All Forum Posts by: Matthew Kwan

 Would this apply for rental properties like multifamily units, if the owner moved into one of the unit for 2 years and sell it. Would that waive the capital gains after selling the property? 
@Albert Bui @Carlos Valencia

HI Jeremy, yes you would want to have a separate lease to each tenants if you are renting by the room. If you are looking to repeat the house hacking process by vacating your house every year and also being able to use the rental income, you would want to make sure to get the lease fully executed and lease term would be minimum 12months. The lender will be able to use the whatever the gross rent from the lease of 75%. As they use the 25% for vacancy factor.

@Albert Bui @Carlos Valencia

HI Mike,

It really comes down to what your long term goal on investing real estate. You want to invest just to have a place to live and potentially offsetting your mortgage payment by renting out the vacated rooms or having x amount of cashflow in the future? Looking into single family houses or multifamily, as there is an actual land that you own and potentially build ADU/DADU in the foreseeable future. However, if you build the ADU and not condomise it, they appraisal will only view it as a SFR and give you the rent as SFR at 75% if lease agreements is being used. If you want to maximize your max rents then if might be a good idea to condomise it so that you can get rents as two separate units. Since last year of November, Fannie and Freddie has allowed borrowers to put min 5% down for conventional loans and being able to invest multifamily up to 4units.

@Carlos Valencia @Albert Bui

HI Jay, 

I am an investor and lender in the Seattle area as well. It depends what you are trying to achieve in your real estate investing strategy right? If you are looking for cashflow opportunities + add more value, houses in the South are the area you should focus. If you want more residential and stepping away from the tenant law of King County, perhaps you can focus Snohomish county like Edmond/Lynwood/Everett etc. As for high appreciation, that would be on the east side of Seattle. Neighborhoods like Bellevue/Kirkland/Medina/Redmond.

@Carlos Valencia @Albert Bui

You can always do a HELOC on you primary up to 90% LTV vs an investment property only up to 75% -80% where rates are also slightly steeper.

@Carlos Valencia @Albert Bui

If you do cash out refinance it would allow to only get to 75% LTV around the high 7s with some points, they would still require to be 1st position. As for HELOC allows it be in 2nd position and it allows you to get up to 90% ltv for primary. However, rate would be prime + index + an additional +2% for the shock factor just to qualify, but you can draw the funds whenever you want vs cash out where you have to draw all the money after closing.

 The question is what are you trying to use these funds? What's your main objective that you are trying to achieve?

@Carlos Valencia @Albert Bui

HI Hernan,

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

HI Michael, you can do STR/MTR/LTR but it depends the location and time that you are willing to commit in terms of managing. If the house is located in prime area, perhaps STR would makes sense with some tax loopholes that you can achieve and save. As for LTR, you can save time and focus on other tasks, while the income is stable but the opportunity cost could be lower when you're charging a flat monthly rent.

@Carlos Valencia @Albert Bui 

Would you mind sharing more about your hurdles and struggles on #3. I would assume non-profit organization would always pay to the landlord, but some organizations would pay quarterly.

@Carlos Valencia @Albert Bui

You can always start off on house hacking a multifamily in MI 1-4 units with min 5% down or 3.5% down for FHA. This will allow you to acquire more rental units and also being able to use the vacated unit rents at 75% to help your debt to income ratio DTI.
There is a FHA 100 mile rule if you do plan on using FHA on your 2nd house hack. The fha 100 mile rule will be triggered whenever you try to vacate your current primary and also trying to use the rental income to qualify.

However, this 100 mile rule can be exempted for the following rules

1. Relocation
2. Increase in family size
3. Vacating a joint owned property
4. Non-occupying co-borrower

If you are not trying to use FHA on your 2nd house hack, you can use conventional and the rules that I mentioned above will not be a concern.

@Carlos Valencia @Albert Bui