All Forum Posts by: Jon Puente

Hey Colby,

Absolutely correct. FHA has Upfront Mortgage Insurance Premium (UFMIP) that you will pay/finance into your closing costs, as well as Mortgage Insurance Premium (MIP) included in your monthly payment. The UFMIP is a one-time cost while the MIP is every month until you refinance out of an FHA loan (assuming you are doing 3.5% down).

If you have any additional questions, just PM me!

Great Question!

Hey Chris, 

The reason people do a cash-out refinance as the final step of the BRRRR is to pull the money back out and do it again. The last "R" stands for Repeat.

You do not have to repeat if you dont want to, but if you dont have enough money for the next deal by itself, then you would have to eventually.  That is something you decide what is better for you personally.  Do you like the cashflow better?  Or do you want the money for the next deal?

 Yes, I am afraid that is the decision a lot of people have to make, especially with expensive/coastal areas.  Come to Charlotte, NC!! lol thats where I am located. 

Hey Emily, 

DM me further if you have any questions, however I will give my 2 cents - 

Charleston will continue to be a hot market forever because of the location and tourist attraction.  Plus there is a lot of money in Charleston in general.

For your primary, just buy a single family residence with 3-5% down and get a roommate or two to pay you rent each month. They basically rent a room. Ideally you want friends (not random people). The other option is to purchase a 2-4 unit and house hack using an FHA loan. Basically putting 3.5% down and having tenants pay you rent. Those are the best ways to do this without a ton of hassle.

Great Question!

Hey Rene, 

She can buy the home for you using her HELOC, and do 20% down. The problem will be that she is going to either declare the home as a primary residence (meaning she has to live there) or as an investment property (meaning she is renting to someone).

You can do 5% down with Conventional loan or 3.5% down with FHA (but you have to live there as a primary, hence my info above).

Joint checking does not matter, she is buying the home as a rental and you can make the mortgage payment once it closes.  She still needs to qualify based on her W2 income, not yours, unless you Co-Sign together. 

Crypto is not really an adequate source of funds at this point in time, although I would have to assume it will change in the future. 

Hey Jake,

You are most likely going to want to speak to a mortgage broker licensed in your area.  I can help refer someone to you if you want to reach out privately.  I have never quoted an INV property loan that is 25 years...  We do only 30 year terms.  As far as cashflow, it depends on the type of property and market rents in your area.

9.25% seems very high, however I would be interested in hearing more details about the situation for something that I am missing. 

Hey Julio, 

What type of loan are you looking for? I am a mortgage broker in Charlotte, NC and we offer DSCR, Bank Statement loans, and really whatever type of loan you need.

FYI - You cannot close a conventional loan in an LLC. Fannie and Freddie do not allow it, so you would have to go NonQM in this case. Many banks and credit unions do not offer NonQM loans, so it really depends on your situation and what you are looking to accomplish.

Hey Ross,

Single Family Residences (1 Unit) is the only one where 3-5% down applies using a Conventional Loan.  2-4 unit properties would require 15% down.  There is a special program called Freddie Mac Home Possible where you can do 5% down for 2-4 unit properties, however there are income limits depending on the area/county you live in.  I would research more into it as it could help you.

Great Question!

Hey Fili, 

Yes, they can do that. Imagine you are a self-managing a rental property as the landlord and the homeowner.  How else would you know if they tenant planning to occupy your property is worthy of renting?  

Income, background check, and credit report are all required.

Hey Hunter, 

Think of an FHA appraisal/inspection as safety hazards. If its a safety hazard or could be a detriment to health/safety, then it will be a problem with FHA guidelines.

Chipping paint, hand rails missing or broken, windows not sealed properly or broken, insulation fallout, mold, termite infestation, cracked foundation, moisture or leaking roof, heating and electric not working and not up to code, etc... 

If it's unsafe or a hazard, then FHA will flag it. Some fixes are easier than others and you would just handle that as part of the inspection and due diligence period. Buying a "Fixer Upper" with an FHA loan is not a great idea and I wish all these Guru's would stop talking like its so easy to do.

Hope it all works out!!