All Forum Posts by: Account Closed

@Tom Potter That's a good idea. I've thought about refinancing but it always seemed expensive and complicated, and I was worried about not getting as good a rate. But with what I've learned so far on here, none of that may actually be true. I'll definitely have to look into it. As for reusing the VA eligibility, wouldn't that require us moving into each new house? We will probably need to do that once soon anyway for some more space, but I don't think my wife will go for it every few years with the little one...

Yes, it's got to be owner occupied. The best path to take is FHA 4 units first, then a larger 4 unit using the VA entitlement, refinance to conventional and then get a single family with VA.

0 Votes

Originally posted by @Anthony Caramanica:

My wife and I currently own our home valued at a little over one million. We found another home we really like as our primary residence. We don’t want to sell our current home , we prefer to rent it. The new home is under construction and does not qualify for a conventional mortgage , we would not have enough cash with a cash out refi as the new property is over 1.2 million. What are our options if any ? Thanks.

You have lots of options. What state are you looking at?

Tom

0 Votes

Originally posted by @Michael Craig:

@Mike S. something like a refinance may not require a broker (cut the middle (wo)man out). Quicken Loans is having a holiday cash promotion and Caliber Home Loans is what I used for my first mortgage (both great to work with and have their own sales team which do not charge commission).

Maybe a broker can find you better rates but it doesn't hurt to make some calls of your own.

Sales people that don't get commission aren't really sales people, they're order takers although I would think their compensation is tied into the rate in the form of lender paid compensation.

0 Votes

Fort Lauderdale, Florida

Originally posted by @Min Liang:

Hello all!

i bought a quad-plex bak in sept of 2018 as an investiment property in fort myers FL and now i want to buy a duplex... but to come up wit the downpayment of 25% + closing is lil too much for me to do. can i apply for the mortgage as OWNER OCCUPIED so i can put down less downpayment? if not, is there any way to go around it?

Occupancy fraud is the most common fraud when dealing with mortgages. If you're not actually going to live there, you can't just check the box and say you will. There are heavy fines and even jail time for those that get caught.

Tom

0 Votes

Originally posted by @Andrea Chester:

I'm at a loss on my best options on financing our next deal. We currently own two single family homes on a VA loan. One is our primary residence and the other is a rental. I inquired about refinancing the rental and could pull about 50k of cash out but would cost 13k of fees/closing cost plus increase our interest rate by 1.5%. We don't have enough cash to put down on a conventional loan. We've asked friends and family about partnering, however, no takers. I've always heard syndication is typically not for beginners and hard money should be a last resort because of how expensive it is. Any ideas on other creative financing ideas? I'm open to anything.

Refinance the current VA loan onto a conventional loan and get a HELOC on the other. Then use the full entitlement to buy the next property. Of course, you have to move in and live there, but that's the least expensive way to do it without much cash out of pocket.

2 Votes

Originally posted by @David Ordonez:

What are some of the consequences if I buy a duplex with FHA loan or conventional and decide to rent it immediately after I close on the deal?

FHA requires you to live in the property, but they'll insure up to a 4 unit property. It's an excellent way to get your first investment property. If you do a BP search for "house hacking" you'll learn more than you ever wanted to.

Welcome to BP

Tom

0 Votes

Originally posted by @Tim Kaminski:

I have an owner occupied conventional duplex. It's been a year and wanted to try to FHA into something bigger. 3-4 units.

Lender is saying the underwriters won’t buy that I would move from a duplex to a 3-4 unit and says that I would need 25% down to purchase.

Is this normal or should I pursue other lenders? Do I really have to explain that I’m just doing this to gain control over assets at a low cost?

To "gain control over assets at a low cost" is not what FHA is about. I linked to the section below that explains that FHA will not insure the property "if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining investment properties, even if the property to be insured was the only one owned using FHA mortgage insurance."

Tom

https://www.hud.gov/sites/documents/4155-1_4_SECB....

0 Votes

Originally posted by @Sally Hanan:

As a first-time flipper of a SFH with a goal of making at least 10k on the project, would you recommend financing everything with hard money (10.6% and 3 points, loan for $189k, interest $1,717/month) and a personal loan that covers the cash to close and hard money interest ($993/month)? I have a good contractor to work with.

I'd much rather present the contractor's portfolio to private investors and pay them the principle and interest back at the end, but I'm trying to come up with alternatives if that doesn't work out.

Purchase from a great wholesaler: 150k

Closing costs: $7,605

Cosmetic rehab: $30k

ARV: $225k

___________

120 day in and out average in Austin, interest $10,840, another 4,427 if sale is slow

Sally

Your numbers are too tight for a hard money lender to finance you. 80% ARV (purchase price and rehab) is 5 to 10% high. Your leverage is way too much to come out of this without a loss. The only people that will make money here are the wholesaler and the seller.

Your best bet is to find a multi family property and house hack it. Use a 203K so you can get your contractors in line and get used to being a general contractor. That way, your living costs are covered by your tenant, your interest rate is reasonable, you won't waste 5K on a wholesaler, you get valuable experience as a landlord and a general contractor and you add legitimate value to your home using the bank's money.

Tom

0 Votes

Originally posted by @Peter Jaglom:

Hi everyone!

Peter here currently living in Washington, DC. I'm still active duty Navy and have been moving all around the country and overseas the last decade or so. I'm looking to get started with rental properties, preferably small multifamily within 3-4 hours of DC.

My background in real estate:

~2007: Read Rich Dad, Poor Dad (and others from the series). Loved them, but couldn't figure out how to implement the concepts, especially later on when I was stationed out of the country. But RDPD changed out I thought about money and stuck in the back of my mind.

2013: Moved back to the states, knew I wanted to buy some real estate somehow, and used a VA loan to purchase a house in DC which I first house hacked before I knew what that was, then converted to a duplex and rented out when I left the area, and am now living in again with my wife and one year old. About four months ago we finally furnished the separated basement apartment and started renting it out on Airbnb. We love that this generates some extra income but still gives us the flexibility to use it for visiting family!

2018: Discovered Bigger Pockets through a combination of another blog and a friend who is a BP member actively executing his real estate plan.

My goal is to, in the next 7 years, acquire enough cash flowing rental units to fully replace my and my wife's income (maybe with a little help from my pension). To get there, I plan to learn as much as possible over the next 5-6 months and try to close on my first true investment property by the end of this year.

Hopefully that wasn't too long an intro post. Looking forward to meeting and joining in the journey with all of you!

Peter

Hey Peter

First and foremost, thanks for your service. We couldn't do what we do without guys like you on the wall.

I would refinance the DC house and replenish the VA entitlement. Then find another house to move into and use the VA entitlement again. Wash, rinse, repeat.

Welcome to BP!

Tom

1 Vote

Originally posted by @David Ordonez:

Can anyone recommend a private money lender to invest here in South Florida? I have a cousin with desired to purchase a duplex she just move to America about 3-4 months ago. She has about $30-$40k cash and has been working on a stable w2 job making about $4000 a month. She would like to purchase something but there is no way for her to qualify for a traditional mortgage, if you can help me I will highly appreciate it.

David

What's her citizenship status?

Tom

1 Vote

All Forum Posts by: Account Closed

Account Closed has started 0 posts and replied 22 times.

Post: Newbie from DC Looking to Start in Virginia, Maryland, or DC

Post: Refi primary residence

Post: Mortgage brokers advice for personal home

Post: Owner Occupied Multi-Family

Post: At a loss on how to fund my next deal

Post: Buying a duplex or triplex with FHA

Post: FHA Won’t Allow OO Duplex to 3-4 Unit?

Post: Using hard money and personal loans

Post: Newbie from DC Looking to Start in Virginia, Maryland, or DC

Post: Need help with lending, private lending or hard money