All Forum Posts by: Peter K.

Originally posted by @Kerry Baird:

You haven't looked around enough.  There are some banks that top out at 4 mortgages, and others that top out at ten houses.  The lender I use is one of those.  If you plan better than we did, each member of a couple can get their ten mortgages, for a total of 20.  The interest rate is a little higher and the down payment is a bit higher on mortgages 7, 8, 9 and 10.  Additionally, there is a requirement to keep six months reserves for all houses.  So, any way you slice it, the process is not "simple." Nor is it onerous.  Just be methodical with your credit and savings usage.  

After ten mortgages, our lender will then move us to their portfolio product.  Ridge Lending, Caeli Ridge (Chay-lee) is the lender we use.  

Call the community banks in your local area, as they are most likely to help you get past 4.  Ask if they have an appetite for investor grade single family homes.

I'm still on my first home (investment), will be a non-owner occupied SFR home. Not even close to getting past 4 yet, short steps first. But thanks for the input.

Specifically for an investment property, as a buy-and-hold investor, would it be wise to take out a 5/5 ARM as opposed to a 30 year fixed loan (since it is very difficult to find a 30 year fixed conventional loan even with a 20% down)?

What are your thoughts?

Originally posted by @Eric Campbell:

Don't overlook SECU. I know they don't offer the 30 yr fixed, but their 5/5 arm isn't a bad product. Closing costs are kept down, and they don't ask a lot of questions. I've never had a delayed closing with them either, and I've done 4 mortgages there on primary and investment properties.

Just make sure you can carry the debt without the rental income, because they won't count any income from the new property, regardless of how much experience you have or even if the subject property is fully leased. That's what I'm running into. I have a 4-plex under contract, and they wouldn't count any of the income, even though all units are occupied and have written leases. 

 Might not be a bad option but I called and you have to be a state employee or a state employee family member- I have neither. I am federal though. 

I'm shopping around for the lowest APR for a 30-fixed year 15%-20% down, investment property loan.

I've shopped around quiet a few local credit unions and local banks (around Fayetteville and Raleigh) but wanted to see if anybody else knows a good bank for such lenders? I prefer not to use a broker to look for deals as it will cost a hefty $1K price tag. 

Let me know if anybody has any good recommendations! Thanks. 

Great advice all, thank you all very much.

I'm looking at a SFR that has been on the market exactly 162 days (5.5 months) as of today. It has a tenant in it and I will be purchasing as a rental property (investment). My question is- the asking price is at 74K but my realtor told me a -10% offer which is (66.6K) is low balling it and most likely won't be accepted in a seller's market. I was thinking of putting in an offer for 68K (which is about -8% off asking price). How likely will my offer be accepted and should I bid lower or higher? It's hard to believe that a cash-flow property such as this is not selling in this market- any thoughts?

Originally posted by @Terrell Garren:

I've been with USAA for 35 years but found Pentagon Federal Credit Union and home equity loans was the best option for me.

 Did you use USAA for an investment home loan? I don't think Pent federal credit union offers investment property loans (30 yr fixed, at least). I do not have a property to get a home equity loan at this time.

Originally posted by @Melvin List:

@Peter K. I would find a mortgage broker in your area and let them shop it out.  Many of the big lenders have priced themselves out of the Non Owner Occupied deals because of profit.

 I don't think a mortgage broker is an option. I would have to shelve 1-2% commission if I were to use one. I feel as if I were to shop around myself, I would not be wasting money that I don't have.

I found that USAA gives investment property loans however I read and heard horrible reviews regarding their home loan department. I am very reluctant to take oit a loan from them hearing how difficult they made their closing process. Anybody have any experience with thi recently?

I'm in the process of possibly purchasing my 1st investment rental property (non-owner occupied). Someone brought to my attention to create an LLC to protect my asset in the case of a law suit. There is currently a tenant that lives there and I would be collecting rent. What are your recommendations/thoughts? Shouod I create an LLC immediately after I purchase a property or down the line when I have more equitity in the property?