All Forum Posts by: Sarp Ka

If i agree with my friend and we split closing costs 50-50, could I own 50% of the house and can my friend still get primary residence conventional loan with 10-15% downpayment?

Please note that I cannot get any primary residence loan since I'm already using one and it hasn't been 1 year since I've closed on my property.

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Hi there,

If i agree with my friend and we split closing costs 50-50, could I own 50% of the house and can my friend still get primary residence conventional loan with 10-15% downpayment?

Please note that I cannot get any primary residence loan since I'm already using one and it hasn't been 1 year since I've closed on my property. However my friend can get a primary residence loan and can live in that property.

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Originally posted by @Karissa Sampson:

In my experience, this is called an 80-10-10 loan. Basically you bring 10% cash down and the lender will lend you money for the rest with a first mortgage for 80% and a second mortgage for 10%. Rates likely to be higher, but if you have no other options then you just pay the piper. Look at credit unions.

Thanks I'll look for credit unions, so single credit union could provide 80-10-10 loan? Or do I need to ask 2 separate credit unions?

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Hello I've been reading that you can get a second loan providing that 10%, so that on the title it shows as I paid 20% downpayment hence it's not bound to PMI.

I'm wondering which lenders do that? Do I have to get 2 separate lenders and ask them to do the 10%? Do all lenders agree to be on the side that's providing 80% loan; and the same goes for lenders who want to be on the 10% side?

Thanks

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Originally posted by @Malgorzata Sadowska:

not enough info to properly advise. Depends if you are renting ST or LT; depends what's your downpayment; in general, it is always challenging to cash flow upon purchase in South Florida (simply too much demand here most of the time..,). Some patience, sweat equity, creativity & money (= renovations / upgrades) will bring you into great cashflow.

It's for the long term tenants. I'm flexible with properties that can go as high as 500k.

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Miami, Florida

Hi Tim,

thanks for the help. I've checked few different counties they all seem to have similar taxes. I've ran some numbers and it's not cashflow positive. I'm wondering if the price point I'm looking for is wrong. Which areas at what price point can provide cash flow positive?

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Miami, Florida

I've been checking Miami, Fort Lauderdale area. I've realized the tax millage for properties are 19 to 22. Which means for properties that are worth $500k you'd be paying $10k property tax!

I find this way too high. I tried to look for rentals around the area and it seems like they are not that high to make up for the taxes.

My question is which areas (and zip codes) i should look for cashflow positive? Also what price point do properties make cashflow positive? It seems like the lower the property value is, the more likely it would make cashflow positive?

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Miami, Florida

Originally posted by @Paul Blair:

Many of our clients are investing in DFW. In the average neighborhood cash flow percentages are low for the first year or two, then you'll see that grow. However if you push into south Dallas you may find higher cash flow, which may or may not come with more problematic tenants.

The average investor here see a good appreciation along side cash flow. As your appreciation grows, rental rates grow, the investment here will grow organically over years.

Appreciation is also problematic in TX. That's because appreciation yields higher property taxes. Ie paying $1k higher property taxes would also negate $100/mo increase in the rental pricing.

So I'm really trying to understand if I can have cashflow positive properties in Dallas. I'm okay with waiting 1-2 years if it grows over time.

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Originally posted by @Andrew Bang:

Houston for cash flow, though positives for both markets. In Houston, cheaper price point in Class B neighborhoods, I'm still finding properties that hit the 1% rule. ($200k property can get $2000.00 month rent) as long as you stay away from homes that need flood insurance. I see Dallas appreciating at a higher %. So long term play for appreciation is Dallas, Houston for cash flow.

What's the monthly expenses for $200k property? Taxes, insurances, HOA etc?

Assuming 20% downpayment with 3.8% interest rate.

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Which one would bring higher cashflow on rental properties?
If also anyone invested in 2021 (or you've got clients who did that) could you please share your numbers?

1 Vote

All Forum Posts by: Sarp Ka

Sarp Ka has started 18 posts and replied 45 times.

Post: Can I invest through primary residence co-owner conventiona loan?

Post: Can I invest through primary residence co-owner loan?

Post: How to avoid PMI with 10% downpayment?

Post: How to avoid PMI with 10% downpayment?

Post: Property taxes too high - is cashflow possible for SFH rentals?

Post: Property taxes too high - is cashflow possible for SFH rentals?

Post: Property taxes too high - is cashflow possible for SFH rentals?

Post: Dallas vs Houston SFH Investment -> Which one is better?

Post: Dallas vs Houston SFH Investment -> Which one is better?

Post: Dallas vs Houston SFH Investment -> Which one is better?