All Forum Posts by: Jon Puente

Hey Mary, 

I do self manage my long term rental so I can only answer for what I would do in your shoes!  I personally would not plan for someone to move into my property well in advance, especially because there are a lot of factors here:  

1) She is moving states, which can bring A LOT of uncertainty.  What if she is delayed in moving, or can't get help traveling.  Or what if one of her dogs or family member gets sick/injured and she has to care for them, the list goes on...

2) I understand you said she has great rental history, however a Chapter 13 repayment plan can be a topic of discussion.  I would not bet all my eggs on this tenant pulling through on all angles with that type of situation. 

3) She has 3 husky's. Just one pet can be a handful, let alone 3 husky's...  I do not know what type of property you have or amenities, but you can BET that they will do some damage longterm. 

With that being said, if you are desperate for cash or need to fill vacancy because of mortgage payments or on going expenses, then do what you have to do.  My plan would be to keep marketing your property on Facebook, Zillow, and Craigslist until you can get someone to physically look at your property with less concerning factors.  

Great Question!

Hey Kass, 

Coming from an independent mortgage broker here in Charlotte, NC! There are a lot of lenders who have loan amount minimums, for example 60K, or 75K, or 100K. 

As a mortgage broker, I do have a few lenders that will lend on 100K amounts or lower with no overlays.  I actually had a lady recently wanting to purchase a 50K home using a Conventional loan.  So yes, you can do those types of loans.  

However, the rates/terms are not as aggressive given that they are smaller loan amounts, but we can do them all day long if that is what the client is seeking.  Feel free to DM me for any other questions!

Hey Maximillian, 

Full Disclosure - I am not a realtor myself, I am mortgage broker.  However, I work with a lot of realtors that are also investors themselves.  I am here to tell you that there really is not a downside to being an agent, as well as an investor. 

You can find properties yourself as an agent, and be ahead of the game before other investors.  You can do your own paperwork and partner will other agents on deals (if you wanted to).  You will not have to pay commissions to anyone should you decide to sell homes you already own.  It can be a perfect combo if you are not being an agent "full time."

I can not think of any downsides, other than you have to invest money for the license and pass the test.  It is certainly not a requirement to be an investor, which you already pointed out.  Do it if you want to!

Hey Paul,

The only way I can answer this is what would I do if I was in your shoes...

I would NOT buy a property knowing that you are leaving within 6 months of purchase.  That is a great way to lose money and make a really bad decision, especially on a tight schedule and no knowledge of how to finance a home.

Stick to renting.  I know its painful in the short term, but you can make your move to Colorado knowing you do not have a house to deal with while in transition.  You can always find a home in Colorado and make a smart long term decision.  

Hey Robert, 

I would look for a real estate attorney in your state.  They can handle a QCD for a relatively inexpensive cost!  

Hey Steve, 

The most common way to avoid taxes is using a 1031 Exchange and purchase a property shortly thereafter selling a rental.  I have no plans on selling on my "old" primary because I like buy and hold real estate.  But if I ever did sell, I would use a 1031 Exchange. 

Hey Iris,

The only reason to start an LLC and purchase properties under that LLC is for limiting liability, meaning its harder to come after your personal assets should someone sue you. The only reason someone would sue you is because you have substantial assets, enough for them to want money. If this is your first rental, then it would not be worth it.

Right around 3+ rentals is when you should start thinking about an LLC. Transferring properties to an LLC is very easy to do with a QCD or Quit Claim Deed. If you are pursuing traditional loans, lenders want financing done in your personal name anyway. However, if you are purchasing loans with NonQM loans, then you can purchase under LLC.

Just buy your first rental with your personal name and start building that way! Keep it simple!

Hey Denise, 

I am going to assume you are looking to purchase a home and not refinance a home in this case - 

I would ONLY use temporary rate buy-down, not a permanent rate buy-down in this interest rate environment.  Negotiate seller credits upfront on the purchase and use those to buy down your rate.  You can make 10K in seller credits buy your interest rate down 2%!!  Then when rates settle down as inflation comes down, you can refi into a more permanent term of financing.  

Do not use your own money to buy down the rate right now. Use the sellers money or wait to refi later. 

Great Question!

Hey Brandon, 

No need to pull credit with all lenders.  Just get quotes and see what they offer first.  If you have 1 obvious leader and they say they can provide great service, then just apply with the 1.  If you have 2 lenders that are very close and both have great reviews, service, etc... then you can apply with both.  Wont hurt at all as long as you apply with both in the same 14 day period.

Hey Shaun,

Great Question - Buying the new primary residence is just like buying your first one as far as Down Payment, Interest Rate, terms, etc...

The biggest difference is qualifying for it. The lender will take BOTH mortgages into account for you DTI calculation, as well as taxes, insurance, and any HOA fees that apply. If you want to offset your old mortgage with rent, you need to have a lease agreement in place (typically a year or longer) for it to be used to qualify. Lenders will take 75% of the gross rent to help offset your mortgage payment.

You can buy a current home and get your old home rented out simultaneously, however you would need to qualify for it that way. If your DTI is already at 45% without a new mortgage, then you will need a lease agreement in place before you buy again.

You can do this! Go slowly and don't just throw any random renter in your house.  Do your Due Diligence!