All Forum Posts by: Ray Williams

203K and Homestyle can be great ways to finance in the cost of improvements. I can say from having taught classes on these loans that your contractor will be the biggest key to your success. If the agent you work with is not familiar make sure the lender is, so you have someone who can confidently navigate this path for you. Shoot me a DM with questions 

It has been years since, but start with what is important about buying , for you. Will this home be something you use as a ladder to another, or will it be in your portfolio to grow wealth and cash flow in the future. I can say one mistake I made was while buying in great neighborhoods (up and coming) I lost equity on two where we bought on a busier street. So we took hits on the sale, though they were great rentals. As far as when, when you are ready, but if you feel held back identify is it the narrative about real estate or your means holding you back. Define one thing to take action on in the next week towards accomplishing your goal to buy. Whether that is identifying top 3 neighborhoods, driving homes, reviewing your budget etc. Have fun!

 Agreed. There may be PM models out there that are hospitality based that can drive up revenue, and possibly not be 25%+ for you. But ask around your area or look up properties on AirBnB to see who the hosts are. 

 Non-Q rates have been surprising me as well. Have to watch the pre-payment on those of course. 

Tricky with current interest rate environment, as a refinance makes no sense rn. Have you talked to your CPA or analyzed the impacts of it as a rental? (*Meaning reduction to your tax bracket, which may offset - cash flow). Is it in an area you are able to execute as a STR? Or rent by room? It is certainly an interesting position to be in.

Love it. Sounds like you took the first step by making this post. Find one thing you can do rn to achieve that first goal. 

Awesome! I didn't catch if that home is your primary or is a rental. If primary, are you claiming the renal income? It sounded like primary based on what you mentioned above. I am in Denver, not licensed in VA but if you ever want to pick my brain search me up and schedule a consult.

An interesting observation I am seeing rn is investment property rates rivaling second home rates. I have had a few clients lately finance as investment properties and end up with better terms. Ask your lender about this.

Joshua! Welcome to the journey. What is one thing you are doing right now to pull that trigger on your first property?

 Ultimately it will come down to credit and capacity. Your scores will impact the interest rate. The down payment will also affect final payment. Depending on where you live the property taxes and insurance will help or hinder. The positive for you is that we hit the ceiling in mortgage rates at the end of last October, with them being down about 2% since that time. You should be able to get a rate in the 5's.