All Forum Posts by: Tyler Quick

Quote from @Josh Young:

Congratulations on buying a primary residence, that is the best way to buy your properties. Keep saving and learning, you don't have enough equity to make the refinance worth the increase in interest rate. Save until you can buy another primary residence with a conventional 5% down. If you need to put a lease on the 1st house to qualify you should be able to count 75% of the rent on 1st house against your DTI.

Why would a refinance not be worth it, if I were able to use the equity to put a 3.5% down payment towards another FHA loan(next primary residence)  and the first property would cash flow 300$ a month after the refinance, isn’t this essentially BRRRR’ing my primary residences ?  Isn’t this what investors do all the time ? Cash out on equity to buy next property ? I would definitely love to keep my interest rate I have now, as I know they will prolly never be that low again, but I’m not as worried about having a low interest rate as I am to getting started

So what would be wrong with CASHOUT refinancing if the property would still cash flow 300$ a month and I deployed the cash into another primary (looking for property’s under market value, in hope of being able to repeat process again every 1-2 years with forced and natural appreciation? The equity that I have gained is not only due to the market but also some forced equity. the appraisal was only based on a drive by appraisal(since it was appraised within 2 years of being bought), they haven’t seen the recent updates, so I believe it could appraise for more but not counting on it. IF/when the market does correct, ( which I don’t believe would affect my cheaper market much) (ex. Current value 180k-200k , say the market dips 10-15% it would only drop to 153k-170k), I could be underwater at those numbers, but if the tenant is paying the mortgage in a hot rental market( low vacancy rates ) what would be the worst that could happen, I don’t mind taking the interest rate hit if that means I’d be able use the cash to put down on next primary and if my current property still cash flowed 300$+ a month 

Hey BiggerPockets team, I’m new to investing and have been digging deep for almost all of 2022 trying to figure out the best way to start out my real estate journey! 
Little background , I purchased my primary residence in November of 2020 for 140k with a FHA loan(intrest rate is 2.75) and have gained some equity since(currently apprasial 180k) I have opened a HELOC and currently have access to 15k from it.
At first the BRRR strategy seemed very interesting especially since I will be primarily using a Heloc to fund it all, and I didn't want to be tied into those funds for very long, but after talking to a few lenders and making a few offers on properties, I was notified that I would not only need the 20% of purchase price but also would need some funds put back for rehab as well.( most say 100% rehab but want you to cover aportion until they see work is completed and they reimburse in portions) so at the moment BRRR seem to be out of the way.

So I have been looking into the STACK method, and plan to move every year and turn previous residence into a rental, since I have now been in my home for the required time(1/2 years FHA requirements). The time has come to where I'm looking at other properties, but I'm wondering how to get into the next one, I've gained enough equity to where I could refinance my current residence (current payment is 950$ ) with rates the way they are if I refinance I would be looking at around a 1250$ payment. And FMR is around 1500$ so I would still cash flow and could get into the next property with a FHA loan (3.5% down) , but I have also been hearing about 5% conventional options? If this is true, should I look into the 5% conventional instead of taking the intrest rate hit and also having to close out the Heloc due to refinancing or should cash out refinace my current residence take the cash to use on the next property instead of using the Heloc and repeat every year assuming that I can get a property for under market value and use the equity every year to purchase the next property? Just needing some outside eyes looking in to see a diffrent perpective, I feel as if I get so stuck and don't know which move would put me in a better position for the next , any help is appreciated !

Good afternoon all, I’m somewhere in the beginning of my real estate journey, I’m looking to purchase a second property and build my portfolio by using the ”stack” method at the very least acquiring a property every year or 2 depending on what the loan allows (owner-occupied loans), I’m looking for a mortgage lender who works the southern Indiana region and also understands my plan and goals, should I be focused on finding a good agent who will then have a lender or should I find a good lender who will then have a agent ?

I'm looking to turn my primary residence that I have lived in for over 2 years now into a rental and buying another primary residence, how would I go about doing this , I know I am only able to have 1 FHA loan at a time so does that mean I will have to put down 20% on the second property? I've been hearing about 10% down vacation homes or 5% down on secondary residence, my goal is to buy a new property every year and possibly house hacking a few along the way , but getting stuck at the 20% down

They lend 100% of 70% of the ARV

That what I was thinking as well but that is why they are saying the charge the 3500$, they also said once I was approved I was approve for up to 3 deals and there 650$ evaluations also include letting you know if it is a good deal or not and this is there way of securing there investment rather then ask for 20% down like what I have mostly been seeing (80% LTC and 100% rehab), I havent ran across any 90% can you point me in there direction to do my due diligence?

I’m here today to ask if anyone has worked with “Do Hard Money” they are a lender who charges 3595$  for the tools and services they provide such as analysis tools and proof of funds directly sheet accessible on the website at all times, along with “managers” who are suppose to help you along the process with things that come along, finance closing cost and take care of inspections through what they call “evaluations” that cost 650$  per evaluation for on market deals and free for off market deals, you also get a rebate back of 2500$, The biggest upside to all of this is 100% financing for rehab and down payment, this would be my first deal so all of this really appeals to me , but I can’t get past the idea of what sounds like a sales pitch to me and this idea of them “holding my hand” through the process, most places require 20% down and around 10k for a draw back account where on the other hand I can get into a a property with them 100% Finanaced and maybe have to come out of pocket a couple thousand after evaluations and services fee, I’m not afraid to put some skin in the game but other lenders are just a little out of budget for what most are requiring (20% down+10k holdback), thanks for any feedback !

I'm looking to purchase a property and possibly convert into Multifamily but I'm needing to know how run comps on a SFH converted into Multifamily, do I run comps for SFH in area, do I look at cap rates, I am in Midwest market and I know cap rates generally run higher , but needing to get general idea of what ARV will be

I'm looking to purchase a property and possibly convert into Multifamily but I'm needing to know how run comps on a SFH converted into Multifamily, do I run comps for SFH in area, do I look at cap rates, I am in Midwest market and I know cap rates generally run higher , but needing to get general idea of what ARV will be