All Forum Posts by: JooYung Choi

To utilize fha or low down payment loans, you would have to move into the property. Otherwise you are looking at 20% conventional. Being physically present to manage the rehab and tenants is helpful but not necessary. As long as you have a great team around you, you should be able to that from wherever you are in the world. 

Since you have 60-100K, most likely you will need to househack. You would get to save money on the down payment that you could use towards renovations. Think of it as a 1 year project, so once your property is stable, you can rent out the unit you are living in and go back to the Bronx. Not a bad trade for a triplex / quad in Elizabeth!

If you can pay for purchase / renovations with cash, you'd be saving a lot on holding costs. But if the deal's good enough, everyone will make money. Leverage in real estate is the fastest way to scale but it comes at a cost. There are obvious risks involved with hard money but as long as you do proper due diligence, there is money to be made. Just be conservative when you work up the property! (ie: higher contingency budget, overestimate the rehab, underestimate the ARV, longer holding time, etc)

How long will it take to save up for the purchase? There's opportunity cost involved as well. 

Not sure if HELOC would be the best move here. You are just moving your bad debt to the HELOC, which has second lien position on your home. Your rent numbers won't work great either with this on top of your PITI.

What's your interest rate? You could opt for a cash out refi so at least it's a clean transaction. Then you could keep it as a rental because your PITI will be much more manageable.

If you're not interested in keeping it, just sell it! It'll be tax free anyway. 

A 2 bed 1 bath would be a great MTR. I have found that 2 bedrooms often have high occupancy and have a great price point in my market. The best renovation you can do would be to add another full bath. 

Hey Frank, love your mindset. Can't forget your purpose and your why. Unfortunately, your W2 is a great vehicle for your investment properties, gonna need it to get the best loans. We work hard now so that we don't have to later!

Highly recommend doing a full rewire. You are risking your property, especially with knob and tube. Since you are going to be keeping the property, wouldn't you want to own a property with updated mechanicals? Less headaches for you down the road.

Your best bet is to buy a home and house hack. That way you can utilize a low down payment loan. Otherwise, you are looking at 20-25% for an investment loan. 

You could buy a home 3.5%-5% down + closing costs, ideally a multi family home. Collect rent and stabilize. Then do it again to move into your next home. Now you can rent out the unit you are living in, should be cash flowing. 

Hey Austin,

I would opt for buying the MFH, but it depends. If the car loan is taking up too much space on your DTI to be able to buy a deal, then it would have to go there first. If you can buy the home you want without paying it off, then go for the MFH. The asset could pay your car loan every month!

@Morgan Tondre would be able to give you some good insight on property management!

Personally, I don't like taking on existing tenants. I like to renovate my property so that I am able to capture the better rents / force equity / peace of mind knowing that property will be good for many years to come.

Always be sure to set aside some % for capex and vacancy. 

Any particular reason why you are investing out of state for your first property? Have you considered househacking your next property and renting out your current home? 

Hi Heather,

Personally, I would start investing sooner than later because the longer you hold, the more equity you'd be able to build. You wouldn't be able to refi out unless you have 20% equity in the property so if you are planning to do renovations, that would be the best way to get to that equity. 

One thing to note is that is generally harder to go from SFH to MFH, but not impossible. Also if you have a FHA loan on your profile, you would not be able to get another one until you refi out. Stacking SFHs utilizing low down payment owner occupied loans is a great way to build your portfolio fast! Just target neighborhoods with high appreciation potential and strategically move to your properties.

good luck!