a little familiar with the spreadsheet but I definitely will familiarize myself with that more before acting on mortgages.

Thank you again!

@Daniel Hennek

Okay, I see the point now thank you! So for someone like me (new never done before, good credit, etc.) I should probably consider conventional methods before jumping to non-QM?

Thanks again!

@Stephanie P.

Thank you for the warning, in your experience when do investors use non-QM as oppose to conventional then?

@Daniel Hennek

Thank you for running preliminary numbers on two scenarios and showing me that perspective. I think something is fishy about this deal but what do you mean along the lines of a second home?

@Chris Mason

Thank you, I’m definitely going to contact other mortgage brokers and see what they have to offer, but can you give me an idea as to any red flags that indicate I’m going to be led into a bait and switch funny business sort of deal? Sorry if these flags may be common sense, still learning!

@Chris Mason

So would you suggest staying conventional? Forgive my ignorance but I’m assuming you’re saying non-QM lenders are a headache and a half?

Hello, I am in the process of getting a pre-approval before I start my hunt for my first rental property. My mortgage broker is pushing the idea of a non-QM lender being the one who funds this deal. My broker says I can be looking at 10% down and ~5% interest fixed for 30 years. 

My question is this, I am very new to this (first time) and I want to make sure that I don't end up with such a high mortgage that I run too close to 0 on net cashflow. I have ~40k to spend total on down payment, closing costs, rehab, etc. I want to use this 40k to buy 2 condo properties to rent out. That being said, if I go conventional (20% down, 30 yr fixed etc.) that means I will not be able to buy 2 properties with my 40k, but I feel like there is benefit that I am not seeing.

This leads me to my overall question: What is your experience using non-QM lenders, and your advice for me?

P.S. I am located in Massachusetts

Thank you in advance!

If you could go back in time to when you first started real estate investing, what is one (or more!) piece of advice you’d tell yourself?

Thank you for the advice. I'll be sure to check those out as well!