All Forum Posts by: Stephanie Wells

Thanks, super helpful! So a down payment more than 25% (this is the conventional investment down payment amount we were quoted, which seems a little high)? Do you know roughly what percentage the down payment usually is for an asset based loan?

Looking to either HELOC or COR on a duplex I have to get some cash to use as a down payment for another investment property. Although we'd get more cash from the COR (about 160K) the fees are insane, and I'm not sure if we will be able to beat out cash buyers in our market so who knows how long we will be sitting on our cash if we go the COR route. Does it make sense to get a HELOC first (100K max, 5 years at 5%), use that 100K (or less) as a down payment for a multi-family...Then do a COR on the duplex to pay off the HELOC + have some extra cash leftover to buy another property or pay down debt? Do you have to wait a certain amount of time to take out a COR when you have taken out a HELOC on the same property? Fees for paying down the HELOC early? My head is spinning over here.

I was speaking with a lender who told me about unconventional mortgages where you don't qualify based on your income, but instead on your credit score and how well the property cash flows. I had no idea this even existed, and am wondering if you all have experience with this type of loan and what the catches are, as it sounds too good to be true. Does the property have to have a certain amount of cash flow? A big cap on how much the property can cost? Etc.

I am asking because I am in a situation now where I do not like my permanent part-time job, but am hanging onto it since it has helped us qualify for mortgages in the past. I had another opportunity come up that is work from home, but the job is contract with less pay and wouldn't be able to help me qualify for a conventional mortgage. Not sure if I should risk quitting my W2 job on the hopes that I could qualify for an unconventional mortgage. Any input is appreciated!

I'd be happy to help! I am in the Tampa Bay area (Clearwater to be exact). Let me know what areas you are looking into and I can give you some insights!

Nikki wow 11 units is our dream! The first place I was drawn to when researching was Ann Arbor area actually - seems beautiful, near detroit, and family friendly based on the research I've done. Talking with our bank today, but I have a duplex with about 300K in equity that I am planning to tap into and do a cash out refi. Would love to be able to buy a multi family and a nice single family 3 or 4/2 near there so we could have the option to get out of Florida over the next few years. Would love to hear about your experience doing any out of state buys, as not seeing the property kind of freaks me out!

Thanks for your replies! Brandon to clarify - the duplex is cash flowing really well at $1520/month (This number is after factoring in my mortgage, insurance, and taxes)… I don’t think I’d be able to make that much off of the 2-3 properties I’d be able to purchase from selling it right now the way the market is. Let me know what you think.

Jonathan you are right in sensing my urgency! I’m hoping to leave my job in the next year and fear we will no longer qualify for a mortgage with only my husband’s stable income (I would still work but it would be my own business that would rely on finding clients). Good idea to focus on improving the property I already have, as I could probably make some improvements to charge more in rent once the current tenants leave.

Appreciate any input! Here is my situation:

Only have 5K cash to put towards my next property. Having a hard time saving due to our current life situation so don't see this amount going up in the near future. I work part-time and my husband works full time so we would qualify for a conventional mortgage with a 25% down payment.

I moved into a single family home with my family this past January (30 year mortgage).
I have owned a duplex since 2015 which now cash flows nicely (gross of $1520/mo.) + has a good amount of equity because the area became extremely desirable over the past 2 years (still mortgaged with about 300K in equity). 

I was hoping to be able to buy another multi-family or even single family investment, but I'm now learning how hard it is to get a HELOC on an investment property (even more of a bummer to learn this because I was living in the duplex before moving and probably could have qualified for a HELOC before moving out!*smacks forehead*)

I really don't know about taking out a home equity/personal loan to use as a down payment since the money may be collecting interest for awhile since the market is so insane with homes getting snatched off the market by people with cash down payments and cash.

Is my only hope finding seller financing or is there something I'm missing? Thanks for your input!

Thank you for sharing! I own a duplex in Florida and am in the process of getting approved for a HELOC but don't think we can afford anything in FL so somehow I've landed on the the MI market. I know NOTHING about MI but like that it is affordable and so climate change friendly. Would you mind sharing what you use to calculate cash flow, any realtors you recommend, and which cities in Michigan are best for investment (and living for that matter, as we may move out of FL in the future!) Thanks so much.

Paul did you end up buying in MI? How did it turn out? I live in FL and am looking for something more affordable to invest in but know nothing about MI or its market!

Looking to temporarily move into a single family or duplex to lock in the low down payment rate and rent it out later, but that means less cash flow. What is a good range of cash flow to expect when only putting down 3.5-5%?