All Forum Posts by: Sam Moomey

I’m currently looking at a house in my area which is a very big vacation area in the summer. I’ve got a house currently with around 150,000 in equity. The idea would be to sell my house ans use my equity for this new property. What I’d like to do is use it as a short term rental may-September and then live in it the rest of the winter months. The house is listed for 875,000 and could make 5000 a week being rented all summer long. The tricky part is I’d be buying it as a personal residence with the 3.5% down ideally to get a better return on investment along with freeing up my equity in my current house to furnish that house and invest in other real estate. Taxes are much better with a personal residence ans I can get a 30 year mortgage that way as well. The township is fine with me renting the house out on air bnb as long as I keep it homesteaded as my personal residence. So the goal would be to cash flow while having a very cool big house to live in 6-7 months out of the year basically for free because the summer rentals would cover the mortgage and then some. My biggest hitch is getting a mortgage. I haven’t talked to any lenders yet but I think I’m going to run into issues with my income not being high enough for it to work as a personal residence. Any advice on how to go about doing this to be approved for a loan. I’m not apprised to putting 20% down if I need to but I’d rather not do that if possible. Also I would need the air rental income to make a percentage of the payments. I couldn’t just do it on my income alone. Any advice is greatly appreciated. Thanks in advance!!!

Hello, I have a house currently worth $300,000 that I have around 50% equity in and I’ve got a 2.87 interest rate on a 15 year mortgage. Now recently finding out about bigger pockets I am very interested in owning multi family buildings. That being said I’ve come up with an idea that I want someone to pick apart the holes in the plan and possibly answer some of my concerns. 

So my “plan/idea” would be to sell my house and build a fourplex apartment building with a residential loan at 3.5% down payment (lower the down payment the better return on investment I’d have). So I think this can be done for $500000 but that is just a guess based on my guess of the cost to build in my area (west Michigan).

So Live there for a year while renting out the other 3 units (live for free because the other units rent will cover the mortgage)… then after a year as I understand, I’ll be able to rent out the 4th unit as well and then build another 4plex and do the same thing so I can have multiple 4plex’s with very little money invested ($17,500 down payment plus closing costs). Then I’ll be able to keep my lower interest rate since I live in them for a year. 

If there is someone whose done something similar I’d love to hear how that worked for you. 

Please poke holes in this plan because I’m a beginner ans don’t have the knowledge.

A concern of mine would be interest rates rising multiple times through 2022 and by the time that I switch from a construction loan to a mortgage I could possibly be stuck with a much higher interest rate and how much would that affect me financially.

I’m new to this website and am 22 years old with very little experience in real estate investing. I have around $120,000-$150,000 in equity in my $280,000ish house. Being in that position I’m looking to either sell my house and “house hack” a multi family apartment building. Another scenario would be if I keep my house I’d still like to refinance a lot of that equity out of it to invest into something, preferably multi-family. So my main question is this: I know you can get a residential loan at a lower interest rate on a four-plex with only a 3.5% down payment as long as you intend to live there for one year. Can you use this same strategy on an apartment building that is greater than 4 units (which is considered commercial and not residential)? 
again I’m very very new to this and any insight is very appreciated! 

Located in west Michigan if that matters.