All Forum Posts by: Matthew Brill

VA all the way. If you can cash flow and are in growth mode the lower the down payment the more juiced the return. I will add that I would do a low down payment conventional mortgage (95% LTV) over a FHA loan (less fees and don't have to refi to drop off the PMI).

It will be tough to qualify without a lot income to show but it will depend on the loan size (you might not be able to do FHA 3.5% but you can put more down to lower the loan amount and improve your DTI). Also, if you find a screaming deal that will help your DTI as well. The best way to find out is to find a local lender and ask them how much of a loan you could qualify for. Then you can search your market for price points and know how much money you'd have to put down to get the deal.

The extra $5000 doesn't seem worth it. It would be worth looking into the other terms and conditions but I would probably take the $5000 and flexibility.

It would actually be counter productive to put your house hack in an LLC because you won't get the homestead. This gives you a degree of asset protection (depending on the state) which is the main point of an LLC. What you could do is take ownership in a revocable trust. Then when you move out change the beneficiary of the trust to an LLC.

Just be aware that any commercial lender will not be able to lend on an owner occupant property

You don't have to necessarily find vacant land. I am in the middle of a project in an area with no vacant land, but you can find a property that has higher and best use as a 4plex rather than what is currently there (old SFR in a area zoned multifamily) or maybe a duplex in need of repair on a large lot. You add the knock down cost on top of construction but maybe it's worth it depending on the deal.

I know nearly nothing about construction but I interviewed a bunch of builders. I got a rough idea of their pricing and how they operate. And they are doing all the work with the plans, permits, etc. And we signed a contract for costs so they are taking on the base materials price risk (I'm sure they figured current commodity situation into their bid)

That's really interesting that you're on the supply side of lumbar. Just curious, particularly since you are at the logging level, where do you see upward pressure on price coming from? Retail sellers are claiming they aren't seeing an increase in profit either despite prices going up.

The low stress way to get started would but a property that is more turn key. But also think about what would best fit your goals, time/money status, and your personality.

My approach is reverse engineering my life. Who do I want to be and what do I want to be doing in 5/10/50 years. If you start with the end in mind it will be easier to set your goals and devise a plan to accomplish them. I look at life and set my goals in 4 main areas: family/relationships, financial, health, and spiritual (not necessarily in that order). But if you envision those things you can that prioritize them. Write it all down. Ask why for all of them. With enough intentional thought things will start to fall into place and you can decide what you want to start working on today. The other thing is to get around like minded people and mastermind. These forums are great but you also need people in a more personal setting and that keep you accountable and growing. Happy to talk more if this sounds of value to you.

I would ask around some realtors/investors in your market and see what is standard for the market. Where I am a lot of the rentals are off of the MLS. But you can also find a services that syndicates to all the common sites.

It wouldn't be something you need to tell the bank and it won't have a bearing on the loan. One advantage would be you could get a 5% down conventional mortgage. If you go the 2-4 unit route you could still put down 3.5% with FHA but Fannie Mae requires a minimum 15% down and Freddie Mac requires 5% down if you meet their income limits