All Forum Posts by: Julian Sibley

Congrats! @Vayna Jerabek

@Robbie Williams Welcome to the forums! I don't know what you do for work, but my $0.02 is to find a job in the same industry when you move that is W2, and buy a 4-plex as an owner-occupant. Then you can use the BRRRR method to get into your next property. Having the W2 job will allow you to leverage getting loans, so you don't have to pay cash for your purchases (but you still can if you want to.)

Owner occupied 4-plex you could use a FHA loan with only 3.5% down. Sharing walls with tenants is not for everyone, but you will be able to stretch your dollars much further if you are willing to owner occupy your multi-unit purchases when you start out. (Then focus on paying cash for your primary residence after you have acquired a couple rentals.)

Refinancing supercharges your investing because it gives you more capital to work with. Refinancing doesn't "increase the value" of her home, but if she were to refinance her house they will get an appraisal done and use the current market value.

I know many people who use the BRRRR method and purchase up front using a mortgage, so the process is still the same. HELOC vs cash-out refinance is going to be a personal preference, but I prefer to use a cash-out refinance for purchase money, and a HELOC for rehab costs and things that will be more of a short-term expense. (Again, personal preference.)

A refinance will always be a conversation around what you are trying to do/use the money for, and comparing it to what the current interest rate is. If her interest rate is in the low 3's, then she will probably want to pull a HELOC or some form of a 2nd. If she is trying to figure out whether or not a refinance makes sense, her options are to run rough numbers on a mortgage calculator, or to call her lender and explain what she is trying to do. Without specifics, it can be hard to give someone a good recommendation.

@Essien Benjamin Welcome to the Everett area and congrats on your job!

There's a local meetup in Marysville on the 4th Monday of every month. You can find a good amount of REI meetups on meetup.com

Meeting local investors will give you an opportunity to network and pick their brain a little.

Best of luck with your investing!

"There is little success where there is little laughter." - Andrew Carnegie

Keep chasing that smile!

@Nathan Wait residential appraisals use sales comparison approach for values. So to determine if it is worth your time, look at the price difference between duplex and triplex sales in that area, preferably within the last 90 days.

You will have to pull permits to convert it to a triplex, but it can be done. Have a GC of yours go in and give you a bid, they'll get you a ball park figure to work with.

@Kiara Washington It sounds like you've already reached out to your lender, so hopefully they answered your question.

In the case that your question hasn't been answered:

FHA loans are intended for owner occupied primary residences, which means generally someone can only have one FHA loan at a given time. There are a few exceptions where FHA will allow you to have 2 FHA loans (meaning you are leaving your current primary and trying to move into a new primary residence using a FHA loan).

• Relocation for an employment-related reason, to an area 100 miles from your current primary residence
• Increase in family size (legal dependents) and the property now fails to meet family needs, and you also have at least 75LTV (In the home you would be leaving)
• Vacating a jointly-owned property with no intent to return (Most common in divorce situations)
• Non-occupying co-borrower, meaning you co-sign for someone so that they can buy a home using FHA, but you already own one

If these situations don't sounds like yours, you will have to either sell your current primary before you can purchase a new one using a FHA loan, or refinance your current primary to a conventional loan before you can purchase a new primary residence using a FHA loan. Most people recommend getting your foot in the door with a FHA loan, and then as you acquire more properties you will use conventional loans (larger down payment).

Best of luck with your purchase!

@Vanessa Montoya What do you mean in terms of farther reach? Traditional financing is pretty vanilla, and most lenders can offer financing for a 1-4 unit property. Personally I would avoid big banks, but I'm pretty sure you have a Guild, and Caliber office in Kennewick. I would start there.

@Mark Bookhagen gave you some great advice. If you occupy one of the units you can use a FHA loan for your first one, which is only 3.5% down. If you use conventional financing it will be a much larger down payment.

Best of luck on your search for a lender, typically you can get good referrals from friends and family, or just look up reviews online. 

@Jordan Greek Welcome to BP! Most individuals on these forums are investors. Who do you work for? Or if you don't want to share, are you lending on residential or commercial properties?

Once you have your license you would need to find a company to work for (Assuming you are not already at a lending company). Then as far as the residential space goes, your first year typically consists of working your "sphere". Your database should consist of individuals, friends and family members that already "know you, like you, and trust you". These will be the easiest people to gain sales from initially.

Hopefully you have some friends who are also real estate agents? Not sure why, but the general population still seems to get interested in looking at homes/open houses prior to getting their financing in order. So having real estate agents who can send you consistent business is the next big step.

First year is generally a bunch of "door knocking" and being told no. Lenders are a dime a dozen, but if you do good work people will start to recognize it and eventually use you as a back-up lender. Also, if you can help agents build their business they will appreciate you more. Being able to send a realtor a good referral is worth it's weight in gold.

Best of luck on your new journey!

@Ryan Judah You are a little ways South of me, but the Judd & Black appliance has a liquidation center in Everett. The scratches/dents are typically on the sides or back due to damage during shipping from the manufacturer.

Or, if the rental is not high-end you can get bottom of the barrel prices at the Appliance Recycling Outlet in Snohomish. They sell used/refurbished appliances, and have some new appliances in stock as well.