All Forum Posts by: Jamel Romans

@Brody Veilleux Yes you can cash out refi year after year on each property. I am planning on doing it myself on my journey. I also had previous clients do the same.

Jamael Romans

United Mortgage Corp Lender

Yes that is correct I know. He is seeking the lower down payment. He will have to put more than 3.5% down if he is not occupying.

Hi Lue,

I am a mortgage lender with United Mortgage Corp in NY. Also a multi family investor/house hacker in Brooklyn NY. 

I am very familiar with guidelines especially since I handle these loans. You can up to 4 borrowers on one loan by the way. You can get 2-4 unit properties using FHA 3.5% down or you can use Conventional loan 2-4 unit properties using 5% down.

As far as primary residence and getting the 3.5% down payment on FHA. Being that your brother lives here he must show he has employment here in NY he will be good for the loan using FHA. With you if your employer is not based in NY. You must show some type of proof that you work remotely and plan to live in the home. On an FHA loan all borrowers purchasing must owner occupy the property. We can say that you will be living in the same unit as your brother. This is how you get the cheaper down payment. Also the rental income of the units will allow you all to qualify for a higher loan amount.

Best,

Jamael Romans

United Mortgage Corp Lender

Woodbury NY

Hi William,

I am a mortgage lender in your area with United Mortgage Corp. I have helped finance some of these style loans. I am also a BRRRR strategy investor in Brooklyn NY. Heres a great video that help me throughout my process last year.

Best,

Jamael Romans

United Mortgage Corp Lender

Hi Rosemery,

My name is Jamael Romans I am a multi family investor. Also a mortgage lender with United Mortgage Corp. I have done a fix and flip in Lauderhill FL before being that I am from south Florida. So I do have contractor recommendations if you still need.

As far as the financing part to do work. The advice I would give as a lender are these few options if you both are on mortgage. This will allow you to remove the person and do the financing on your own.

1. Home Equity Loan/Line of Credit: Since you're looking to access equity, a home equity loan or line of credit (HELOC) can be a good option. This allows you to borrow against your home's value. Similar to a credit card. What you use is what you have to pay back.
2. Cash-Out Refinance Cash-out refinance this gives you cash from the equity you have built up in your home. You would need atleast 20% to do so. Cash out refi gives you a new fixed rate loan for 30 year term.

Best,

Jamael Romans

United Mortgage Corp

Hi Kerli,

I am a mortgage lender with United Mortgage Corp. I handle loans in your area and also I am a multi family/ house hacker myself. I am from Hollywood FL. So I am familiar with soflo.

One strategy I am trying to implement is 

The 4-3-2-1 Strategy:

• Start with a 4-unit property: Live in one unit, rent out the others to cover your mortgage and expenses.
• Repeat with 3-unit, 2-unit, and attain your dream home last (1 unit property)
• After 12 months of living in each property, consider a cash out refinance to use equity for improvements or further investments, if beneficial for you.
• Build a real estate portfolio of 10 rental units in a 3 year span while generating rental income. Utilizing this strategy with FHA or Conventional loan products.
• Although sometimes the 4 units can be hard to find sometimes you can compromise and find maybe a 2 unit or 3 unit with 4 units. For example, my home is a 2 family but I have 4 units in the building. I live in one unit and rent out the others. 

Best,

Jamael Romans

United Mortgage Corp Lender

Hi Patrick,

I am a mortgage lender with United Mortgage Corp based in NY but I conduct business in the Jersey City Area often. Also I am a multi family investor and house hacker in Brooklyn as well.
I am unsure what you mean but I can share some of the things I use on my property.

I use a platform called avail.co to create my leases, run background/credit checks, create maintenance logs, send my tenant rent payment reminders, and collect rent through the platform. Tenants can pay using debit or credit card.

I also have smart cameras and door locks. So if a tenant gets locked out. I can unlock from my phone device if I am not around. Also I send out email reminders of trash days so tenants keep in mind. This helps prevent my building from getting fine. I live onsite so it makes things easier but eventually if I move out to purchase my next property. I will consider a property manager. Hope this helps.

Best,

Jamael Romans

Refinancing into DSCR will give you a higher interest rate. Potentially a higher monthly mortgage payment. Look into cash out refi into conventional if you need the funds to continue to invest. If not a rate and term refinance into conventional loan will help you save more on your monthly payment because you lose FHA MIP.

You are allowed to put up to 10 properties on your personal credit. You still would have to personally guarantee the business being that going into DSCR would be your first time. It will likely be best to build up your experience before considering the business route so you don't have to personally guarantee.

Best,

Jamael Romans

Hi Brian,

I am a lender in your area and see these type of deals often. If you do not want to live in the property then yes the down payment will be 20% down using a conventional loan. Also yes, cash out refinancing is an option you can use to acquire the next multi family. Although you have a 2.75% rate you have to compare the new monthly mortgage payment with the present day rate. Even though the rates are currently higher. I am sure you have built up 20% equity so you will be losing MIP refinancing into a conventional loan. WHich can balance out the payment. Run the numbers on your cash flow and see if everything makes sense if you cash out refi. It is not about the rate at the end of the day. It is important that your property cash flows! If you all do decide to live in the next property you can use the conventional 5% down payment for multi family or you can use FHA 3.5% down again but it will just depend on the reason for using it again.

Wishing you al the best!

Jamael Romans- United Mortgage Corp Lender