All Forum Posts by: Steven S.

Congrats! My plan is to do exactly the same thing, I just hit about 20% equity on my primary residence and cannot wait to refi out of my FHA loan. Did you have to settle on a duplex instead of a 4plex? Care to share any of the numbers of what you expect from cashflow, etc? Thanks!

Meh, on a million+ dollar loan, PMI over the entire life of the loan is going to be hundreds of thousands of dollars, right? It would be interesting to look at the actual numbers. Obviously you are borrowing money for cheap, but in the long run how much more money are you saying goodbye to with the PMI and paying interest for that long of a term? Not saying its not a good idea, just curious.

So with the commercial fha loan the PMI does fall off? Because it does not, ever, with the residential fha loan. Correct?

I found this blog post interesting and informative:

http://www.biggerpockets.com/renewsblog/2015/05/20/tax-benefits-real-estate-investing-rental-properties/ 

I think you are right, the first step is a modest home putting down 5%. I have no idea what the comps are in your area, but 200k isn't enough capital already? Pay cash for a rental then use a HELOC for a down payment on another one?

 - 80%. I owe 108k on the mortgage and a conservative estimate for the home's value would be 135,000

-I would prefer to use a conventional 5% down on my next home(Multifamily). FWIW I don't need to be in a hurry and pay full retail, I will only buy something if I will be able to already have some equity in it.

Thanks!

Hey Everyone,

I am getting very close to the point where I can refi out of my FHA loan on my primary residence into a conventional mortgage to get rid of my PMI.

Once I do that I would like to make my primary a rental and look for a multifamily I can house hack.

My question is, do typical conventional loans have the same rules as FHA when it comes to renting the property? Would I have to live in my primary another year after refinancing before I could make it a rental?

Also, has anyone moved multiple times to take advantage of the lower down payment requirements? I do not want to overleverage myself, but I wouldn't care if I bounced around for a few years house hacking different multi-families if it means growing my portfolio that much faster.

If you go with the FHA loan you will have to live there. You would also be required to live there for a year before moving out. You can refinance out at some point to get rid of the PMI. There are specific rules regarding receiving a down payment gift you will need to research. Hope that helps!

Not trying to hijack this thread, but this is exactly what I am wondering about my current home. 

I currently have 25k in equity. My mortgage payment is $900/month and I could rent it out at $1200/month. In about a year I will have enough equity I will be able to get rid of my mortgage insurance which would increase my cashflow closer to $400/month.

I can't decide if I should move and rent this property out, or stay a few more years and try to maximize the cash I could get from selling and pay cash for a different property to rent.

Any thoughts?