All Forum Posts by: Nathan Hui

@Donald Bondi I did a little reading on the Homestyle and it is 15% down and it is only eligible for single family.

@Will Gaston I love it. I am assuming it is only now that you are finally appreciating. Are you looking to sell now or are they actually making you money?

@Joe Splitrock That is very practical advice. I am glad I actually found an investor who was buying properties in 06. I guess with loans being so easy to acquire the rental market was probably taking a hit overall. It makes sense demand increased once it became more challenging to buy homes.

@Donald Bondi I didn’t even know this existed. I need to talk to my lender about this. When you say “better credentials” do you mean better credit? Thanks for the alternative solution.

203k would likely have too many moving parts. There are tenants that have lease contracts terminating at different times. I think moving all of them could be complicated. I will have to look at their lease contracts which I have not gotten my hands on yet. 

I do think 203k would be ideal because I could build the renovations into the loan, which is basically what a hard money refi would do except I could keep the low money and low interest. 

@Matt Lenzi

$90,000/year = $7500/month

The 1% rule would be to purchase the home for $750000. Or $9500/month rental income.

A Morgage for $950000 with a 4% interest rate with 20% down is $3628.36

The 50% rule is = (Income x 0.5) - Principle & Interest

$7500 x 0.5 - $3628.36 = $121.64 Cash Flow

In my area, the 1% rule is a minimum and the 50% rule is conservative. But the quad I am looking at is 200k bringing in $2100. You will need to think about whether $3750 is realistic for expenses. Maybe that’s way too high. Also, you should probably consult with someone in your area.

This is definitely contrary to what I was thinking. Others also are echoing the same thing...

https://www.biggerpockets.com/...
 

Arguably, those were solid times to do those things...

I am surprised your rental income increased. I can't make sense of that. But it is somewhat reassuring that rental rates can remain isolated from economic downturns. 

Please do. Your profile says that you purchased a home in 07 and it is cash flowing more than $4000. Is that annual CF? I guess you qualify for starting in 07. How did it go? Can you share your own experience?