All Forum Posts by: Ash Hegde

Hey Trent, for financing, you're likely looking at 15% down on the purchase price. After you flip a few properties this can drop to 10%, and after several more you might even be able to get 0% down. 

The partnership/investor decision is really yours, some people do great with them, some prefer to control everything on their own. If you ultimately decide not to partner, save as much capital as possible and even though you can get in with 15%, it might be a good idea to have more than that for reserves just in case something goes wrong. 

You're likely looking for a DSCR loan. You would qualify for this type of loan based on the rental income vs the mortgage payment. The downside is higher interest rate and fees, and they do not have low down payment options like conventional/FHA. You'll need 20-25% down. They work for investors who are limited by debt to income ratio though! Hope this helps.

Sounds like you have a good deal in front of you, go for it! 

Sure - with a multifamily house hack, like a duplex, you are able to use projected rental income from the units you do not live in to help you qualify for the mortgage. This is not the case when you purchase a single family home and rent out the rooms. You would have to qualify for the whole mortgage payment on your own. 

Agree with Jaron, an alternative is to buy a single family and rent out the rooms. The catch to this one is that it's a bit harder to qualify for on the income side because you are not able to use the rental income. If that's not an issue, it can be a great way to house hack. 

You can use both loans but not at the same time. They will both have a primary residence requirement. That requirement generally lasts a year, so you can use one now, live in it for a year, then move out and use the other for your next property. 

Unfortunately Discover can be stingy with credit line size. Nothing wrong with using credit card sign up bonuses and cash back for a rehab if you have the actual cash to pay it off. The biggest worry to me is Andrews point 2. If someone is doing a BRRRR and posts a high utilization on their cards the credit score will drop and make a refi difficult. Make sure to pay the card down before the closing date, if it reports with a max balance it will affect your credit even if you pay it all off the next day.

A CPA can help you maximize business deductions, but there's not much you can do to defer taxes on a flip. A 1031 exchange would not be available. The upside is quick capital, but for tax advantages you need to hold and rent it out. 

I was so glad to see this happen. Awesome option for house hackers! 

After you close on the sale you would have 45 days to identify a replacement and 180 days to close on it.  There are rules to abide by, but someone like @Dave Foster would be able to walk you through it and make it easier for you.