All Forum Posts by: Matthew Kwan

We have products that offers cash out refinance for primary residence or 75-80% for non primary depending on the property type.

@Carlos Valencia @Albert Bui

Traditional route could have more exposure to the market and could potentially sell for a higher price, however there's a premium service that needs to be paid to the agents. It could be 2-3% to the seller or 5-6% to both seller's agents and buyer's agents. Also, you would most likely have to rehab the house in order to be presentable and list it to the market.

If you pursue the wholesaling route, you could potentially wholesale the deal to a potentially investor, but they would typically negotiate and lower the selling price @Carlos Valencia @Albert Bui 

Hi Isaac,

The best way is to attend local meetups and connect with people within the community. You can always start off in real estate by acquiring a property as a primary residence. You can put as low as 3.5%-5% down payment and rent out the vacant units to offset your mortgage as we all call it Househack @Carlos Valencia @Albert Bui

The word difficult is subjective. It really comes down to what you value in the short or long term.

Do you value cash flow or appreciation more?

Numbers are more doable in the Midwest where you can acquire units for a lower cash and might get 1% or more of return. However, the rents are slightly lower and could potentially wipe out your monthly cashflows with one major repair.

As for higher appreciation market like West/East Coast, it's more expensive, but rents are higher due to a strong labor market, there will be a certain amount of demand for those markets, but the downside is that you will need to be creative by adding more values for the property. It could be adding an extra bedroom, parking space, or kitchen where you can maximize the potential rent of the property.

@Albert Bui @Carlos Valencia

HI Maggie,

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 Emmanuel,

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 and will be exempted.

@Carlos Valencia @Albert Bui

HI Kerli, 

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 Michael,

The best way is to attend local meetups and connect with people within the community. You can always start off in real estate by acquiring a property as a primary residence. You can put as low as 3.5%-5% down payment and rent out the vacant units to offset your mortgage. @Carlos Valencia @Albert Bui

I wondered are these numbers due to housing pricing of the neighborhood being higher or the actual demand itself, since Bellevue is considered one of the higher pricing cities in WA.

@Carlos Valencia @Albert Bui

Yes there are products that can up to 80% LTV for DSCR with 6 months reserves. Typically rates are 0.5%-1% higher than the full conventional loan, however the beauty is that it requires less documents and quicker close. @Albert Bui @Carlos Valencia