All Forum Posts by: Miles Fulton

The rule isn't there to prevent house hacking. I believe it's more for established "housing" ie a caretaker that has elders living/renting in rooms, halfway/sober living units, things like that. They don't want to foreclose on a home that'll impact other residence. At least that's how it was explained to me, haven't dug in to it to confirm with my own research but makes sense. 

I know one situation when a college professor owned a house near campus and other professors had signed contracts for renting the other rooms. They would stay based on their teaching schedule so they didn't have to deal with traffic. He had documentation of the renters being consistent for 7+ years and the lenders still wouldn't accept it. 

Most lenders will not use rental income to qualify if the property is owner occupied unfortunately. So as far as utilizing the property as leverage for the loan, you are better off renting elsewhere and collecting more rent. I know that's not the principal of house hacking but that's probably what you'll find. Lenders will happily use future rental income but not when it's considered your primary. 

Hello Daeun,

Couple of options available and it comes down to what you prefer and what fits your situation. The options already mentioned are the most common. Pull equity out of current properties, use that to secure next property. Conventional loans might start to get tricky as you grow. You can qualify for a loan based on the income of the new property you are buying. If the property is cashflow positive you can qualify pretty easily. I am So Cal based and just starting with a Mortgage Lender, we specialize in investor Programs. It's my way of learning more about REI so I am more than happy to share any info. If you have additional questions or would like more info feel free to PM me!

This article came out yesterday from the OC Register stating 51% of properties purchased in the area were bought by investors. Yet "experts" "influencers" and RE agents that I have heard from have said to steer clear of CA for investment properties. Curious to get more opinions. 

What am I missing? What are your thoughts on CA REI trends?

The most common options are Hard Money/Private Lender or Non-QM. There are pros and cons of both. @Nick Belsky  gave me some great info for Non-QM. You can find his in depth overview on my post. It's my only post so it should be relatively easy to find :)

Hello All,

As I learn more about Non-QM and the Investor options available from these lenders my curiosity increases for a few reasons. Other forums on here (that I've seen) have not been positive. It seems like a good option and some of the companies that offer it have additional "investor" focused programs (Bank statement and cash flow based mortgage and jumbo loans, solid cash out refi programs). If you have experience with Non-QM, what was the downside/turn-off and what are the advantages? What other methods do you prefer? Any and all info appreciated!