All Forum Posts by: Matthew Kwan

 The underwriting process will take place once you are in contract meaning your offer being accepted from the seller.

You can always open HELOC or line of credit from your primary house or non primary house, assuming you have sufficient equity and income to qualify. You can obtain up to 90% LCTV for your main primary house that you are living or 80-85% for your investment properties. Rates are typically higher than a traditional cash out refinance, however at least you are not getting the full loan amount + you have the flexibility to draw/tap in the money whenever needed.

@Carlos Valencia @Albert Bui

 Once you add value or willing to add value, you will be able to improve the valuation of the house, and how would you know the exact value? It's by ordering an appraisal. Based on the appraised value from the appraisal, you will be able to liquidate x amount of money depending if it's a primary or non-primary house 

HI Shubham,

Typically lenders will lend up to 50% of your total gross income assuming no debt. The formula is pretty straightforward Total expenses/ total gross income = cannot exceed 50%. Typically I would run a stress test to assure what my max purchasing/borrowing power would be because there are multiple factors that could influence your borrowing power such as house market prices, rates, income, liabilities. It is important to have someone to fully underwrite your file and run multiple scenarios to assure what your best route would be @Carlos Valencia @Albert Bui

You have to negotiate with them. I ususally dont pay any management fees if the units are vacant. They only get incentivized once it's occupied 

yes in theory turnkeys limits you to create/add value .If you do see a deal that makes the numbers work, you should still consider the deal and take advantage of it. The reason people seek for distress properties, so that they can acquire the property at a low price and renovate the house aka "value add" so that they can increase the property's value and create sweat equity, then pulling the money out or cash out we call out so that investors can liquidate their money and reinvest on the next project @Albert Bui @Carlos Valencia

It depends what you need at the current moment? If you plan on refinancing it in the short/long term, perhaps taking the higher rate and take the $2300 so you can re-allocate the money on your repairs or closing costs for the refinance. However, if you plan on sticking the the loan and you do not anticipate rate would drop below 5.7% then option B would be the ideal route.

@Carlos Valencia @Albert Bui

HI Steven,

You can start househacking by living 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 Georgina,

Im also based in Seattle, WA as well and will be happy to connect. 

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

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