All Forum Posts by: Josh Schaap

@Lawrence Potts thank you for chiming in here. Unfortunately I used an FHA loan on purchasing my first home, so that option is off the table. Just found out today though that there is a program in MN where I can put 3% down and an organization called MN Housing will effectively issue a 2nd mortgage to cover an additional 2% down, getting me to 5% and the payments are deferred. Not a great option, but it is an option. I'm certainly going to continue to seek out other lenders. I do have a relationship with the one I'm talking to now and they've been very helpful in the past. But there are certainly other options out there. Thank you again for your insight!

@Alan Le thank you for the insight! Surprisingly one lender came back to me today with an option to put 3% down getting me to around 300k. There is a program here is MN where MN Housing will essentially fund part of the down payment in a 2nd mortgage with deferred payments. Not a great option, but an option nonetheless.

To answer your question about the numbers (and provide broader context) just wrapped up a divorce 2 months ago. My primary is where all 4 of us used to live. I got the house out of the deal, but it is too much space for just me, but I want to hold onto it because I see opportunity for appreciation (just want someone else to pay my mortgage via rent). Part of the divorce agreement was for me to pay my ex-wife half of the equity in the house so I took out a HE loan/2nd mortgage to buy her out, hence the ~83% LTV.

I do like your idea of buying a single family and having an ADU of some sort. There are properties like that here. Just need to keep my eye out for a deal and see if it works for me. Thanks again for your insight!

Hello all - fairly new to the REI (and BP) community, but I've invested a lot of time listening to podcasts, reading books, starting to network locally etc. I'm looking for some creative options for financing a potential next purchase. I'll try to briefly describe my current situation:

I'm looking at turning my primary residence into a rental and buying a duplex, triplex, or quad and house hacking. Started talking to some lenders and things aren't looking too well. Not a whole lot of multifamily units on the market locally right now, but a decent duplex would most likely be in the 350k to 450k range. If I have to put 25% down, that's going to cost me ~100k that I don't have. I work a W2 job that pays slightly higher than the median income for my area. I work a gig type of job on the side trying to build up for a down payment.

Primary residence is a townhouse that currently has a ~83% LTV and I will most likely break even with rent or have to pay less than $50/mo out of my pocket to cover expenses. Property is in a desirable area with lots of opportunity for appreciation (value has increased by 35% since I purchased in 2018).

What are some creative options I can look into for financing a next purchase? Or if you would advise against buying a 2nd property right now, what other ideas would you recommend?

Thank you all in advance for your responses!