All Forum Posts by: Jonah Kubath

I currently have a 4bd / 3ba townhouse with a 15-year conventional mortgage at %2.375 (Refi at an amazing time!). I am looking to get a second property. I plan to get an FHA loan and move into it as my primary residence and make my current house a full rental.

Does anyone have any advice on this plan?  This to do or watch out for?

My current fear is that the monthly payment on my current house is 2.9k.  The second property would probably be slightly above that at ~3.5k.  How do banks handle the debt-to-income ratio and how can I set myself up to get through anytime without a tenant?

Thanks for any tips!

 That was the other option my lender provided.  What is your opinion on the interest compared to a refi?  Also, the rate is variable.  Are you worried that it would go higher than a locked in refi rate?

I have owned my home for 2 years now. I have roughly 140k in equity and I am looking to do a cash-out refinance. The cash will be used to start the BRRR method. I am looking at houses around 200-300k and then renovating them to be a rental.

Do you have any tips on going through the refinance?  Companies to use or methods that can save me in fees.  I have heard of some lenders not having a refinance fee.

Thanks

 Are there are restrictions on how to do the cash out?  Like paperwork to indicate that it will be directly used as an investment.  I am trying to make sure I do the taxes right and don't get penalized.

Of course, I will be talking to my lender about this and probably another CPA too.

I want to buy my first rental property.  I decided to call a CPA in the Washington DC area and he informed me that cannot claim the deductions on mortgage interest when you do a cash out refi.  He also said that the money taken out is supposed to be used on same property since that is the asset backing the loan.  I thought that Brandon has used the Cash out Refi process to re-purpose the value gained on a property to purchase a new one.

Can someone help me understand this, a better way to do the cash out refi, or should I call a different CPA?

Thanks

In Sterling, VA. I saw great growth last year in my property value. I have also seen more development as people / business' grow outward from DC. I really liked Arlington as a rental property with the coming of the Amazon HQ in 2023.

So, in the more desirable, high-priced areas, it is harder for a monthly cash flow (probably staying neutral), but the money is made in the value of the property.  I will have to keep looking because I have seen a good amount of Norther Arlington condos that have stayed at the same value for the past few years.  I am sure this varies a good amount across the market.

 Thanks for the help.  I will definitely keep looking.  I just need to be patient and find something that works for the numbers!

I am researching to buy my first rental property.  I am looking in the Washington DC area.  Most of the houses / condos will be in the 500k range.  When running mortgage calculators, the monthly cost would be:

Mortgage: 1700, Taxes: 360, Insurance: 170, HOA: 500 (or more!)

Total cost per month: 2730

When I look at rental prices in the area, I would barely come out positive if not in the red.

Question:  What should I do differently when looking for houses or am I analyzing the properties incorrectly?

Exciting new year and new opportunities. In 2022, I am looking to buy my first rental property. I have just passed the one-year mark on owning my first house (which I live in and rent out spare bedrooms). I am looking to buy in the Arlington, VA (near Washington DC) area. From what I have seen so far, a lot of the houses don't have the CoC ROI (cash on cash) that Brandon talks about (%10-12).

QUESTION: Do you have a different CoC ROI expectation for properties in very populated areas?

I definitely have more questions, but I will start with one for now.  Thanks for any tips / thoughts you have!