All Forum Posts by: Shivam Patel

@Joshua D.

Okay, only reason why I was saying that was thinking that was because may need to wait a lot longer for the next property because I'll have to reach 20% for the next one right instead of 3.5%. But you're absolutely right because of the low interest it's a lot better to hold the FHA right?

@Stephanie P.

Okay. I'll do that. I'll start saving 20% for the fourplex then. Thanks

@Lynne Smith

Yes so I'm house hacking with an fha.

Just you guys have an idea: I get 1800$ in rent and my mortgage is 2100 and some change. I bought the property at 315k and it's appraised now to around 345kish with the hot market. However I put more than 3.5% down when I bought the property, maybe close to 10. My loan on it righr now is about 286k. And I have about 25k cash. I save about 4000 a month. After I rent the whole house out, my property manager estimates about $2400 in rent (conservative).

Now for the investment property. I'm guessing I can't use HELOC because I don't have 20% equity yet. Based on the conversation above it doesn't sound like I can refinance either unless it's an investment property refinance. But then I can't live there until I find my next property. My only option seems to be holding the FHA loan with the good interest rate for now, and buy a fourplex with 20% down after I hit my 1 year in September. But even then I feel like a fourplex at 20% in my area would be close to 40k in just the down payment. I know I can't sell because I'll take a loss either.

My main purpose is to get another investment property but not live with my tenants. I didn't think it through the first time and I need to keep a buissness professional relationship with them so getting into a small multifamily makes more sense to me where my walls are seperate. Also with the work job change I wanna be closer to south jersey.

My options that I'm thinking rn:

1. Refinance into an investment loan, and move out and live with my parents for a few months while I apply for an fha and find a new property. Even though my interest rate would be a lot higher it will give me another tenant in, and cashflow and reset my fha.

2. OR refinance into an investment loan and then use a 1031 exchange into an investment loan for a fourplex. And then work on using the primary loan.

@Jeremy Komer

You mean 75% not 25% LTV right? And what an 80 10 10 and how can they loan 125%? How does that work, did they used to lend more than the house is worth?

@Steve Vaughan

Haha, I'm learning so much all at once. I do appreciate you, Zach, and all of you guys of kind of explaining this.

@Steve Vaughan

Is MIP and PMI the same thing?

@Steve Vaughan

I need to read up on all this, it's not often talked about on the podcast. Any good resources recommendations to learn about all this. Seems like there's a lot of ways to mess up, and I don't wanna do anything illegal and run into issues.

@Zack Karp

Okay.. so then I can't do that either then. I didn't know that was a thing either... So I can't stay there if I refinance into a conventional investment type and would have to rent somewhere else and then apply for an fha?

@Zack Karp

Ohhhhhhhh so that's where the disconnect is. There's a difference between conventional loan and conventional investment loan. So when I was reading up on it and listening on the podcast theyre actually saying refinancing into a conventional investment loan, not a regular Conventional loan. That makes sense. So if I refinance into that, (I would have enough to 25%) then I can wait a little bit and fha into another property without doing anything wrong right?

@Steve Vaughan

Ahh I see, I'd like to keep it as a rental. But later down the line if I wanna 1031 I have to refinance it into a investment type loan right? And if I do that I won't be required to reset the 1 year because it's investment type right?

Now that I know this of resetting 1 year mark whether you get fha or conventional.. I think I'll be very careful about locking myself into something like this. I used to think that you could refinance out and then not be required to stay. I had no idea that even refinancing into conv you'd have to stay there a year again.. I need to read more into this.

Because investment loan has the around same LTV, why do people go for conventional. I mean you have the option to 1031 out, and not be required to stay or anything. Isn't it just better to do an investment type loan everytime then? I wonder what strategy's(legal) people use. Hmm..