All Forum Posts by: Sean LeBlanc

my cell phone, it can call all kinds of people to do the work that I can't! 

@Sean Lynch if you meet the income limits, the conventional products Homepossible (freddie mac) and Homeready ( fannie Mae) allow for 5% down on 2-4 unit properties, is a conventional product. The same product allows for a 3% down payment on a single family.

If you google Homeready income eligibility, you will find the income limit lookup tool, where you can enter the address and see the income limit. Certain areas have NO income limit. 

Everyone knows about FHA for multi's but conventional is an option too, this gives buyers who already have an FHA loan,an opportunity to buy another owner occupied multi with low money down.

Let me know if I can help. 

Thanks!

@Zac Kay keep us posted ! Would love to hear how it turns out. Is the lender a portfolio lender of some kind? 

Couldn't tell you about the licensure process, but I know that on the sales side, the key to a successful inspection business is a network of real estate agents and investors.  

99% of the time the buyers are using the inspector referred by their agent. So buddy up with a few agents and you could be on your way.  This will help you on the investing side as well so it is a win- win. 

Here in New England inspection fees are routinely over $500. 

House hack! Look it up and learn everything you can about it.  Many investors get their start this way. 

I know you mentioned your living situation is great, but if you do NOT live in the property, the down payments will jump from 3-5% to 25%.

As others have mentioned, getting pre-approved is a great first step. 

This is an issue all investors deal with on different scales.  Cash flow and D class properties go hand in hand.  However with that cash flow comes the caveat of the properties typically being much more management intensive. 

So if when looking at numbers with a hefty vacancy factor, and a decent reserve fund,  and the "juice is still worth the squeeze" - Then I say go for it. 

Just make sure you have reserves! Buying an old rental,in a bad area, with no reserves, is how you become an accidental slum lord ! 

Agree, find a different lender, you can have 10 financed properties with conventional financing.  You may be running up against an internal bank guideline, where they won't allow more than four with the same borrower,. 

Let me know if I can help. 

First six months- your loan amount is limited to the bottom line of your purchase HUD, so you can get your acquisition money out, but not your rehab.

After 6 months, it will be based on the current value. If not living in the home, you will get 80% of value on a single, 75% value on 1-4 units. 

Let me know if I can help.

Thanks! 

@Chad Mitchell unfortunately residential loan products like FHA are only available on 1-4 unit properties.

If you are looking at 5+ units, you will need a commercial loan which typically requires a down payment of around 25%. 

Let me know if I can help. 

Thanks!

Unless there is a loan benefit that can be achieved by refinancing the loan into your LLC ( usually there is not) then I would look at a trust instead.

Having said that, if you have been making payments on your mortgage for a few years and you have a large servicer, the chance of them invoking your due on sale clause when your note is performing, is almost zero. 

A local bank, different story.