All Forum Posts by: Tyler Hodgson

@Aaron Claybourn - if you still occupy the property you would not be able to do a cash-out refinance due to TX50a6 laws. 50a6 rules only allow a TX cash-out on a 1-unit property.

You could do a cash-out up to 70% LTV with a 30yr fixed conventional loan if you do not occupy the property.

@Garrett Kennedy - even if you occupied that property you would not be able to do a cash-out refinance due to TX50a6 (home equity laws). VA Cash-outs are not allowed in TX at all, and only a Conventional Cash-out (as a 50a6) would be allowed. However, in your situation, even if you occupied this 4-plex you still can't do a Conventional cash-out because 50a6 rules only allow a TX cash-out on a 1-unit property.

As Kenneth mentioned, a VA IRRRL might be a good option. Or as Andrew mentioned, you could do a cash-out up to 70% LTV, if you do not occupy the property.

It's ALL about the relationships, being an honest person, and working your a** off! 

@Corbin Dallas - I purchased my first townhome with a VA loan, reduced my expenses with roommates, and kept that townhouse as rental property when I upgraded to my next home. That townhouse has cash-flowed well since making it a rental, even though the underlying loan was a 0% VA loan

Thanks, @Kenneth McKeown! I actually helped Bishara out on his mortgage when he purchased earlier this year! Bishara, I'll email you and connect you with my CPA partner who does taxes! 

 I agree with Jacob, I've seen lots of people use this strategy in the DFW market because of the difficulties in the MFH market

Conventional cash-out refi on a non-owner occupied will be capped at 75% LTV. Some private lenders (like Civic mentioned above) may have portfolio products up to 80% LTV, but those terms are far less favorable than conventional loans.

@Jesse Barahona - here is some IRS literature on the Section 121 exclusion. There are a couple tests involved, but most who are selling a property that they've lived in for the last 3 years should be eligible

https://www.irs.gov/taxtopics/...

@Scott Weigel - get out of the rent race and purchase a home as your first house hack. Since you have capital you can simultaneous search for a true rental property as well. You can easily grab two properties within the next few months!

@Stewart Gable you should connect with @Kenneth McKeown, he used to be a teacher himself. He's now an active real estate investor and a real estate agent here in DFW. I'm sure he'd be happy to give you some advice and insights about the Dallas market