All Forum Posts by: Derek Brickley

Hey Gabriel!  I had to figure that out myself as well a couple of years ago haha as already mentioned, first things first, make sure you feel financially stable and secure.  Taking on a house hack deal is a great entry point but still (what feels like) a big first step.  

What I did when I graduated from college is stabilized my income/finances for about a year while I saved up and started doing market research.  At that point, I felt comfortable moving forward on house hacking.  I did not rent, though, mainly so that I could build up more savings for down payment and any rehabs/repairs.  It's worked out great for me so far, I just moved out and rented the other unit to get more cashflow.  Whether from the investor or lender side, happy to go into more details if that would be helpful for you. 

Bryan probably has the best perspective here ^. You can get a rehab loan through Fannie and that will probably be the best way to go about it. DSCR doesn't require the property is rented, but with the loan amount at play that would not be an option for everyone I've heard of. So that or hard money possibly.

Is this rate/term or cash out?  Largely depends on the full situation and value, but feel free to reach out if it would be helpful to look at some options. 

Hey Brian!

I second what has been said already. If you have a lower rate on your current FHA loan, then this is probably not recommended. You could possibly drop the mortgage insurance, but the difference in rate would most likely eat up those savings.

If you did refi out of the FHA, yes, you could use it again. Remember, though, you can now use conventional with 5% down.

A lot of people we first speak with favor the idea of a 15 year because they pay less interest over the life of the loan, and it of course cuts the term in half.  What they tend to realize after the fact though is the higher payments are now mandatory and the monthly cashflow is cut so that you're mainly relying on equity which although likely isn't always guaranteed.  Instead, leaving the 30-year note on there and paying the difference towards principal will cut down the term of your loan, and you aren't forced to pay those higher payments.  15 year notes aren't as incentivized as they used to be either so the rate benefit is negligible.  

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!