All Forum Posts by: Nicholas L.

@Nicholas Potocki check out the Mid Atlantic Summit 2020 in Philadelphia.  Lots of landlords to network with, lots of great speakers on a variety of topics, reasonably priced tickets.  There are a couple of BP threads on previous Mid Atlantic conferences if you want to check them out.  Note: I am NOT affiliated in any way, I just attended last year and had a great time.

@Brennan Davis you can also use gift money from family for a down payment.  Banks typically want a gift letter in your file from the giver, affirming that the funds are indeed a gift and are not a loan with the expectation of repayment.

If you house hack, you're combining buying an "investment property" with the possibility of low-down-payment financing available only to owner occupants, perhaps through FHA.

Hi @Isamar Ochoa sounds good. Assuming the loan limit is high enough, low DP (even with PMI) seems to me like the better option. Have you considered multi-family? I don't know what the availability of MF is like in the Bay Area but I bet the loan limits are higher.

Hi @Isamar Ochoa so, I think what you're saying is that you have an existing property you're going to keep, and you could use (1) the equity from that property (as a HELOC?) for your down payment, and (2) the rental income from that property (assuming you have 1-2+ years of proven rental income?) as qualifying income. Is that right? Assuming you're going to occupy the new property as you stated, you might qualify for low DP programs, which I believe have limits to the loan size (which one of the lenders here can probably tell us about). But I still think that on a property this expensive, you're either going to tie up lots of cash OR pay PMI (because if you have access to a HELOC, you could use that "cash" for purposes other than taking out a loan for a down payment, like buying a different investment property for cash.)

Hi @Isamar Ochoa you said you're looking for a low down payment program, but also that you don't want to pay PMI. In many programs with lower down payments, you will pay PMI. Or did you mean you have another source of funds for the down payment, like a gift from family? I applaud your decision to dive in, but (forgive me for stating the obvious) you'll tie up a lot of cash if you put 20% down on a property >$1M. Let me know if I am not understanding your plan correctly =-)

Hi @M. Anthony Contrascere under the scenario above, you have $20,800 in cash as @Gil Segev points out, and you've paid off your original loan and are in a new loan.  You've still spent the $105K that you used to buy the property, you just have $21K in cash back from the re-fi (actually less, since there will be closing costs on the re-fi and another miscellaneous expenses). That's why BRRRR works better with an all-cash purchase as @Jaron Walling pointed out.

Hi @Paul Chae to give us a sense of what's at stake, can you tell us (1) what the purchase price is, and (2) how you're paying for it?  It seems like you're paying all cash - is that correct?  Do you have your own team in place - agent, attorney, property manager?

@Rudy Necoechea here are a few I like:

• Rental Income Podcast with Dan Lane
• Afford Anything with Paula Pant (she mixes FI and RE, I tend to listen to the RE ones)
• Kathy Fettke Real Wealth Show
• Passive Real Estate Investing with Marco Santarelli

Hi @Blake Dailey congratulations. Can you share any additional details on the refinance - did it appraise as expected? What LTV did you get?

@Sylvia B. did you see the latest update?  The owner of the house agreed to sell the house to a non-profit, which to me doesn't seem like the worst possible outcome.  I saw in one article that the company has done "160 flips in 9 years" - which might seem like a lot, until you realize Oakland has 170,000+ housing units.