All Forum Posts by: Jason D.

Personal loans are anywhere from 7% to 10%.  I do not plan on paying down the mortgage. 

Hey folks,

I'm at a bit of a crossroads regarding what to do to move forward with REI. I currently house-hack a SF home but do not own any other properties. It has about 250k in equity (worth $400k, 150k note at a great rate of 3.25% 30y-fixed), but my DTI is high that I can't access the equity. I have a few sources of income that net me about $10,000 a month. Here's what I can do to move forward, and I honestly don't know the best route to take.

1) Pay down my personal debt to free up the equity in my home. This will take me about 6-8 months to pay down the $75k (ish) I owe. This will let me qualify for the equity and/or my second VA loan if I wish to access it to house-hack again (my goal is to purchase a 2-4 plex).

2) My second option is to keep funding my cash flow strategies.  Without getting into the details, I have the capacity to create an extra $200-$500 a month for every $10,000 I put toward these assets (a mix of promissory notes or crypto passive).  The returns are excellent, but there are risks to both.  They haven't failed me in the past three years, but there is no depreciation and minimal diversification.  I basically have all my eggs in two baskets.  

3) Fund my business to purchase my first investment property via a DSCR loan. My final option would be to fund my LLC so my LLC can buy its first property without any credit check or connection to me personally. Basically, I save up 20%-25% of the purchase price of a cash-flowing property (+ 6 months of rent reserves), and buy my first multi-family with my business. I could save up for this option in another 2-3 months easily if I purchase in the right area.

Anyway, I'm someone with a great problem. I just don't know how to move forward.  I'd love some counsel, BP.  What do you think? 

Okay, everyone, here's a belated update:

Looks like after all expenses of selling our condo and buying a new home, we'll have around $30,000 to reinvest.  We'll be in the Round Rock area just north of Austin.  Both houses are u/c so hopefully everything will go smoothly (we got a nice cash offer on our condo). 

What are you thoughts on the best way to reinvest this?  

We're not behind on student loan payments, which seems to be the only possible condition for a lien to take hold. 

Thanks! -Jay

Hey all,

My wife and I are considering getting a new property.  We currently own a condo but I'm the only one of the loan.  My wife has student loans and I know in some states that liens will be put on mortgages when people have student loans. 

We live in Texas and we do have homestead in Texas.  Does anyone know if we're at risk for that?

Thanks!

The only way it would work if the bank were to appraise it at 140k.  Would that be a stretch?  Tax appraisal is significantly less, and only one property has recently sold for 144k, all the others were under 129k.   Also, my mortgage would go up because my note is now 112k instead of 87k, which would mean my cashflow would be minimal, if any. 

Hmm, really good ideas.  Thanks for sharing them.  I had no idea you could get money back from a refinance.  

A great thought, Scott, but know that if I 1) move or 2) refinance the loan (I should have clarified that), I still have to repay the 10k immediately.  

I don't have to worry too much about my down payment of my next home because I am a Veteran and have access to a VA Loan (which I wasn't able to use on the purchase of my condo b/c they were not accepting VA Loans).

Other options? 

 ******

Scott, all good questions.  My wife and I are still deciding.  

1) If I can't get a duplex, the plan is to buy a SFH and then use the capital gains from our sale to buy either another SFH to rent out or a duplex if it cashflows. We'll see.

2) I'm happy to sit tight in our little condo for a while.  It's a great location and I love it.  

3) I have to live here another 7 years for the 10k forgivable loan to go away.  

4) Is it really worth it now. Such a good question. To sell my condo, yes! To purchase a SFH... maybe. Depends on what we can find. We're open to buying a cosmetic fixer-upper as well.

Lots of variables.  -Jay

Thanks, Joe. As of now 3-4 units are out of my price range, as my loan officer is only able to use my personal income at the moment. However, next year I'll be able to use my rental income as a part of my income, and use my VA loan for the second time.

Ideally, with both VA loans + my cash from the sale of my condo, I should be able to have 3 or 4 properties in about two years. Just working on getting the first duplex!

Any other recommendations?