All Forum Posts by: Matthew Kwan

HI SAM,

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'll either have to convert the house into a legal duplex by getting permits from the city or you install an electrical panel split so that you can track each units/bedrooms of their power usage.

In terms of lending world and being to use the rental income, the property needs to be a legal duplex meaning title must be shown as a multifamily and not a single family in order to use the rental income separately.

@Albert Bui @Carlos Valencia 

I started off from House hacking by putting 3.5%-5% down payment and rent out the other vacant rooms/units just to lower my mortgage payment. You just have to make sure once you vacate your primary and converting into a rental, how would your DTI (debt to income ratio) be effected. Since lenders can only lend up to 50% of whatever your gross income is assuming no debt.

@Carlos Valencia @Albert Bui

If the goal is for asset protection then you would want to form a LLC and subsidiaries if you have more properties. As for trust or living trust, it's more towards the protection of your future beneficiary so that the estate tax (depending on each state) won't be taxed heavily upon the trustee's death.

@Carlos Valencia @Albert Bui

I am not a CPA, I am an investor myself and mortgage broker that focuses on helping with investor on expanding their portfolio in real estate. Oftentimes, we would work closely with CPA to make sure how our borrower's taxes can be filed that would save them from paying taxes, but also making sure they can qualify in a lender's perspective.

You would want to make sure your first few deals has an acceptable of return in order to lower your DTI and expand your investment portfolio in Real Estate. However, you could still have - cashflow on paper, but still break even or potentially have + cashflow on your taxes. Lenders will use your tax returns schedule E to calculate your monthly rental income. The goal is to show that you are not making money in the lens of the IRS, but also making sure that you can + cashflow in the lending world.

@Albert Bui @Carlos Valencia

HI Saed,

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.

On the other hand, you could also look into multifamily units where you can live one of the unit and rent out the other vacant units with as little as 5% down payment. The main hurdle that many of our borrowers face are the income aspect of it, especially expensive markets like the West coast. However, it allows you to use the vacant rents of 75% market rent as an alternative income to help the borrower to qualify.

Happy to connect and assist you in your real estate investing journey. @Albert Bui @Carlos Valencia

It needs to be in livable condition in order to use primary conventional loan. If rehab is needed, you can either use conventional rehab loan to finance your rehab costs or open a line of credit on a property that you may have then use that line of credit to fund your rehab expenses.

@Albert Bui @Carlos Valencia

HI Jake,

It is within 60days upon your close date. 

There are multiple ways to master the concept of house hack. You can 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

@Carlos Valencia @Albert Bui

HELOC is just a line of credit like a form of credit card that allows you to tap into your equity at your convenience and the consumer can always payoff the line if they wish to get the full line amount. @Carlos Valencia @Albert Bui

There are multiple ways to get funding to proceed with your rehab. You can trying getting a HELOC on one of your property (best on primary) then you open a line of credit to use those funds to cover your rehab costs. Alternative way could be purchasing this property with normal conventional rehab loan, which is a standard 30 year fixed loan + rehab funds being funded up to 95% LTV. @Albert Bui @Carlos Valencia