All Forum Posts by: Julie Coleman

My husband and I submitted an offer on a single family house with an accessory dwelling unit studio in outer Los Angeles area. We submitted our offer site unseen (no pictures online-just google streetview). Our offer was 50k over asking the day it posted to MLS. We attended 2 of the 3 open houses. Selling agent said the seller liked us and sounded hopeful. Within hours of the offer deadline, higher offers came in. Seller will likely proceed with counter offers. What options do we have to make our offer more attractive without a higher purchase price? We have 15% down but will need to finance the rest of the loan. Any advice helps!

My husband and I submitted an offer on a single family house with an accessory dwelling unit studio in outer Los Angeles area. We submitted our offer site unseen (no pictures online-just google streetview). Our offer was 50k over asking the day it posted to MLS. We attended 2 of the 3 open houses. Selling agent said the seller liked us and sounded hopeful. Within hours of the offer deadline, higher offers came in. Seller will likely proceed with counter offers. What options do we have to make our offer more attractive without a higher purchase price? We have 15% down but will need to finance the rest of the loan. Any advice helps!

I agree with your idea about a 6 month lease. When my husband and I were renting we were on a 12 month lease cycle which renewed in August every year. Signing a lease in summer is highly competitive. Maybe short term lease your house until march and then find seasonal workers to rent until a 12 month lease option is better. Good luck!

My husband and I are looking for our first house hack multifamily in Pasadena, California. Pasadena is a City suburb directly adjacent to the City of Los Angeles. After discussing lending options with our broker, we would like your advice! Here is a list of financing scenarios we like to get you take on. For simplicity, the scenarios below will be based on a $600,000 duplex where we intend to renovate the two units while we live in one unit. After one of the units is renovated cosmetically, we intend to rent the second unit to a tenant while living and flipping the other unit. After we live there for the minimum time allotment required by an owner-occupied loan (1 year?) we will vacate and rent out both units. We intend to cash flow the property for 3-10 years to allow for any cycle dips in property prices. Available funds for down payment & renovation are $80-100k. Both of our credit scores are above 760 and we are preapproved with underwriting. Financing Scenarios 1) Apply for two mortgages (piggyback loan). First loan is a conventional 30y-fixed rate at 80% LTV ($480,000) to avoid private mortgage insurance. Then take a second mortgage with a higher interest rate we can pay off with the tenant cash flow after one year. Either refi into one mortgage or pay off smaller, higher interest loan first. Pros? Cons? 2)FHA loan at 85% LTV. (15% downpayment) Little money for renovations. Must refi to get out of PMI but since we’re First time home buyers it’s worth looking at. Pros? Cons? 3) Conventional loan at 90% LTV (10% downpayment). Must pay PMI. Use left over 40k funds to renovate units. After renovation (less than 6 months), apply for revaluation of appraisal. If property appreciates beyond 20% equity, then PMI is removed. Put extra cash flow from property into mortgage payments to meet 20% to make sure revaluation satisfies. Any advice helps. Thanks!