All Forum Posts by: Tyler OBrien

Anyone have any good recommendations?

Thank you in advance! 

@Matthew Brill thank you for the advice! I will stick to using FHA loan numbers for my calculations. Ideally I would like a property that I can do some costmetic repairs to and force appreciation to get to 80% LTV more quickly. If this were the case and I originally purchased with an FHA, you would suggest refinancing with a conventional loan? If I refinanced with a conventional loan, I would be required to live in the property for another 12 months after refinancing, correct? Thanks!

@Grant Schroeder thank you for the response! That makes sense. I suppose I was getting anxious and trying to 'make the numbers work' instead of just finding deals where the numbers work.

I am currently working with an agent, but he does not have experience with multifamily properties, let alone house hacks.

My lender does send an email to the listing agent with every offer I submit, validating my credibility. I may ask him to call going forward, after your advice. I think that might be more personable and convincing.

Thank you very much again for the response and advice, I really appreciate it!

Hey there BiggerPockets community! 👋

I have been actively trying to purchase my first home/investment property (2-4 unit house hack) over the past two months in the Phoenix-Metro area and so far I have put in offers on 5 different properties, but keep getting outbid. Currently in my analyses, to calculate my mortgage expenses, I am using the numbers from the FHA loan I plan on using to purchase the property. With this, I am trying to make sure I am cash flowing at least $50 a unit once I move out of the property in a worst case scenario (accounting for all other expenses besides mortgage such as property tax, insurance, repairs, vacancy, cap ex, etc.).

However, I recently heard a real estate investor say to always use commerical loan numbers in real estate investment calculations (25% down, slightly higher interest rates, no mortgage insurance), even if I plan on originally using an FHA loan to purchase the property. Is this correct? If so, it would increase the purchase price on most of my offers, making my offers more competitive. Also, I do plan on refinancing out of the FHA loan once the property has a 75% or 80% LTV ratio.

Should I switch to using commercial loan numbers in my calculations, or should I stick to using FHA loan numbers since that is what I will originally be purchasing the property with?

Thank you in advance for any advice!!