All Forum Posts by: Nicholas L.

@Jacob Hollen you'll also pay financing costs twice, first for the HML loan then for the refi. That will consume a fair amount of cash.

Hi @Chelsea Jean-Mary is there a specific area within the DMV that you want to live for commuting reasons?  Or are you open to anywhere based on the criteria you provided?  I agree with the others that there are a few areas with options <$300K for a nice primary residence, it just may be tough to turn it into a rental that hits the 1% rule down the road.  Which doesn't mean it wouldn't be a good investment or the right decision for you.

Hi @Andrew Liu get a couple of different quotes from a couple of different lenders for multiple products, so that you can compare. Interest rates will be higher on a HELOC, but you'd only pay for what you borrowed. Do you have a target market and/or investing strategy in mind?

@Stanley Perez are you working with your own agent?  Maybe they can find something out.

Hi @Mary Lloyd makes sense, you could simply give them gift funds for the down payment.  That keeps you off the mortgage.

Hi @Brett Mason like most strategies it will work both with and without partners. If you want to buy the houses yourself - buy a house with an FHA loan and BRRRR it to take the funds out. Repeat with a second property. If you have a partner - do it together.

See the following post with advice that also applies to ANY strategy: "unless you have unlimited funds, your strategy HAS to allow you to get your money back or else you will run out and have to wait a LONG time before you can buy another property."

https://www.biggerpockets.com/forums/223/topics/801684-fired-my-boss-in-4-years-with-40k-monthly-rent

Hi @Davinder Singh it really depends on your family's situation and lifestyle, your goals, and the difference in the deals available to you (duplex vs. SFH). If you're renting a room presumably that's more proximity to your "tenants" than if you're living in a duplex. And would this be your primary residence indefinitely, or would you be looking to get it off the ground and then move? A lot of variables in play here.

Hi @Mary Lloyd what are your (and your parents') overall goals here?  If you all go on the mortgage, you all stay on the mortgage until it's refinanced or paid off.  That's debt on all of your personal balance sheets.  If you already have a primary, are you just trying to help them, or are they trying to help you?  Will this house be a rental immediately, or at some point in the future?

Hi @Michael Lopez exactly - or, not necessarily a HELOC for the funds, but just don't burn up all your savings on your first property, no matter what you do =)

And, it takes a long time for the cash flow from a property to replenish the initial investment. I've bought all my rentals so far with conventional financing, and am getting ready to BRRRR because it takes so darn long to save up again.

Hi @Jarrod Haley a real estate agent can help provide you with comps to make an educated guess about the ARV. A lender can help you with loan work-ups for both the initial purchase and the refinance.