All Forum Posts by: Rochelle G.

@Thomas D. I’m all for being innovative and coming up with new strategies to meet goals, but this is ridiculous. I understand you weren’t trying to be confrontational, but posting proof of conspiracy to commit mortgage fraud wasn‘t the best decision for an investor. Nor was it wise to consult a forum of individuals who dedicate their time toward obtaining properties they deem valuable and asking if it was alright to lie about how much your condos are worth. That’s the equivalent of going up to a banker and asking if it’s okay to deposit $100 if half of it is counterfeit.

@Alexander Nason I’m sure everyone replying to your post means well, but this is something to consult your actual lender about. I currently have an FHA loan and would recommend it to anyone looking to get into a property quickly. However, you need to be willing to take a year to settle in and use that time to save. Once you pull out an FHA loan, you cannot take out another without refinancing out of the first. The only 2 conditions where that isn’t the case is 1) Your job requires you to relocate greater than reasonable distance or 2) your family outgrows the home. Again, it’s a great program, but you do need to be able to come up with your down payment for your next deal since that 3.5% is the lowest you’ll ever be able to bring to closing thereafter. However I‘m assuming you plan to finance traditionally on your own.

@Omar Khan I understand what you’re saying. I went the FHA route for my first purchase solely because I didn’t have a whole lot of money for a down payment nor a particularly awesome debt to income ratio. My credit was the only thing in my favor at that point. I just wanted to quit paying rent as quickly as possible and get into my own place.

I own a 2 bd 2 bath condo that will rent out for $1300/month. I currently live in the home, but have a management company on standby with everything already priced out waiting to pull the trigger to rent out once I move. I have an FHA mortgage on the condo at 3.62%. My lender, as well as my real estate agent, has advised me to go with a conventional mortgage on my next purchase, however the huge down payment is hindering that. I was told it would be unwise to refinance my current mortgage into a conventional since I have a good interest rate on it, however I feel like refinancing (even into a higher interest rate) would be more beneficial to me in the long run. I could lower my payment and increase my cash flow as well as open myself up to purchase on a FHA mortgage for my next property. The 3.5% down payment would be very manageable. I intend to buy and hold my properties to rent out as I move out into the next property. I do not mind living in it for a year to fulfill the FHA requirement. A higher interest rate doesn’t scare me too much seeing as how my renters will be paying my mortgage for me as long as it’s fixed. Any thoughts from more experienced investors? Side note: I looked into HELOCS for the down payment on a conventional and it’s just not a good option for me right now

Have you looked into a management company? For a small percentage of the total rent, most companies are able to find you a tenant within the first month of contract.

Girl. Buy your house and ride it out for a year. Who says eventually he couldn’t move in with you since he’s already working on the year long “primary residence” stipulation on his mortgage? As someone who plans to relocate for her long distance relationship, I’m sticking it out for a year or two in my state building up my portfolio a tad and laying the groundwork for a small passive income. If it’s the right relationship, that year compared to a life long foundation for financial freedom means nothing. I have a 3.62% FHA mortgage that I’m so thankful I was able to obtain. Take care of your finances and then plan your living situation within the relationship. You won’t ever regret it.

Originally posted by @JJ Bliss:

Hi Rochelle,

Is this 90% loan for an investment property or your primary?  Also does the property need any work or if you were to get construction money as well could you get a higher value? 

This loan will be taken out on my primary residence, used for the down payment of my next primary residence. I already have my ducks in a row to rent this place out through my management company once I purchase my next deal. 

Hi all, I’m in the process of rounding up my funds to purchase my second deal, and was curious if anyone in Michigan knows of a good 90% LTV lender to possibly secure a HELOC or Home Equity Loan from. I’m having a difficult time finding banks or credit unions who will do higher than an 80% LTV. Thank you for any suggestions or advice!

I would obtain a HELOC on my home in Texas and use that for a down payment for a 30 year fixed or FHA loan on a home in Spokane. Short answer.

Thank you all so much, you’ve been a big help! I was very on the fence about it in the first place. I’m going to take your advice and hold off on the LLC until I own more doors.