All Forum Posts by: Jarred Sleeth

 Hey Joe. Have you considered PadSplit? They just launched in the Austin/San Antonio market. Feel free to PM

Hey Vic, too short notice for me but would love to make the next one. Can you PM me the information for the meet? Thanks!

Hey there! House hacking in Austin is a great strategy as there are many small multifamily opportunities here. You should connect with @jordan Moorhead - he is an investor and agent that specializes in this here in town. Great guy, to boot. 

Good luck!

Hey Chris, welcome to the forums!

It sounds like you've got the right idea - utilizing a house hacking strategy to start is a great way to learn the business and take advantage of very good leverage with low downpayment and low rate financing options. Now, I don't know your particular financials, but it's possible that you could build a portfolio of properties by BRRRing congruently as well since these will likely just be commercial loans. 

I'm not going to speak to the FHA/Conventional side of the coin so much as it is not my specialty, but I did get my start in Maryland as a buy and hold investor and hard money lender. The strategy works and works well. The trick, as you've pointed out, is all in finding the deals. I recommend networking as much as you can and meeting investors/agents on the ground. I hear that one of the larger meetups is restarting in Jan at the KW offices in Millersville. You may start there.

 What @Russell Brazil is saying here is truth. 95% of the out of state investors that call me to finance their deals in Baltimore - I talk them out of it (or at least attempt to). It is very boots on the ground, and unless you're from the area and have the resources available to you, I recommend thinking twice. 

Hey Rob, welcome to BP! You're in the right place for sure. So, a few things to address here:

1. You'll want to make sure per your loan documents that you can move out and rent it without incurring any sort of penalty. Usually you can do this within 12-24 months with most loans. Likely you're fine there.
2. The lender is correct on PMI. If you can get an appraisal value supporting an 80% LTV (in most cases) then they will be able to drop the PMI. Definitely worth the cost if you think it will appraise.
3. This is where things get tricky. Without leveraging the existing equity in your home, depending on your cash reserves, it may be tough to get a new loan. You also may run into DTI (debt to income) issues because while you likely show enough income to buy the house, with the additional loan on the first house needing to be covered, it might be tough. Lenders won't be able to count "future" rental income to offset the debt, and usually want to see 12 months of this rental income on your taxes to include in your DTI calculation. I would speak with your lender and discuss what your options would be.

Good luck and reach out if you get stuck. I'm down here in Austin as well.

When rates eventually go back to a normal level, we are all going to have a jolly good time going through these old threads asking if a sub 3% rate is good. 

As a lender, I agree with @Ned Carey (Hi Ned!) @Jordan Moorhead and @Jacob Pereira here. A lender relationship can surely start any time, and the right one will help guide you into the direction you need to successfully secure the financing and can even help you determine if the deals you are looking at are worth pursuing. 

A great agent can do the same, and if you can find one that specializes in House-Hacking specifically (hint: @Jordan Moorhead) you're going to go far!

Welcome to BP and if you make it to Austin, please reach out! I'd love to connect. 

Thanks for the shout,@Adrienne Green.  

For those tuning in, 80% cash outs in this climate are going to be really tough to find. 

Everyone already kind of touched on this, but look out for that prepayment penalty. 

Secondly, the type of term you are refinancing into/out of will certainly play into whether or not this is worth it. Make sure to calculate all the costs associated and really look at how much savings you're going to see.