All Forum Posts by: Trevor Reed

Hey Brendan, as a mortgage broker I work with a ton of realtors that specialize in investment properties, I'll send you some info. Congrats on joining the madness of RE investing. 

Hi @Hunter Nall, There's a number of options you may have with this that can yield a higher LTV (loan to value) than 70%. Conventional, DSCR, Bank statement, which may suit your situation differently depending on the deal. I know someone mentioned rural, you can still do a number of loans if it is, but they are a bit more limited than a non-rural. Depending on where the lake house is, you may have difficulty with comps, but appraisers can use one comp heavily and the other two as supplementary (3 comps minimum) if there aren't a lot available.

What Jay said is accurate. If you have a Texas A6 loan currently you cannot get a HELOC. It's been long enough, you could rate/term into a conventional loan then get a HELOC or do another cashout refi, but more than likely it won't make sense since you have a lower rate currently I'd assume. Of course you'll want to check your closing docs to be certain. There are some private lender's out there that may be able to work something out but make certain you use a lawyer before engaging in anything like that. Happy to be a resource and answer any other questions you may have.

Hi Saumel, 

Great decision jumping into real estate investing.  House hacking can be a very powerful too... if you have the flexibility to move which tends to disappear once you have a family - as you're experiencing. 

In terms of the gift, that is totally fine as long as your parents firm up the gift which will involve a gift letter and often times a statement form your bank account showing the available funds. Typically you end up house hacking over the years, not months. The reason is, the UW will ask questions as to why your parents are moving form primary home to primary home - there must be a reason if it has been within the year. There are many reasons, but the main ones are: new job, need more space for a growing family, and a job transfer. Again, there are multiple reason that may justify getting another primary, but RE investing is not one of them. People get tempted often to commit occupancy fraud, don't be one of those people. Assuming your parents aren't veterans, you could go 3.5% with FHA or conventional (assuming 2 unit) you can do 15% down - remember you will have mortgage insurance though. Even though I'm in Texas, these are federal guidelines so they should be accurate in whatever state you are thinking about.

Hi Angelica!

I'm in the DFW area and work with multiple investors in all of the major cities - included Houston. I'm an active investor in the DFW area and think it bodes one of the best home cost vs rental market in TX. At that price point you'll most likely need to move further from the main areas and I'd suggest moving North of DFW. Rents have been strong and the demand for housing and increased interest rates have kept people renting as they "wait out" the rates (same people who were "waiting out" the surging home prices). Sanger, Potsborro, Denison (all north DFW) have been very desirable as of late and there are opportunities for duplexes up there as well when you get to that point. I'm currently working with 3 people all buying up there and the rents have been strong even in a slower rental time of year. The problem I see with investors in Austin (usually Hutto, Round Rock, Pflugerville areas outside of Austin proper) is the home price vs rental price is not as strong - meaning less cash flow. Many investors are seeing this as an equity play but I'm not seeing as strong of cash flow from those due to higher priced homes and not corresponding rental rates. I like SA over Houston due to the ebbs and flow of the job industry and SA offers some military housing elements, if you are interested in that model. You didn't specify what type of investment, e.g. long term, str, rent by room, etc.. so my statements are assuming a long term lease. Obviously if you are considering str you will want to look into more destination areas, foothills and/or coastal or even areas near stadiums and/or lakes (which we have tons to choose from). I'll PM you so we can connect and I'm happy to give any other insight. Welcome to the madness for REI - it's still awesome despite the craziness.

I'm an investor in the DFW area and you definitely need to be looking further out of city center.  Tyler, Krum, Pottsburrow, etc.. all have strong rental markets vs price.  Especially now as we are seeing rates rise, we've seen an uptick in price reductions on homes.  

Welcome @Kent Williams.  I'm a TX investor myself.  I'm in the DFW area but would love to connect.

@Karen Pendergast This is possible. To answer your questions in order: 1) You definitely can do a cash out refi on a property you purchased with cash. Quicken is ... not a good resource :) 2) Most loans will require you finance the property in your own name, then you can transfer it into your LLC after closing. You can do a DSCR or other non-QM loan and finance it in a LLC from the beginning but it usually does not have as favorable rates. 3) This is an investment property it appears and HELOCS are not common on non-owner occupied homes - a cash out will probably be your best option here. 4) see #2, and if you do a non-qm loan it's no issue as long as you can prove you own the LLC. 5) Cash out refi while focusing on keeping your property cash flow positive so you can easily keep acquiring properties.

Should be fine.  You clearly have work experience in the same field and no gap in employment.  Offer letter (employment agreement and paystubs in hand (assuming the paystubs support the 200K) you should be fine. I am assuming you currently have less than 25% ownership in the software company that you are employed.  A mortgage broker license in Oregon should be able to make this happen I would assume. 

@Mark Tacazon I sent you a message.  Thanks for reaching out.