All Forum Posts by: John Wright

Hey Alec. I am currently helping my brother purchase his first property with a VA loan in Columbus. This may be the way to go since you can refinance out of VA and get your entitlement back to then use towards the next purchase. So far we have ran into a challenge with a 3 to 4 unit properties. The intel that I have been able to collect is that with 3 to 4 units, lenders will allow you to use current rental income to help qualify for the loan BUT also require 6 months of PITT in cash reserves. I have not been able to confirm if there is any way around the cash reserves but am talking to new lenders every day. Are you trying to buy multi or singles?

0 Votes

Hi Robert! Thank you for posting your experience. It is awesome reading that you purchased the second unit from the same seller. We actually had the same experience here in Cincy so now we always ask sellers if they have more RE that they would consider selling. I wonder how often this happens in real estate.

3 Votes

Originally posted by @Jassen Bowman:

Originally posted by @James F.:

HI Craig & Others,

I am currently owner occupying a triplex that I bought with an FHA 3.5% loan at the end of September 2018. I'm trying to move into another multi-family property and keep the triplex I'm living in now as a rental property. I have talked with a few bankers, and they said that I would not be able to get another FHA loan and that a conventional mortgage on a multi-family property would start at 15% down for a duplex and go up from there for every additional unit up to four. I was wondering if there is a way to move into the next property with a smaller down payment ideal under or around 5%.

Thank you!

Are in a market that appreciates? Have you increased rents? If so I would start asking about a new valuation based on your current NOI.

0 Votes

Originally posted by @Chad Mitchell:

Hi, I'm looking to invest in my first multifamily. It's an older home that's split into 5 apartments. Would I still be able to secure residential financing (HFA, 203k, or standard mortgage) with 5 units as opposed to 4 or less?

Also, any advice on where to start looking for financing? I'm leaning towards a 203k, so that I can I include the rehab expenses. Currently, one unit is rented, but the other 4 units are vacant (owner didn't renew leases for those 4 with intent to sell). My goal is to rehab the other four units prior to renting them out, so I can increase rent and do a potential refinance in a year or two.

If you have equity in your current property you could use a HELOC to fund the down payment of the new property and possibly even the renovation. Good Luck!

0 Votes

Originally posted by @Lamar Jean:

After house hacking for a year, how do one get a second property to house hack?

@Lamar Jean some lenders will now let you use your rent income towards your debit to incom ratio towards your next purchase.

0 Votes

Cozy is free to use and handles listings, applications and background checks, tracks rent payments and maintenance requests. The only feature it lacks is advanced reporting so we take the info from Cozy and input it into a spreadsheet for budgets and ledger.

1 Vote

You wouldn't believe the returns that we are getting in Norwood. We look for rent growth because this will be the main factor in determining ARV. What size property are you looking for?

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I think everyone has their own criteria to fit the specific type of investment they are looking for but for us it's population growth and inventory of buildings larger than 8 units.

1- East Walnut Hills

2- Norwood

3- Evanston

2 Votes

All Forum Posts by: John Wright

John Wright has started 3 posts and replied 49 times.

Post: Dropping out of college

Post: 10 house hacks in 10 years

Post: Second Fourplex - 14 days after our first property.

Post: House Hacking Research #2- Ask/Answer any House Hacking Question!

Post: House Hacking Research #2- Ask/Answer any House Hacking Question!

Post: House Hacking Research #2- Ask/Answer any House Hacking Question!

Post: What software to use for managing properties and books

Post: Cincinnati Native and ready to invest here

Post: Criteria for Cincinnati Ohio