All Forum Posts by: Jorge I. Pimentel

Hello,

First and foremost, thank you for taking the time to read my post. I am a new investor in San Diego, CA. My brother and I currently own a SFR in Riverside, CA (fully paid) that we inherited and have been renting for around seven years. We are now looking to buy a multi-family property in San Diego or Riverside County.

However, we are currently in a unique situation. We have around 40k saved for the purchase, our credit is in decent shape (low 700s), however; our employment situation is holding us back. I quit my construction engineering job (currently unemployed) in October 2021 to start a trucking business (still in process). As for my brother, he quit his construction job back in mid-2020 and started doing construction projects on his own. He did not register his business so he only reported his W-2 income for that year. He received better tax advice now, and wants to report 2021 income as self-employed (net income 110k). This could help us for the purchase.

We visited a mortgage company and they gave us two options.

1) Re-do 2020 taxes and show proof of self-employment income (to comply with 2 year of employment history).

2) Purchase with a 20% down payment.

Our original plan was to purchase with a 3.5% FHA or 5% conventional. Our market is very expensive and we can not afford a 20% down payment. Any advice on what we could do? Are there any other alternative options for us or is what they told us the only way?We want to go shop to other mortgage companies for other options as well. I would definitely like all recommendations/advice you have for us. We definitely want to get started this year.

Again, truly appreciate you reading my post and look forward to your advice.

@Share Ross

Hello Share,

Thank you for your comment. I totally agree with you, amazing people here! This is my first post and I received so much useful information! @NicoleHolcomb brought great points! I am sure this will place me ahead of the game!

I will definitely share my success story here!

@Maxwell Ventura

Hello Maxwell,

Thank you for this information, it helps a lot!!

@Henry Lazerow

Hello Henry,

Thanks for the valuable info! I’ve been scouting properties in Zillow and Realtor.com. I’ve found a few promising value add properties. What repairs or upgrades do you consider bring the most equity at first.

I found a property that fit my criteria and has potential for an ADU. It has a detached two car garage that can be transformed. I'm trying to figure out how much this would cost me and approximately how much equity it would bring to the property. Any knowledge on this or formulas I can use? Thank you!!

@Twana Rasoul

Thank you!!

@Nicole Holcomb

Hello Nicole,

Thank you for this great information!! I knew that in commercial property the income produced by the properties could be used toward your income, however; I did not know this could be done in multi-family. Very good to know!

I bank with Navy Federal and read online they are offering great interest rates as well loans that don't require PMI. I will be going into the branch probably tomorrow to inquire about this. I would also really appreciate if you can connect me with the lender you work with.

I will DM you so we can talk further. Thank you so much!

@Dylan Bowman

Hello Dylan,

Thank you for your feedback! Where can I find this "network" link you mentioned? And yes, I've been looking into FHA loans and conventional loans that offer 5% down. Any feedback you might have on working with lenders? I bank with Navy Fed and just saw they offer great interests and loan options. What do you recommend from your experience, banks or lenders?

Thanks!

Hello,

I am 24 years old living in San Diego, CA and have around 40k saved up. I’m very passionate about real estate and been educating myself as much as possible (books, BiggerPockets podcast, courses, etc.) to make the best move possible for my first investment.

The money I have saved up is not much in my market for bigger or more complex investments, but is a good amount for house hacking. Also, I have heard is a good start for new investors. I will start checking out properties soon and would like to purchase by end of year or by the beginning of the next. I would appreciate any feedback you might have for me. Anything to look out for or not miss out on. From working with realtors to running the numbers right in properties; anything is welcome.

In advance, thank you!!