All Forum Posts by: Jared Bouzek

@Account Closed described, he was able to use a VA loan where he would be able to buy a property with $0 down payment and probably has a pretty awesome interest rate. It can be a great way to get your feet wet if you're new to REI and don't have a ton of money to start with.

Kenneth Williams Unfortunately with conventional financing on a fourplex you would need 25% down to do it non-owner occupied. You might find a small local bank who would do less. You will just have to weigh the interest rate and terms against the benefit of putting less money down.

Ryan Jones I think becoming a full time investor should be a process rather than a sudden event. If you have the W-2 income to lean on early for qualification, it will help you build the portfolio to the point that you can gradually transition into full-time REI without hurting your financing.

Korey Hauenstein A lot of your questions will depend on exactly what you're doing. If the "buy" part of your BRRR involves a property in rough condition then you may need hard money because conventional loans are going to have property condition standards. In general if you're going to do conventional financing, you can put down as low as 15% on a single family or 25% on a multifamily. Rates well vary widely depending on credit and down payment amount. Yes, you will want a pre-approval. Especially if you are investing in Denver where the market is pretty competitive.

@Tammy Tivis Welcome to Bigger Pockets. It seems like there is a pretty good contingent from Pueblo on these forums. Pueblo seems to draw polar opposites on BP - people either think it's the next great REI market or they think it's the worst place you could ever invest. Regardless, each market has its advantages and disadvantages. I'm sure as you learn the ropes, you'll learn to identify those risks. Good luck getting started.

@Nathanael Shook I think the reference to local banks is typically if you are looking for something outside of the Conventional realm that a small bank will hold in their own loan portfolio. If you don't have DTI issues or need to bypass seasoning requirements, then generally going the portfolio route isn't going to be your best option until you exhaust your access to Conventional mortgages. That's not to say you can't do a conventional mortgage with them. It just may not be your best option for somebody going the REI route.

@Heather Rudy Well your capital requirements on a normal owner occupant loan are likely going to be much lower than hard money. I don't think there are too many hard money lenders out there lending more than 95-97% LTV which is where your conventional/FHA loans are going to max out depending on your scenario. Hard money lenders also don't really like to lend to owner-occupants due to compliance issues, so I guess it depends on exactly how you set up the process.

Melissa Harris If you do both the refinance and your new purchase simultaneously you can count rental income from both properties.

Melissa Harris Are you sure that your DTI is being calculated correctly? If you're converting the primary to an investment, you can count rental income on that property to offset the mortgage. Typically the underwriter will want to see a lease and cleared security deposit but you can count 75% of the gross monthly rent as income. Also you will be able to count rental income from the other units you don't occupy in the new property. That should take care of most of the mortgage DTI issues. Do you have a lot of other debt aside from that? Might be worth having another loan officer look at your scenario in detail.

@Lucas Hammer The conventional limit is 10 financed properties. A refinance is not strictly distinct from a mortgage. The term refinance is referencing the method of how you obtained the mortgage. As opposed to purchasing, you refinance your mortgage when you already own the property.

The remainder of your question is going to hinge on what strategy you're using. In general, most people will attempt to finance their first 10 properties with Conventional financing before moving on the commercial or portfolio loans. This is because Conventional loans typically have the better rates and terms. Once you've maxed the Conventional mortgages, you would move to commercial or portfolio loans because you have no other choice.