All Forum Posts by: Torrell Palmason

If you are a US citizen then there shouldn't be too many issues as it is standard non-owner occupied loan. If you are not a US citizen then it will be an ITIN loan.

Best of Luck!

You cannot hire a property management firm for the first year "cannot be subject to any agreements that give a management firm control over the occupancy of the property" this is the verbiage from Fannie Mae. Owner occupancy rules only apply for that first year after that you are free to do as you wish.

Best of Luck!

You will not need to own a primary to be eligible for a Second home loan. Also, the Second home will not eliminate you from using an FHA Loan at 3.5% down.

The biggest requirements for the Second Home loan are you must occupy the property for a minimum of 14 days out the the first year, 1 unit only, and must not be rental property. That last one is why people choose to have the home as a STR as there is not rental agreement but you are still able to have the property cash flowing. There are other rules and requirements I just touched on the biggest ones, reach out to your lender to get a full rundown or PM me if you have any questions.

Best of Luck!

@Michael Blum The rates are increasing to be about the same as an investment property so payments will be comparable but you are still able to get in the 2nd home at 10% for a single unit rather than 15% for a investment property.

Best of Luck!

@Paul Herman Depending on what state you are trying to invest in I may be able to help. However this is a fairly standard loan and should be available with most lenders

As far as HELOC on an investment property, they are pretty rare but my company offers those as well.

If you have any questions feel free to PM me.

Best of Luck!

If you are looking for a loan for a STR, a great option is the second home loan. The down payment on a second home is 10% but is for a single unit only. You must occupy the Second Home for 14 days out of the first year which works well with the STR Model as you can schedule your stay around when you anticipate your busy time will be.

Other than that an Investment property loan starts at 15% down for a 1 unit and jumps to 25% for 2-4 units. 

Best of Luck!

That is absolutely possible! FHA is a very versatile loan.

You can get 1-4 unit with FHA with 3.5% down, you will receive credit for rent on your debt to income through either lease agreements if you already have tenants or when the appraiser comes out they will determine market rents. This allows a bit higher purchase power than if you had to rely solely on you income.

As far as the AirBnB you can definitely use the other unit as an STR if that is your choice. The downside to that is you will want two years of STR Income and reporting it on your Tax return so when you go to Refi or get a HELOC you can count that income.

Best of Luck!

If there is demand for housing then adding more housing is usually a good bet.

If you go to build the complex you'd want to plan to be cash flowing by completion of the project. That way if you chose to sell and the numbers were too low you could shift gears to renting and still be making profit versus subsidizing the monthly mortgage. Personally I think renting will profit more long term but selling will get you more funds in your pocket to start another project.

Best of Luck!

I would not recommend LTR, as the Second home must be suitable for year round occupancy and if you have a tenant it is no longer suitable for you to live in it. I know many people use a Second home as a STR and schedule 14 days to live in the home.

Best of Luck!

A method I would recommend would be purchase a FHA 2-4 unit Loan at 3.5% down for your first and live there for a minimum of 1 year. After the FHA the best option I think would be a VA 2-4 unit and live there for a minimum of 1 year. Now you have 3 homes that should be cash flowing and you can refinance your FHA to a Conventional as at this point you should've reached 80% LTV which frees up you FHA for use once again. If you did all that you will have 3 cash flowing properties and should be able to bypass the House hack method and start buying investment properties.

Another option is using the VA a second time and this gets a little sticky if you are buying and holding. After your first use you will have a remaining amount of eligibility for use that will depend on the amount of your first loan and the County loan limits that you are looking to purchase in. Anything over your remaining eligibility you will have to put down 25%. There is another option to reusing your eligibility if its all used up and that is a One time Restoration. This is one time deal and is only usable once in a lifetime. You will refinance out of a VA, use you One Time Restoration and it will renew your eligibility allowing you to buy another VA 1-4 unit for 0 down and killer VA rates.

There are many routes to success in real estate and it all depends on how you choose to play

Best of Luck!