All Forum Posts by: Jason Meadows

 So it's in the Halifax area.  Did some digging and actually looks like it's essentially zoned for single-family use only.  In the photos I see some subdivision plans someone had drawn and I wonder if they're selling because they couldn't get the zoning changed.  By servicing I'm assuming you mean utilities.  Not sure how to check if that's the case.

Not sure the answer to the "what will subdivision require" question either.  Can you clarify?  I'm sure there's a ton of tree clearing, road making, lot levelling and other things to think about but I'm really interested in this type of project if I find the right property.  

I'm currently looking at a large plot of land in Canada of about 150 acres within 30ish minutes of a city. Market price is 600-800k range for a property like this. Since it's relatively affordable I'm considering buying this for investment building a couple houses at a time and selling the houses to pay for more houses and recover my initial investment.

Lot is heavily wooded and has its own lake. Utility access from road at property edge.

Is this a reasonable strategy? Are there major pitfalls I should watch out for?

Thanks @Randy B.  I've heard that larger multifamily properties will require higher down payments.  Are you finding this to be true even in smaller multifamilies (duplex, triplex)?

 Definitely, one of the issues in my case is that I'm investing in an expensive market.  Diversifying into buying some properties in a less expensive area with good growth, cash flow, and CoCROI would be a good way to offset my costs too.

I had the same thought about the higher rate on the second mortgage vs. PMI. Might end up no different but I'm not sure.

Cash-out refi is a good idea. Just not a scalable strategy unfortunately since it's limited to the total equity you have in your properties.  

@Ye Cheng I don't, why?

@Jason Wray got it. Thanks a lot for the explanation.

This is very helpful, thanks!  With respect to the first option you mentioned - regular 80/20 loan with 2nd mortgage to cover the remaining 20% - are you saying you can do 0% down without PMI or would the second mortgage likely be 15% or something?

Also, would these have to be mortgages from 2 different banks?

Finally, if LTV is usually so important, why would a bank give you a second mortgage on something that already has an 80% loan on it?

Thanks,

Jason

Hi BPers,

Sometime in the last 6 months or so I remember hearing David say on the podcast that you could do an "FHA-like" situation without actually doing an FHA loan. The result in the scenario he described was that you could put 3.5-5% down without having to pay PMI. I think it had something to do with getting a normal 80% mortgage and then getting a secondary mortgage. Has anyone done this? How does it actually work? Any pitfalls to watch out for?

Thanks in advance,

@Teri Feeney Styers this is cool! Any key lessons you've learned along the way to convey to tiny house newbies?