All Forum Posts by: Derek Brickley

Finding someone who understands your niche and goals is definitely going to be valuable for long term growth.  Lots of us boring lenders on BP, but I'm sure you can build a great team haha

It is best practice to wait 6 months and most lenders won't and shouldn't do it before then.  If you refinance or pay off the balance before then, the lender will give back everything from helping you.  Not just "commission" but the underwriters, processors, the company as a whole is forced to repay everything.  Considering you are one month out, recommend starting the process now and set your closing date just passed that 6th month.  

Totally agree with above haha if it would be helpful to get an actual estimate feel free to reach out

Perfect, sounds like the commercial side will be all set.  If the houses are in your personal name and not a business, then we would most likely need to count those.

Good question, TECHNICALLY that should all be counted in your DTI. Depending on how your properties are held will depend on what (if any) percentage needs to be counted. If the property is held in an LLC and the P/L runs through a business on your taxes you wouldn't get hit with it because the business is paying those expenses. Can't say for sure, but definitely ways to work around it if needed.

Hey Joel!  Depends on the situation and everything (and I might be biased), feel free to reach out though if we might be able to help!

Hey!  When I graduated college I went through this exact tradeoff... was living rent-free or I could househack and own a place that builds equity, but I would need to put into it every month.  Cash flow on a househack is near impossible, the best thing to look at will be if you were to move out would you cover costs.  My take - find a light value add property and househack.  While you're doing repairs on your unit, treat it like a live-in-flip almost.  Then when you finish repairs, depending on the time frame you would have lived there as a primary residence at which point move back with parents and rent that unit for even more because you just rehabbed it.  Yes there will be months you will be "down" because you'll be paying to live there but it would be the cost of acquiring the property and will help you start your portfolio sooner rather than later.

Hey Glory! We aren't hard/private money but we are right here in AA off Ellsworth. Ann Arbor is definitely a huge area for DSCR investors, so if it might be helpful to get a local take of some options for that feel free to reach out.

Hey Ralph, unless you refi and pay points chances are refinancing does not make sense.  Your total costs would outweigh any benefits monthly for that.  Was looking at projections today based on rate cut cycles and chances are we could see rates drop into the high 4's/low 5's in the next couple of years on average (that's based on previous cycles and a decreasing spread between the 10yr and mortgage rates).  The biggest key to you doing a refinance will be to target your monthly savings.  Again, right now chances are the costs eat away any potential savings per month.  However maybe you could save $100 a month if rates came down slightly.  Is that worth it to you?  I wouldn't have an answer.  At that loan amount and given your rate, we would generally target $200/mo in savings.  Yes you could get something in the low 6's right now, but the points you would pay for that would eat up your savings.  I'd wait to see when you were closer to 6.325% with no points.  If that's the case, the refinance would only cost a few thousand.  Just like with your purchase though, who you work with and the strategies they use for you will make a large difference going forward.  Not sure exactly where your rate/options would be right now, but feel free to reach out if we might be able to help!

Haha that's tough. The FHA househack strategy is fairly common and pretty straight forward, a lot of people have been using this and/or the conventional househack (myself included) so have been on both sides of the table. Feel free to reach out if you have questions or feel we might be able to help.