All Forum Posts by: Israel Wolterding

Its hard some times......like i cant get into American Homes for rent. they wont call me back......you just gotta keep networking and emailing any link that you can find

FHA househack works but, ask your lender if it is realistic for your market. The FHA has something called a "self-sufficiency test" that is now killing many deals in my market. The main reason is that the prices on 3-4 units have gone up so much that it will not pass the test since the rents cannot support FHA's definition of "self-sufficiency". Ask the lender about this, if they say they never heard of it - find one that does because I have seen many deals here in the forums fall through due to this and also many of my househack investors have had to stop looking at Triplex and Quadplex and just do duplex since the rule doesn't apply to those. Do your due diligence on this and find a lender and agent familiar with househacking in your area so they can let you know if this could be an issue before you go into contract and spend all the time and money on inspections and appraisals. (BP Agent Finder is a good place to start).

That said - November 18th, The conventional loan downpayment on 2-4 unit properties will drop to 5% down with NO SELF-SUFFICIENCY test. This product might be a better option especially since you can drop the PMI at 20% equity. With FHA it stays on the loan forever.

I wish you best of luck.  I househack myself and run a househack-focused real estate agent business and truly believe that it is the best way to get started!  Just make sure to do your market research to save that $$$.

 I appreciate your kind words my dude. Keep the questions coming, I will always try to answer them not based on opinion but absolute data and facts.

@Israel Wolterding If this is your first property, look into Down Payment Assistance programs for your state. That can help with getting into a property. 

https://www.hud.gov/states/massachusetts/homeownership/buyin...

Just something to keep in mind. Right before we started this company before the last crash, I was a bank executive that was handling the banks "Special Assets" (non-performing loans). My phone would ring off the hook all day long with people trying to make my dreams come through by buying our non-performing loans for 30 cents on the dollar. They all were convinced that they were the only person calling me. In reality, I was getting several calls an hour by people that had taken some guru's (that didn't know the first thing about non-performing loans or lending by the way) course in a hotel one weekend. Keep in mind that you aren't the only one calling them...they are inundated and now they are desensitized to the calls. Yes...they are ducking you. The reason we were successful is that we already had relationships. Many of the banks we were buying from were led by my old banking buddies. Instead of the normal call, I would call and say "Dude! Let's get a beer!". The traditional way won't work any more because every Tom, Dick, and Harry is doing it. The key is to have "an in". It's not what you know, it's who you know. You seem like a resourceful guy. I'm sure you'll find an in. 

Its hard some times......like i cant get into American Homes for rent. they wont call me back......you just gotta keep networking and emailing any link that you can find

I concur,

The deal is more important the rate. For the long term, I'd recommend a fix rate.

Find yourself a good lender who will provide options for the property.

Talk to a lot of mortgage brokers. As mentioned FHA is a popular option. There are sometimes low % down conventional for owner occupied. If by chance you are a veteran use a VA loan. If it is in a more rural area there are USDA loans. The interest rate will not be as important as the quality and location of the STR listing. Make sure you know the area demand and the competition and you could end up living for free and having other people pay your debt off.

If a house hack is the way you want to go, look at an FHA loan. This will allow you to use high leverage while buying your first house. You should check the House Hacking forum to learn about this strategy.