All Forum Posts by: O'Licia Parker-Smith

Quote from @Sheri Fluellen:

@O'Licia Parker-Smith, I'm part of a vibrant and growth oriented online multifamily community that has mindset training, mindset coaching, multifamily mentorship and a few other things.  It's really priced as a tremendous value!  Let me know if you'd like more info.

 Hi Sheri,

Could you DM me more info please? Many thanks!

Quote from @Vessi Kapoulian:

O'Licia Parker-Smith: O'Licia, you have received great suggestions thus far. I will add Rod Khleif to the list of multifamily programs to consider. He has a bootcamp coming up that would allow you to get a better feel for the culture of the group and the content. I can DM you the link, if interested.

 Hi Vessi,

I would appreciate that to learn more. Thanks so much!

Quote from @Zachary Ware:

I have heard great things about the Multifamily Mindset. They have an extensive mastermind group that are actively putting deals together! I would highly encourage local meetups as well. I actually learned about the group at a meetup in Austin, TX. 

Hi Zachary, thanks for the recommendation! I'll check them out as well.

Quote from @E. C. "Stony" Stonebraker:

@O'Licia Parker-Smith, try DavidMonroeCCIM.com and JakeandGino.com for two that help investors get started and provide educational materials.

 Hi E.C., thanks for sharing some recommendations. I'll check them out!

Hi BP community,

I'm looking to connect with more folks who primarily investing in multifamily properties. Do you know of any real estate mastermind groups or networking communities that primarily discuss multifamily investing? I'm in Texas, but open to groups that meet virtually across the US. Many thanks in advance!

Quote from @Tyrell Proby:

Considering the current economic stress in the US, a mid to high 6% interest rate for a quadplex is not necessarily high or low, but it may be considered average. Interest rates are currently fluctuating due to the ongoing pandemic and economic uncertainty, and the rates offered may also depend on different factors such as loan size, and loan term. It's advisable to shop around and compare rates from different lenders to ensure that you're getting the best deal possible.

 Hi Tyrell,

Good to know. Thank you for sharing your perspective --especially being in the area!

Quote from @Chris Seveney:

@O'Licia Parker-Smith

That appears to be going rate - you can try and buy down the rate if you are going to hold for a long period of time

Hi Chris, thanks for sharing your perspective! Glad to know we're thinking the same way--I'm considering buying down the rate since this is a long-term hold. 

Quote from @Dave Skow:

@O'Licia Parker-Smith- thanks - owner occupied 4plex rate of 6.625% sounds a bit high ...what are your credit scores ? what is the loan fee ( aka " points ") being charged for this rate ? what is the est loan amt and purchase price ? what is closing date ? Fyi - make sure to ask the lender if the property will pass the FHA Self sufficiency requirement for MFP..thanks

Hi Dave, thanks for your help and heads up on the self-sufficiency test! Without giving away much personal info: My interest rate was 3% in 2021 and my income, DTI and credit standing have only improved since. I'm not expecting a 3 or 4% rate now, but I'm hoping to be on the low end of the range again this time. I'll have to clarify with my lender on the loan fee but that's a good point you brought up!

Quote from @Jay Hurst:

Quote from @Jay Hurst:

Quote from @O'Licia Parker-Smith:

Hi everyone,

New to the forums and going through the lender approval process for a multifamily (aiming for a quadplex). This will be my second home purchase, but it'll be owner-occupied. I'm getting FHA interest rates in the mid to high 6% as of now. I know interest rates are dropping slightly, and I heard that multi-family properties tend to have higher interest rates compared to single families.

Curious to know, is 6.625% a high, average or low interest rate for a quadplex in this current market? Thanks in advance

@O'Licia Parker-Smith FHA actually does NOT have an adjuster for 2-4 unit vs single family. The lender you have spoken to might have an internal adjustment but plenty of brokers would NOT have that adjustment. if you have a credit score over say 660 you can do a lot better then that in rate. Or, at the 6.625 have very little to no closing costs.

That all being said, as your loan officer mentioned anything about the FHA self sufficiency test for a 3-4 unit? If not, that might be trouble as FHA requires ALL 3-4 unit properties to pay for themselves. That for means for example if the rent in all four of your units was 1k, the prin/interest/taxes/home owners insurance/FHA mortgage insurance would all have to under 4k. IT is VERY hard to find properties that work especially in high cost areas like Austin (if you are buying there) if you are looking to small down payment like the 3.5% for FHA.
 

 And I just realized I described the self sufficiency test incompletely. It is 75% of the total rental income. So, in my example of total rent at 4k, the entre payment would have to be 3k or less.  

Hi Jay, thanks for your thoughtful and helpful response! Also, thank you for the heads up about an internal adjustment. I'll ask to clarify if that's the case. My FICO score is in the "very good" range and my debt is super low (my current place will be paying for itself once I rent out my side), so I was hoping to be on the lower end of of current rates. I didn't previously know about the self-sufficiency test but looked it up. Thanks for mentioning it! I'm using it as I analyze deals now. Many thanks!

Quote from @Erik Estrada:

Quote from @O'Licia Parker-Smith:

Hi everyone,

New to the forums and going through the lender approval process for a multifamily (aiming for a quadplex). This will be my second home purchase, but it'll be owner-occupied. I'm getting FHA interest rates in the mid to high 6% as of now. I know interest rates are dropping slightly, and I heard that multi-family properties tend to have higher interest rates compared to single families.

Curious to know, is 6.625% a high, average or low interest rate for a quadplex in this current market? Thanks in advance!

How is your lender pricing it? Borrower paid compensation or lender paid compensation? You can get FHA as low as 5%.

Hi Erik, that's a great question. I believe it's borrower paid compensation, but I'd have to confirm. Thanks for letting me know lower rates you're seeing!