All Forum Posts by: Matthew Kwan

HI Pinny,

You can always start off by house hacking meaning you live in one UNIT or ROOM and renting out the other vacant units/rooms to offset your monthly mortgage payment.

There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible. Try looking into zillow/Redfin and see what your potential rents you can get near the neighborhood by filtering the bedrooms/bathrooms of the intentional property that you are planning to buy. This will allow you give a reference point on how much potential rent you can receive. (Max vacated rents - your monthly mortgage payment) = +/- net cashflow. Happy to connect and assist you in your real estate investing journey.

Happy to connect if you are interested to expand your portfolio

@Albert Bui @Carlos Valencia

Always ask for referrals or try joining a well known group within the Seattle Community called 

WAREI (Washington Real Estate Investor) 

@Carlos Valencia @Albert Bui

What are some responses are you getting? Are you trying to use FHA on your first property or you are planning to move out from your current primary and trying to acquire the 2nd property? This could trigger the FHA 100 mile rule however with a few exemptions.
Indeed, FHA allows you to put 3.5% down payment to invest in 1-4 units. However if you plan on buying 3-4units, there is a trigger rule for FHA, it is called the self sufficiency test. In order to past this SS test, your appraised market gross rental income at 75% has to be more/equal to your monthly mortgage payment (PITIA). These are something to be considered. Feel free to DM and we can talk more about it @Carlos Valencia @Albert Bui

HI Renee,

Try looking into zillow/Redfin and see what your potential rents you can get near the neighborhood by filtering the bedrooms/bathrooms of the intentional property that you are planning to buy. This will allow you give a reference point on how much potential rent you can receive. (Max vacated rents - your monthly mortgage payment) = +/- net cashflow. Happy to connect and assist you in your real estate investing journey.

@Albert Bui @Carlos Valencia

Indeed, you can definitely househack in a multifamily by living one unit and renting out the other vacant units. The good thing about househacking a legal multifamily unit is that lender allows you to use the vacated units of 75% market rent as an income to offset the potential current mortgage. You can put a little as 5% down payment for conventional or 3.5% for FHA.

Alternative way, is to acquire the 2nd property as an investment property with conventional, while putting 15%-25% down payment. Down payment can be higher than primary, but the good thing is that you won't need that much income to qualify because lenders can you 75% of the market rents for the units of the property. Imagine the 2nd property is a 4plex, each unit can be rented $1500/unit of 75% =$1125 x 4 units =$4500 worth of income to offset your that 2nd property.

@Albert Bui @Carlos Valencia

HI Henry,

You would want to make sure your county allows you to condomize it so that you can two separate parcel numbers for the main house and the newly built DADU/ADU so that you can get appraised separately. However, based on regulations, only Seattle and San Jose allows you to have two separate parcel numbers. There are rumors that it will soon be for multiple counties in CA in June 2025. However, it's important to have your plans ready upfront so that you can execute it full speed when the time comes. @Albert Bui @Carlos Valencia

HI Megan,

Indeed, you can definitely househack in a multifamily by living one unit and renting out the other vacant units. The good thing about househacking a legal multifamily unit is that lender allows you to use the vacated units of 75% market rent as an income to offset the potential current mortgage. You can put a little as 5% down payment for conventional or 3.5% for FHA.

Alternative way, is to acquire the 2nd property as an investment property with conventional, while putting 15%-25% down payment. Down payment can be higher than primary, but the good thing is that you won't need that much income to qualify because lenders can you 75% of the market rents for the units of the property. Imagine the 2nd property is a 4plex, each unit can be rented $1500/unit of 75% =$1125 x 4 units =$4500 worth of income to offset your that 2nd property.

@Albert Bui @Carlos Valencia

Assuming it is conventional, the max seller concession can only be 

3% for less than 10% down payment 

6% seller concession 10%-25% down payment 

9% seller concession for more than 25% down payment

@Albert Bui @Carlos Valencia

You can take advantage on your VA benefits with 0% and perhaps acquire a property as a primary residence + renting out the vacant units out to offset your mortgage payment. Then, repeat the process every 1-2 years! However, your first 1-2 deals can be crucial and foundation for you to acquire more properties that can actually cashflow or net + so that you won't max out (not be able to qualify) on your next house.

@Carlos Valencia

@Carlos Valencia @Albert Bui

HI James,

Indeed, you can definitely househack in a multifamily by living one unit and renting out the other vacant units. The good thing about househacking a legal multifamily unit is that lender allows you to use the vacated units of 75% market rent as an income to offset the potential current mortgage. You can put a little as 5% down payment for conventional or 3.5% for FHA.

Alternative way, is to acquire the 2nd property as an investment property with conventional, while putting 15%-25% down payment. Down payment can be higher than primary, but the good thing is that you won't need that much income to qualify because lenders can you 75% of the market rents for the units of the property. Imagine the 2nd property is a 4plex, each unit can be rented $1500/unit of 75% =$1125 x 4 units =$4500 worth of income to offset your that 2nd property.

@Albert Bui @Carlos Valencia