All Forum Posts by: Karan More

Hey Guys,

So here is my situation:
In 2020, I took a townhouse at very low interest rate as my 1st primary home. At that time I was new to real estate and paid 20% down payment for this one. 
After learning about real estate house hacking, I got idea of buying another SFH nearby by taking out HELOC and then rent out my townhouse.
But my agent told that, its best to get a duplex or triplex as new property and then later after 6-8months buy a SFH using house hacking. Because if I buy a SFH and then go for another using house hacking, I wont get lender to lend me money for my deal.
I don't want to try hard money route right now. 

My questions are:
Is that the best case for me? to go for duplex or triplex and then go for SFH.
After this, can I still house hack? Planning to do at most 4-5 so can have good cash flow. 

Hey Guys,
I am trying to calculate Cash on cash return when a BRRRR is done. Here are my inputs:
Purchase price is 102K (19.6K down pymt, 78.4K mortgage and 4K closing)

Rent is $1,500.

Rehab cost $15K

Expenses are coming to be $1,052 /Mo which includes (Mortgage + Tax + Ins + Vacancy + Prop mgnt + Capex). Leaving Utilities and outdoor maintenance to tenant.
Cash Flow is $488/Mo.

Therefore CoC is coming around Annual cash flow/(Down payment + Rehab + Annual Expenses) = 5376/47224= 11.38%

Is that correct or am I missing something here?

Also, If I plan to Refinance it for ARV 155K. How does my Cash on Cash calculation comes up after ARV into picture?

Any guidance or help is appreciated.

This would mean that I have to rent out my current place on lease without having 2nd home confired right?

Thanks Michael and Jack. 

Devin, would like to hear more about this as you are from CT.

Eric: Planning to take 5% or 10% down payment as my 2nd home but making it as primary resident. Planning to use rent from 1st home to offset 2nd home P&I but can this be stated to my lender during loan process?

Hello guys, I purchased a townhouse last year and planning to take another property this year. Plan is to shift in new home as primary residence and make 1st home as rental. Already my DTI is 43% as per my gross monthly paycheck. If I take HELOC to buy another property, then my current lender says "May face difficulty during your 2nd home purchase if DTI goes above 50% (1st mortgage + 2nd mortgage + HELOC + Other loans payment contributes to 43%)".
I plan to buy another property, around close to 150K-250K in CT area nearby so can look over 1st property as well. Not sure what are my options if I want to proceed further in buying 2nd home without having DTI issue with lender.
Any suggestions would help.