All Forum Posts by: Reid Chauvin

No connections to share, but we need more quality appraisers out there! Good luck! 

I do not believe that you can apply for a conventional loan as an LLC, however you can apply for a conventional loan as an individual and have it subsequently transferred to an LLC (if sold to Fannie Mae, not Freddie Mac). This will affect your DTI, but if you plan to buy another house in the future then any rent you can garner on the old house can cover the Debt and lower your DTI.

If this is your first purchase then I would buy as an individual, there are a bunch of great options out there for first-time homebuyers. FHA, as mentioned above is one, but you can actually put 3% down through Fannie Mae's 'Homeready' program, if your income is below the specified limit in your county. 5% down if not. To me these options are more favorable to an FHA loan given the excess PMI you will pay with FHA.

I had not heard of situating a HELOC in this manner. Great info!

Having rented to several groups of college kids, (in addition to having once been a college kid myself), I don't think you should assume that college kids are going to treat your property any worse than any other renter. If they can afford to pay the rent, then I would try and call previous landlords (if applicable) to understand how they were as tenants. Other than that, I would just make sure you have a solid deposit and a strong lease agreement, (maybe you impart upon them that there will be random drop by inspections if you're really concerned). 

 There are generally community Realtor societies that you can join, just run a quick google search to see if there are any in your area. Is there any sort of volunteerism that you are passionate about? Joining a habitat for humanity or something along those lines can allow you to make connections while doing good for the community. 

@Matthew Donaldson there are too many great realtors out there for you to be wasting your time with one who does not suit your needs. I'm sure there are some investment-minded realtors on this site who service the Cleveland area. I think that for your personal situation, it will be important for you to A) work with a Lender upfront who can provide you with an estimate on your upfront costs and monthly payment based upon home price, and B) work with a realtor who knows the market and can gather rental comps for you on specific properties, so that you can determine if you can actually garner enough rent on the property to cash flow. 

I'd say getting out and meeting other professionals in your market. Try and get some time with other fellow agents who will be willing to share their own insights and experiences with you. 

If you have any debts you need to pay off, improvements you want to make to the home that could increase the value, or other prospective homes that you could use some cash upfront to purchase, then a cash-out refi could make sense for you. Especially if you have not already refinanced and taken advantage of lower rates. 

The refinancing route sounds like it could work for you - with you being added as a co-applicant for the loan. Depending upon how much equity your family member has in the home, you may not even need to come up with any cash out of pocket. Would be a good idea to consult with a title attorney to determine how you and your relative should hold title on this home, given these special circumstances. 

Getting in now and financing a property as a primary, with intent to rent it out after you've lived there a year or two (perhaps even with paying roommates) as rents continues to rise, may not be a bad way to get into a tough market.