All Forum Posts by: Troy H.

@Troy H. Not necessarily extremely low but there is a max income.  It's more from what I saw people that need education on basic financial skills and by basic I mean very basic

@Troy H. Community 2nds are down payments assistance programs that are backed by a community program that is designed to encourage home ownership among lower income people. They are typically backed by funding from a government organization such as the city or county. Down payment assistance is provided in the form of a 2nd mortgage and each one can be designed differently. Some of them are forgiven after a certain period of time. Some of them you never have to make payments on - you just pay them off when you sell the home. It just depends on the program.

@Troy H.

I'm pretty sure this is current. You must pay PMI for a minimum of 2 years and up to 5 years. After that if you have reached 20% equity you can request, in writing, that PMI be dropped. Once you hit 22% the Lender is required to drop it. An appraisal may be required to confirm your request.

Of course if you Refinance out of the loan it will also go away.

@Brad Farber @Jay Dertzbaugh @Troy H.@Steve Kontos

Howdy @Lucas Hallenbeck

What you are going to find is it is difficult to achieve positive Cash Flow while using the House Hack strategy.  You are only receiving 50% (Duplex) or 66% (Triplex) of the potential income while you are living there.  If you can get into a 4plex you have a greater chance of some positive Cash Flow.  Many investors that use this strategy accept they are basically only having their mortgage payment paid by the tenants.

It is a good strategy in order to get into the game.  You must conduct 2 analysis with this strategy.  First as if you are not living there to determine if it will Cash Flow.  Second, with you living there to determine if you can afford the remaining expense amount with your current income.

As far as the private mortgage insurance (PMI) it is required if you have less than 20% equity in the property. When you purchase with an FHA loan and a 3.5% down payment you will need to pay PMI until your equity increases another 16.5%.