All Forum Posts by: Randy Coker

I told them I was downsizing from my current house and since lived there for 23 years the lender said I would be considered a first time home buyer.  I said well ok. 

Quicken/ Rocket Mortgage it was 96.5% LTV. I could have gone down to 3% for the down payment.

Located in Katy Texas.  West of Houston. Without doing any updates it looks  like i gained 10-12K in equity capture when purchased.  I think with some small cosmetics changes that could go up. I could not justify 30% on repairs with a new roof and new mechanical as well as hot water heater. I agree Jacob its not ideal but it seems like a safe start.

After 8 years of having Analysis Paralysis, I just pulled the trigger and jumped in.  So fellow investors how do you think I did?  It is not a home run by any means but a very safe bunt.  AC and Heater are new with a 10 year warranty. Flooring maybe can stay but not sure.  Fresh Paint was done 6 months ago. 3/2/2 1600 sq feet.  I used a first time buyers loan.  I lived in my current house for 23 years.

Purchase Price $150,000

Down Payment 5% =$7,500

Loan Amount $142,500 @ 3.5%

Mortgage $639

Taxes $280

Insurance $75

HOA $30

Total Monthly $1024 expenses

Rent $1450

I am taking 5% on vacancy, cap ex and repairs $-217.50

Estimate positive Monthly Cash Flow $208.05

Only that I did not figure in is PMI....

Love to hear your thoughts.

Now this is a fun thread!!!

When I called the lender it was discussed that I wanted to down size my primary.  He told me that since I have lived in the same house for 23 years it would be like buying a first time purchase with 3-6% down depending on credit.  I did not say it was going to be a rental.  

So here is the sitaution, I want to make sure I do it all in the right order to get maximum growth.  I am looking to Buy and Hold at the moment.

My primary house has great Equity. Appraised at 310K and owe I 85K

I have 12K in cash in the bank

I can get a Pre approval letter for 6% down and 30 year mortgage at 4.5% I have lived there for 23 years and lender said i would qualify as a new home owner.

My credit score is 690 so not stellar.

NOW....

Do I buy a cash flowing rental with the 6% Down first?

Or get a HELOC first and then use that money for down payments on a multi or a few SFH?

and third option is rent my primary that will cash flow around $1200 a month and then house hack a new one?

I am in the Houston Area so deals are out there but sometimes a bit pricey.

Thanks for all the help guys.

No way 33K for rehab.  Something is off here.

Thank you Andrew. That is a great explanation.

 The County auction that I was at the money is due at End of Business day .  They can fund that fast with as prequal?