All Forum Posts by: Matt Nico

@Joanne Tsai

Id look into St. Pete as well if you are dead set on investing there. If you need contact info for the area let me know. I know a good broker there.

-Matt

I have been following this thread since its inception early this year.

Has anyone actually gotten a HELOC on an investment property? A lot of you said it was in progress but nothing actually closed.

 Steve,

You are right, I did make a mistake. I am referring to an FHA, NOT a VA. My apologies.

No worries man, Good luck. My market in Florida is probably much more flexible than you in NH. Most lenders end up counting the room rentals. 

My advice to you if you need to get a loan is to create a lease where everyone signs it but it allows them to break it individually with a 30 day notice or something like that. So your home will still be a rent by the room home, but to a lander they will see 1 lease only with everyone on it. Dont take my word for that legally though. Do your research for NH as to whats allowed.

Sara,

If you are living in a market where houses are appreciating very quickly, I would not use a VA loan. Instead of putting 3% down on a VA loan, put the 5% down on a conventional loan. The reason is that on a VA loan, PMI, or Private Mortgage Insurance, sticks to the loan for the full 30 years. With a conventional loan, it drops off by law after you gain 20% equity in the home. I personally like that extra $150-$200 in cash flow that I get with all of my properties because the PMI is already gone.

I hope this helps you,

Matt

Marlon,

After reading this post I quoted and all of the other ones below, it sounds like you are just creating an excuse to not invest.

If you are planning on flipping houses in your area or doing something where you rely on the price of the house to not plummet in a short period of time, then I would say don't invest.

If you are buying to hold properties long term and rent them and they cash flow, then you are literally wasting your time by not investing. I am paying a higher price for properties now than I have ever been. And hey still cash flow and they are still good investments.

Jump in now. The water is always fine :)

Happy Housing,

Matt

 Cole,

Some lenders have problems with this strategy since they have no idea about it. When a lender asks me "How much do you collect in rent" and I tell them " I collect X amount, but its from 5 different people renting by the room." Some lenders find that to be really weird, and some are okay with it. The best thing you can do to yourself is to make sure rent every month is consistent. The longer you have had the home being rented by the room and you can show proof, the better off you will be.

-Matt

Muaz,

I do a lot of different handyman-related things if you wanted a cheaper option than a big company. I can usually diagnose with a picture instead of you paying a $100 trade fee. I do a lot of work for surrounding investors along with my own rentals. Let me know if you need anything.

-Matt

@Vicki Clark

I agree with everything you said. I dont like the multi units in Orlando. Parking always sucks and the units are usually small. People that i know hate living in stuff like that.

I do exactly what you said with SFH. Once i rehab them i get pretty strong rents.

@Vicki Clark

What kind of properties are you finding? I see a lot of SFH's that cashflow pretty well in my area but barely any multi units available.

-Matt