All Forum Posts by: Presley Grooms

@Austin Lynk the 3% was actually a Conventional 97 Loan! Honestly, I was shocked that they offered it but we weren't complaining. Two big advantages for this over FHA is that fees are much lower and the PMI is cancellable once we hit 20% equity.

We used Better Mortgage and have nothing bad to say about them. Easy, great service, and excellent rates.

Love the vision and clarity in your plan! I bought my first house last Sept with my fiancé. She, too, is eager to pursue REI as much as I am. We bought the house for dirt cheap (3% down) and have been fixing it up while living in it. I'm just a beginner like you, but here's some of my advice in no particular order.

Tip #1: don’t underestimate the work needed. I’m a very handy woodworker and capable to do a lot of things in a house, but all that while working full-time takes its toll. (Worth it, but don’t underestimate)

Tip #2: get into a house hack ASAP. We aren’t comfortable living with a full-time roommate, so we’re currently trying to rent out our upstairs on AirBnB, starting Q1. If you’re comfortable with it, I honestly don’t think you’ll find a better cash return than this.

Tip #3: do your research, then go for it. I was stuck in analysis paralysis for quite a while researching and not until recently did I really decide to take a leap forward. It seems like you’re on your way with the plan you have laid out. 

Hope to keep in touch on your journey!

Thanks, John, this is good to know! I will certainly look into this, though we are outside of city zoning (up by Paris Mtn). I'll ask around and see what comes out. I've also read about some recent STR rules in Mauldin.

Hi Miguel!

I’m currently living in the Greenville area as well. I’m in the process of saving some money to purchase my first rental in the next 1-2 years. I took the plunge and bought my first house last year and I’m now in the process of outfitting the upstairs to be rented on AirBnB.
As @Chris Tarpey mentioned, networking is a top priority and something I’ll be building up locally as well. I’ll see you around!

Presley

@Scott Wolf Thanks for the advice, as that will probably be my next step. Some of the HMLs that I have spoken to would lend on the purchase AND the refinance 6-12 mo later but their terms on the 30 year don't seem to be as appealing as traditional financing. Thanks again!

@Michele Wax Thanks for your reply. The issue is that banks will not lend on the types of properties that I am looking to invest in. These are dilapidated and uninhabitable at first. After the rehab though, they will be eligible for traditional financing.

Hello all,

I am looking to do my first BRRRR investment and the plan is to use a HML to fun most of the purchase + rehab. Of all the HMLs that I've spoken to, they all require a business entity to be formed. I understand this is due to Dodd-Frank restrictions, etc. After the rehab and seasoning period is over, what is the best way to refi under a conventional mortgage? I know most conventional lenders won't lend to an entity so what should be done to make this all work?

I haven’t found this exact topic in the forums but if anyone knows of one, please point me there.

Thanks in advance!