All Forum Posts by: Tyler Hodgson

Yes, it will have PMI just like other Conventional loans with 5% down

Here is the link to the source, although it's mostly mortgage professional related stuff: https://singlefamily.fanniemae.com/media/36841/display

House-hackers and agents rejoice!

Starting Nov 18th buyers can purchase a 2-4 unit primary home with just 5% down on a Conventional loan (Fannie Mae) 

For context: 2 units used to require 15% down (some exceptions), and 3-4 units required 25% down.

Home buyers will be able to generate rental income with minimal out

of pocket as long as you occupy one of the units. 

FHA has been the go-to for low down payments on 2-4 unit properties, but there are definitely some big benefits to being able to do this using a Conventional Loan.

Great to see you win even in this market where many are struggling to find cash flow or offset their expenses. 

For the next deal do you plan on buying it as a non-owner occupied or are you planning on moving to a new primary residence and keeping this current one rented out? 

@Farhan Anwar belated welcome to BP! Glad to hear you are ready to start taking action. The biggest step is finding (and starting) your first deal! 

I am also in the DFW area, and I went to college at UNT; personally I think Denton is still a strong market (along with a few other pockets in DFW). 

I'm a mortgage broker, so happy to talk about financing if you have any questions; DSCR loans aren't as scare as some lenders make them seem, but there are some nuances to be aware of!

In my experience, condos usually lag single family homes when it comes to cash flow and appreciation. 

When I'm considering options like yours (sell or keep), I try to weigh the opportunity cost of the equity deployed. In this case you have $150-200k invested in the condo, if you keep the condo how much profit will you make in 5-10 years? If you sell the condo and redeploy that capital into other investments (maybe 2 single family rentals) will that expected return be greater than the first option? 

This definitely depends on strategy (rental/flip/etc.) and class preference (A/B/C/D). Personally, I like Lewisville, Carrollton, Irving, HEB. There are lots of great options on the outer edges of the metroplex too

Dustin, in addition to the interest rate you need analyze the lender fees and the mortgage insurance to make sure you are comparing apples to apples. Feel free to drop the Loan Estimates here if you’d like me to help you review 

This Thursday we saw a massive improvement in mortgage rates (Mortgage News Daily screenshot below) after better-than-expected inflation data from October. Do you think this is a turning points for the Fed to slow down their aggressive rate raising strategy? I'm hopeful that inflation will continue to tick down for the next few months, which will allow the Fed to ease up. 

Those who have been on the sidelines for the last couple of months, may want to consider making moves in the coming weeks. With prices down, sellers willing to negotiate, and rates potentially on a down-trend, this could be the ideal time to make some purchases (wefore everyone else catches on)

What are your thoughts? 

Investment Info:

Other commercial investment investment.

Syndication and development of 130,000 net rentable square feet of Class A Self-Storage in Houston, TX.

$19M total project cost

Closed on the land - September 2022
Construction begins - Q1/Q2 2023

How did you finance this deal?

25% investor equity (accredited investors)
75% construction financing (5/1 ARM)

What was the outcome?

In progess