All Forum Posts by: Jim Blackburn

Buy your first 4 unit as fha primary residence. It''s the only time you will get to buy and control 4 units with just 3.5% out of your pocket.  After that you will need 25% everytime you purchase a multifamily.  jim

Make the 25% down payment requirement wit the 62k from the HLOC. Keep your cash hand on for emergencies and opportunities.  Keep in mind your hloc payment will go up if rates rise since it's variable.  Jim 

My mother lives in Warren.  Typically when doing major reno work, a certificate of occupancy is required by the city.  If the work is not major, and was done in a "safe work manly manner" then you can get away with financing with Fannie/Freddie without the city signing off, as long as appraisers puts those comments in the report.  Let me know if that answers your question.  

I had a deal like this in the past in Florida where took 65 or 70% cash out of 4 free and clear homes under 1 blanket loan.  This sounds like a similar situation.  What is the value of each property and how is owed?  

@Account Closed  - Also, non-warrantable condos. all the lenders that I know of will require 20% down for primary residence and 40% down if it is investment. ~ JB 

@Ben Kirchner - I know of a 3 good lenders who specialize in non-warrantable condos. Not supposed to promote in forums though. PM for info if you like.  ~ JB

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HOW TO MAKE A PERSONAL INTRODUCTION: If you can think of anyone who might be thinking of buying a new home and who would love to get more information, simply send an email to [email protected] and copy the person you are introducing. If your Personal Introduction calls us instead, please make sure they mention your name so we can show our appreciation. Best number is 773.234.2584.

Let's make it a great year! 

Jim Blackburn Mortgage at Guaranteed Rate

Ralph Naval Welcome! Nice to e-meet you Ralph Naval One of the best ways a new investor can get started, in my opinion is by purchasing a 4 unit property as their very first purchase. LA County ... Here the county loan limit for a 4 unit property is 1.3m. That enables you to buy and control 1.3m of real estate with just 46. The seller can cover the closing costs & escrows. Plus we need to have another 3 months in reserves. Call it 18k.. So all together you need about 70k total saved right now. We live in one unit, and rent out the other 3. In some cases the rents from 3 may be enough to cover the living expense in unit we live in. In most cases, the rental income will make our cost of living in our unit much cheaper than it ever would be if we bought our own condo or single family house. This is an FHA loan. Typically you can only use FHA one time. Unless you have a really good letter of explanation that details the reasons why you are moving out of your current primary and into a new house using FHA a second time. (Ie. having a baby, moving to other side of town for job, etc.) If the exception is granted, then we get to use FHA twice allowing us to control more real estate with only 3.5% out of our pocket! Where many investors make a big mistake, is buying single family or condo first... then trying to acquire a 4 unit later. It's much more difficult to convince the underwriter that you are moving out of a comfortable private space , and into a building shared with 3 other families. Then you are stuck putting down 25% to acquire that 4 unit as investment VS the 3.5% FHA as primary residence. Long story short.. by purchasing the 4 unit as your first property, you're able to acquire, control, and benefit from the appreciation of 4 units with just about 46k down (3.5%) vs about 325k down payment (25%) later. How long would it take us to save up 325k? Plus, when you buy and investment, you also need 6 months cash reserves as well. Super happy to have you in the group and I’m excited to continue talking!