All Forum Posts by: Vanessa Ivonne Hernandez

I struggle with analysis paralysis - researching, thinking, researching some more. The truth is you never know and you can never be 100% sure, you just have to take the plung and go for it. You can't fail if you don't quit. 

I want to add that there is a lot of great advice from a lot of different sources. Find ONE source, follow it, copy it, make it your own. If we draw information from too many places then we can end up feeling overwhelmed and get stuck not taking action.

You already received great information here so I'll add this (because I'm biased) that working with a mortgage broker will be ideal when looking for lenders. Brokers are there to shop different loan products that are going to help you quickly reach your goal, instead of being limited to one lender. For example, before I became licensed I thought FHA and Conv were the only ways I could build wealth. Now I know there are other creative financing solutions that are aligned with my real estate goals because I needed the extra financial help in the beginning.

Good luck hunting! It sounds like you have the right mentality to take this on. Stay blessed.

I live in Jersey own property here but I'm building my portfolio in the Midwest. Personally it's more affordable for me, better landlord/tenant laws, and I can use a DSCR loan to get more property.

Like you I have issues with income and credit so my DTI was not where it needed to be. I couldn't just wait around so I had my boss do DSCR loan for me because I can afford the 20-25% down payment. It was a quicker closing time because my personal income wasn't being analyzed, and we instead used the cashflow from the property to close the deal.

An option: purchasing a property with an accessory dwelling unit (adu) for your family. So you can have advantage of living in a conservative adu space while working towards your financial freedom with rental income from the primary residence. 

Good luck on your journey!

My brokerage does DSCR loans. It's usually my go-to for investors who have a higher down payment.

There's already good information in here on DSCR loans so I suppose the only thing I would add is to do business with someone who understands your real estate goals and how you're trying to scale your portfolio.

To follow up on what @Steven Foster Wilson said, I'm personally looking in Ohio too because I live in Jersey and the market is too expensive for me.

As a mortgage broker, I learned I can use a DSCR loan to purchase in more affordable markets and not have to supply my personal information (because DSCR loans use the cashflow from the property to qualify the loan, not your personal information). This is important because my DTI is not where it needs to be to qualify for a loan normally.

Something to note, DSCR loans typically require higher down payments (20-25%) so using this strategy in an affordable market is super important.

Good luck on your journey!

Looks like you have your bases covered with the responses in here so I'll add this:

Have you considered investing in a less expensive market? Of course you wouldn't be able to house hack (unless you plan on moving) but consider that 3.5% down in an expensive market could be the same as 20% down in a more favorable market. If you're itching to get in the game then possibly investing from a distance and getting cash flow could be your first step towards ultimately investing in the places you prefer to be.

Things to think about. Best of luck on your journey!

 Hi Harold, I always recommend downloading the Meetup app. The app is free and you can search for different types of group gatherings in your area. I'm part of three groups for Northern NJ. They are:

1. New Jersey Real Estate Investors Association (REIA)

2. Multifamily Landlord Networking Meetup Group - Northern NJ

3. Real Estate Investors United

I operate in Northern NJ which is about an hour from Trenton. Trenton is closer to Philly than NYC.

I cannot comment much on how that specific market is performing but in terms of calculated risks - definitely make sure you account for major repairs (roofing, hvac), minor repairs (paint, plumbing), vacancies, the property taxes, the proper insurance for the property type and to reduce your liability as a landlord, etc. 

There's a lot of calculations that go into it and being here at BP is going to really help you along the way with the available real estate resources. Good luck on your journey!

-V

A lot of good information is in this thread. I'll just add this: 3.5% down over here can be the same as 20% down in a less expensive market. You may want to consider investing out of state in a more desirable developing market, and eventually get your next property in your preferred market. Happy Hunting!