All Forum Posts by: Jordan B.

@Brandon Kalp Yes I will be using an FHA Loan. Is a great way to get into a property with very low money down and then use the money you will be saving for your next deal. The only downside is the monthly PMI which you are stuck with for the life of the loan. But if the numbers make sense even with that factored in then it doesn't even matter.

Welcome Brandon!

I too am looking for a house hack as well! For me personally, I run all of my expense numbers (Mortgage, Insurance, Taxes, Vacancy, Cap-EX, Utilities, Repairs, Lawn Care etc...) to see what my final income would be while I live there. It is very hard to find something that you actually make money on after ALL the expenses. So after everything, if I end up paying $200-$400/month then that is a good investment for me. Because this is well below what I would be paying if i just straight up rented. But the biggest thing i then look for is the cash flow i receive after moving out. I look for $150 per door after i move out in net profit each month. I hope that helped a bit.

Jordan

@Christopher Giannino Yes this is for an OO loan and that is exactly what they did. After running the numbers it would still be better to do the higher interest rate than the PMI. Plus there is the added benefit of not having any of the red tape that accompanies an FHA loan.

@Aaron K. Thank you for the response! I will look into it. The kicker is, this is for a 2-4unit loan. 

Hello Everyone,

I was just offered a conventional 30 year fixed mortgage with 3% down at a 5.25% interest rate and NO PMI? This seems like an amazing deal and maybe too good to be true, has anyone ever heard of something like this?

Thank you,

Jordan

@Chris Ramos that is exactly correct. Thanks for the input.

@Upen Patel Great, thank you for the thorough explanation.

Hello Everyone,

If I own a non-occupied rental, am I still eligible to use an FHA lone for a separate rental property that I will owner occupy?

Thank you

@Ryan Auber I would highly recommend reading "The Book on Rental Property Investing" by Brandon Turner. This is a great book for a beginner and explains step by step how to buy a property. It also comes with a ton of great forms that you will be needing. 

Welcome @Ryan Auber!

I'm a young investor in the Dayton, OH market. You are making the right decision to get into real estate. I don't know what your current living situation is but im going to guess you might be living home. If you are living home I would suggest to try and save for a down payment for a FHA loan for a multifamily in your area. This only requires 3.5-5% down! Then do a house hack and live in one unit and rent the others out to cover the mortgage.

With a 70K salary and living home for free, you should accumulate the down payment relatively quickly. You will then have a property that you are living in for free (or very cheap) and further accelerate your savings for another down payment (not to mention building equity and net worth).

Thank you @Nicholas Aiola, very helpful.