All Forum Posts by: Nick Velez

@Jonathan Snider

Fannie and Freddie do have LLPA's and the lower the down payment, the higher the cost. There are alternative programs out there with reduced cost, but you are typically looking at 20% down. 

We have an investor running a special next month on 10% down second homes where the cost is 3-4 points cheaper than it would be, on a normal Fannie/Freddie loan. 

@Jonathan Blanco

You have received a few good replies so far. For the most part, most lenders are going to be relatively close in cost assuming we are talking about a straight forward loan product, we all borrower from the same pool of money to make these loans. 

If you are going to continue buying, you really want a lifelong mortgage advisor in your corner who will help structure loans in your best interest. We get paid the same whether you take a higher rate or buy down, but there are absolutely times when it makes more sense to do it one way or another. This is critical because depending on your future goals and what we think the market is going to do, we can structure everything to keep more money in your pocket for the next deal. 

If you are in the Tampa area and plan on purchasing there, I highly suggest you connect with @Josh Green. Financing is important but your realtor will absolutely be the determining factor whether you purchase correctly or not. 

Best of luck!

@Kris L.

I would connect with @Josh Green, I would not be surprised if he dealt with a transaction in your neighborhood and he is a local expert on all fronts.

@Tyler Magee

Hey Tyler, with you being in Tampa and have 150k to play with, the possibilities are endless! There are so many strategies you can deploy depending on your goals going forward. 

The Tampa Bay area can really be the best of both worlds in terms of appreciation and cash flow, as long as you execute correctly. I will add that you definitely do not need to be near your investments, but it makes things a lot easier when you first start off. 

I HIGHLY suggest you connect with a local expert such as @Josh Green. He is regarded as the STR expert in the area but he has used every strategy in the book, and should be able to point you in the right direction based on your goals!

If you want the best rate, I would find the cheapest online lender you can find where you are number 37 out of 70 for the month. You may need to resubmit things several times, have a hard time getting ahold of them, and there is a very high chance they blow your deal up last minute, but at least you have the opportunity to get the best rate! 

Real estate is a relationship game. Find a decently priced loan officer or two and stick with them. When I shop for new vendors, I pick who I like the most and has the best reputation, not who bids the cheapest. When I go to get more work done, I use the person that was fairly priced and met my expectations that first time, I do not shop around again for the lowest deal. When I need something done fast, I can count on them to squeeze me in.

Keep in mind that if you need the cheapest option for your deal to pencil, you probably should not be buying that deal. 

@Richa Wardhan

Hey Richa, I am located in Gainesville and have 5 properties here. Outside of my primary, they are all cash flow positive, some to the tune of 3-4k a month on a 12 month outlook. My guess is you are renting long term, turn key properties. There are so many other strategies you can implement here that would provide to be much more beneficial, if you would like to increase cash flow. Feel free to PM me and we can discuss. 

@Allie William Wilson

Hey Allie! I actually helped a fellow realtor finance a STR in Johnson city and she seems to be doing very well. I own a few in Central Florida as well. Feel free to PM me if you want me to get you connected. :)

Did you represent yourself? Purchasing a STR in a somewhat sketch area is a terrible idea and as others have mentioned, is going to open you up to potential issues.

This is why is is extremely important that you use local resources who own STR's in the area or manage them at a bare minimum. I would never let a client purchase in certain areas of my local market....

@Annie Anson

Welcome and congrats on taking the first step! Not many people dig too deep on the actual requirements so kudos to you. You definitely want to talk to a different investor friendly CPA that helps their clients with cost seg's, and can articulate exactly what you will need to do to meet the requirements. 

I also highly suggest you connect with @Josh Green as well whom not only owns STR's locally, but has a management business. Tax savings are amazing and I have utilized cost segs myself, but you also have an opportunity to make an amazing return on your money in the Tampa Bay market. There is a formula that you must follow if you want to perform, having a realtor who knows the market inside and out and practices what they preach is an absolute necessity.

@Kegan Scholl

I am partial to Florida given I live here but I have house hacked for the past 6 years and it fundamentally changed my life, you are on a great path for success. Tampa has amazing growth potential and have personally witnessed @Josh Green work miracles for his clients. If Tampa is on your radar, I HIGHLY suggest you connect with him.