All Forum Posts by: Jake Mires

thank you guys! Credit score is 790, got some cash put away, just stupid banks, Chris Mason, do you have a link to your hard money lender??

@Makenzi Kurvits-Statum You can totally get an FHA loan and do this, a few things to consider though:

- Often you have to live in the property for a year or so before renting it out.

- Inspections can be rough, they will not let you buy anything that isn't semi turn key for an FHA.

- Look into 203k loans, it basically builds your rehab budget on an FHA property into the loan price, so if you buy a home that is 200k, and want 30k to rehab, you pay 3.5% of 230k. This can be very helpful for a new investor.

-Consider this. Interest rates are low, with an FHA you have to have PMI, theres no way around it. and the lowest interest rate they will give you is 4.75% that it, cut and dry. Those are expenses that a new investor doesn't want because that cuts into your cash flow majorly, in some areas. Consider putting 5% on a conventional loan. Call a few banks and talk to them, generally for a new home owner you can do this. This gets you around not only the PMI and the interest rate, it gives you a little more equity in the property, AND you can rent it when you want. Looking at the numbers, at closing on a 300k home, closing costs (estimated) were about $17,500 with a mortgage of around $1,800. Conventional at 300k was (estimated) at $19,000 for closing, and a mortgage of $1580. Just things to consider!

(I am not a lawyer or mortgage broker, just giving you information based on my experience and research)

@Trent Vogelgesang You can easily get around a 12mo teasing period. Just call around, the key is not to use Chase, Wells Fargo, banks that deal with Fan and Fred, because they set their guidelines and there isn't much wiggle room there. If you go to a small local bank, you can explain your situation, and strike a deal with them, I've seen cash out refi done with 85% LTV, sometimes in 4 months. Regardless of what some people say or think, they're out there, you just aren't looking hard enough. Just talk with your lender. Also, another thing to consider is an appraiser is human, sometimes they can't really justify a big jump in value in a short amount of time, regardless what the house is, in their mind, they might subliminally ding you a bit, because it just appraised much lower, and especially after 2007-09, appraisers have their back to watch, appraisers were going crazy at that time doing exactly this, so sometimes it pays to wait a little while just for that reason as well.

Very interesting! Thank you @Chris Parrish!

Couldn't you simply tell the bank you were moving into the property, and then just... Not? Assuming I lived in that area. And if it would be my second home, could I move out of a current home, and buy another with 5% down, if I was living in it? Or do they require 25% reguardless if you live in it, if it's your second property?

I am currently going through the process of trying to get pre approved for a loan on an investment property in California. I live in Portland, OR, I've talked to a few people who are saying that the minimum I can put down is 10-25% for an investment property. It'll be my first home. There has to be a way I can get away with 5% down on the property. Is this a matter of finding the right lender? Or is this really unheard of for a bank to loan on an investment property. I'm looking for a property around $200,000, my credit score is 770. I just don't have a ton of cash to invest but want to get started. Thank you!

The hardest thing to do in this situation is ask. Thats all you have to do, I would start by complimenting the home. And ask if he would consider selling you the place. Or you can always bring up a rent to own situation. I would offer him a fair price for the home, don't insult him with the price. But when you ask him, reiterate the fact that you can make it easy to transfer title. You're already living there, know everything about the property, and can just sell by owner. No agent needed, that would save him AND you money!