All Forum Posts by: Lorenzo Prieto

Hey Robert great question! So I know there are a bunch of different creative ways to make deals like this happen. Personally, I'm mainly a conventional lender so I would direct you to speak with a lender and see what you qualify for. There are a lot of loan programs out there that can assist you to purchasing your first house hack deal with little money down. Of course you would still need to qualify with your credit, debt ratios, and other things but first step would be to do a little research on loan programs or better yet leverage a lender and have him/her do some research on what loan products would work best for you. 

First off congrats on your first investment property, I'm sure it's appreciated greatly! As I'm sure you are aware putting your investment properties in a LLC limits your personal liability in the event that anything goes seriously wrong on your property. I'm not an expert in this area by any means however from a lending standpoint you would be required to get commercial lending and not personal lending. Since the property will be titled under your business it would need to be a commercial loan which sometimes requires a more paperwork, higher fees, and possible higher interest rates.

Check out this great post written by Whitney Hutten on LLC's.

Hey Jason I'm not local to you but I just closed on my first house hack deal last month and as a lender I've help many through the process of closing on investment properties and owner occupied properties. I'm still learning myself but I love it. It sounds as though we may be able to learn from each other since we have backgrounds in different fields. I'd be happy to set up some weekly or monthly calls with you in regards to any questions you may have. I'll message you. 

Good morning Michael! I'll shoot over my current ARM rates. We've locked a lot of ARM rates recently especially with the rate dip.

Good morning Sarah! Great question. I was in a similar situation asking if I should wait to buy. My ultimate decision was to move forward with a purchase and do a house hack in my local market. The quote I kept bouncing around in my head was "Time in the market is better than timing the market". What I think you should do now is touch base with a realtor in that area and ask how the market is doing, leverage their local expertise. Like I said I just recently purchased a home and will be house hacking the property. As you mentioned cash flow is a little harder to find right now but if you get in the game what you will do is benefit in 3 other areas, appreciation, tax benefits, and principal pay down. Once rates go down you can do a refi at a lower interest rate and you might be cash flowing then! 

This sounds like a good deal especially if you can get it under asking price! If you are currently paying $1,600 in rent now you would greatly reducing your living expenses which would allow you to save more for investments in the future! I agree with Caleb on doing inspection and appraisal and making it contingent on those to protect yourself in the event something major comes up. Also, I'm not sure what interest rate and exact money down you are planning on putting down but the mortgage payment of $3,900 seems to be a little lower than what I calculated. I'd check to be sure what your mortgage payment is going to be.

This really depends on how much you are planning to utilize. Will you need the full 208k or can you make your investment work with the 171k? It's 1% difference in the rate which and would equal to about $321 difference in monthly payment if you utilize the full amount of each loan at their respective interest rates. I would also consider the cap rate for each of these rates. How much can they go up per year and over the life time of the loan. 

I'm not familiar with a rule of thumb used to estimate the cost of insurance. There is a lot of factors that go into homeowners insurance premiums especially if it's an investment property. I'd say your best bet would be to just hop on the phone with a insurance agent and get a quote for a property that you are interested in. Nothing wrong with getting a few quotes. That would give you a good idea. 

Hey welcome to Bigger Pockets! You've picked a great community to learn from! I'm a lender from Colorado and would be happy to help you with any lending type questions. Good luck!!

Hey Andrew, great question! The answer is no. They do not need to be first time homebuyers to partner up with you on a fourplex deal. The FHA loan is often marketed as a product for first time buyers because of the low down payment requirements but first time buyers and repeat buyers can leverage an FHA loan.

Feel free to reach out with any other questions!