All Forum Posts by: Matthew Kwan

Are you planning to do a HELOC on your primary or investment property?

@Albert Bui @Carlos Valencia

House hacking with FHA is the ideal way with min down payment. However, anything above 3-4 units you would also need to consider passing the Self Sufficient Rule (SS Rule) where your projected gross market rental at 75% has to be greater or equal to your monthly PITI. The SS rule only applies to 3-4 units when using FHA but if it's single family or duplex, it will not trigger the rule. As for conventional for single family residence, you can go as low as 5% down. As for 2-4 units you would be expected 10-25% down depending on the amount of units. However, the mortgage insurance are usually lower than FHA @Albert Bui @Carlos Valencia

If your properties are pure for investments, I would suggest as soon as possible so that you can have legal shield protection to protect your personal name. I also heard something regarding "Holdings LLC" where only 3 states (Idaho, Nevada, New Jersey) that you can link your LLC into those states where it's harder to trace/pursue towards your personal name. Please fact check and hope this help to spark some ideas.

@Albert Bui

@Albert Bui @Carlos Valencia

It depends if you are mortgage liable on that house. You have to look into your mortgage note to see if you are legally liable of paying the principle, interest, tax, insurance of the house. As some borrowers are only held liable to pay for the tax and insurance part of the house if he/she is on the title.

@Albert Bui @Carlos Valencia

I would reach out to the city water and sewage company to clarify or do an internal investigation with your tenants because you never know what could've happened? However, $4200 jump seems to be quite bizarre

 @Albert Bui @Carlos Valencia

The contract i am assuming is the "buyer's agent agreement". They just want to make sure that you are 100% loyal to them, but I wouldn't sign it until I find a property and ready to make an offer @Carlos Valencia @Albert Bui

House hacking with FHA is the ideal way with min down payment. However, anything above 3-4 units you would also need to consider passing the Self Sufficient Rule (SS Rule) where your projected gross market rental at 75% has to be greater or equal to your monthly PITI. The SS rule only applies to 3-4 units when using FHA but if it's single family or duplex, it will not trigger the rule. You can also consider single family and rent by the room. Usually it'll be 5% down payment but the mortgage insurance is lower than FHA @Albert Bui @Carlos Valencia

Yes you will need a business EIN to open a LLC and business account. It took me 1-2 months for the EIN number last year, as the IRS only receives via mail but not email nor phone call. It was painful but excited at the same time @Albert Bui @Carlos Valencia

If you are considering to transfer funds from your brokerage account, you would have make sure to document all your funds by showing funds leaving from your brokerage account and entering into your bank checking/saving accounts. In other words, if transactions were made 50% more than your monthly income, you will need to explain/address the funds via letter of explanation @Carlos Valencia @Albert Bui

If you are buying a primary residence 1-4 units you are entitled/required to live one of the units. In your scenario, you did not need to convince the tenant as you would just have to provide them sufficient notice for the tenant for accommodation to move out.

@Carlos Valencia @Albert Bui