All Forum Posts by: Marlon Johnson

Exactly what it sounds like which is why it doesn't sit well with me. Thanks for the direct response.  

I've heard that for your first investment property, it is better to not disclose to the lender that you are actually purchasing an investment property, but to tell them that you are purchasing a primary residence or second home. The thought behind this is attempting to get more favorable loan terms as it relates to interest rate, down payment, etc.  

Does anyone have any insight in this area? 

 When you say 9 apartments, do you mean individual units, like a condo units or do you mean apartment buildings? If you mean the former, what challenges have you encountered. A friend of mine that owns a few rentals strongly recommended against owning condo units for various reasons but I am realizing that everyone has their own niche. One will love something while another hates it. 

 Seems like it's easier that way, if you have the cash to do it. Definitely lots of possibilities and I am realizing that more the more people I listen to on the subject. Thanks for your help!  

 So I am thinking to go in with cash for purchase and repairs, get a tenant under lease, then go to the bank with solid numbers and pull my cash back out to do the same thing again. Definitely more risk, as stated by Frank but I have time on my side because I won't have a mortgage to pay initially. I can take my time repairing and vetting tenants without having to worry about carrying a mortgage. I have a partner that can put some cash in the pot, but we don't want to be cash poor either, which is one of the reasons that it may be better using other people's money. But as I stated initially, the plan would be to put a mortgage on the property after rather than using a mortgage to acquire the property. 

Nicholas, how did you get started? How did you acquire your first property and how many do you own now? 

When hearing discussions around BRRRR Investing, I never seem to hear many details on what options are available for purchasing the first unit. Would it make sense to pay cash for the first unit, then refi after acquiring a tenant? It seems like a traditional lender would be more inclined to do a cash out refi on a unit owned outright with a paying tenant. Thoughts?