All Forum Posts by: Zach Rubin

Greatly appreciative Joe. Definitely helps to understand the best route to go. 

Quote from @Joe Villeneuve:

If this is truly going to be a rental property in the future, then it's a waste of money to make extra payments. On a primary, your income is responsible for all the mortgage payments, so those extra payments will save you interest. However, on a rental, you are NOT the source of funds for the mortgage payments,...your tenant's rent is. The only cost to a REI is the cash that comes out of their pocket. Making extra payments is just adding to your cost. Your tenant is already paying for it. This means those mortgage payments are free to you..so don't help your tenant out.

Understood. My idea was as long as we are using this as the primary we would make extra payments because I would rather try and chew down as much as the principle as possible until we can refinance at a way lower rate than what it will be now, have that lower mortgage payment by the time to rent it out, LTR/STR, and be able to receive a greater amount of cashflow.  

Hello community,

The wife and I just purchased our first property that will be our primary for the first year or two on a FHA loan. We do plan on refinancing it after that time due to the ideal interest rate we are probably receiving as well as turning into a rental. My question is should we make extra payments monthly to help reduce the amount of that time or not bother because of the high rate? And just save that money for future investment/property purchases?

The more reading the better! All the books welcomed! Haha This is great information to go by and I do greatly appreciate it.

Quote from @Sylvia H.:

I purchased this way and it was an excellent way to get some repairs done and have one mortgage closing. Repairs cannot be more than 35K with FHA. You will put in your offer and get a quote from a contractor to complete the work. You can get. loan for updating furnaces, painting, pretty much anything that will improve the home. You could not for instance get a swimming pool or anything like that. They underwrite it as one loan and when you close the work can start. You will have to find a lender in your area that offers these types of mortgages. Word of warning. All FHA lenders are not created equal so look around and make sure you are dealing with a lender that can do what you require. Best of luck. It's a great program.

Thank you Sylvia for that information. Now would I have to search for a contractor myself during this process or would lenders have recommendations to contact? 

Helloooo fellow peeps!

The wife and I will be looking for our first property purchase in the 1st quarter of 2023 and would like to use a FHA203K loan as our way of finance if a property is in our favor. I understand the fundamentals of it and I would like some experienced opinions on this. Those who have done this before please give me your insight on the process! I believe it’s an excellent way of a “quick” and “instant” (hence the quotations) equity gain on a property.

Thanks everyone!

Hi guys! 

Would anyone be of knowledge and assist me to understand what could be used to invest in new construction homes from the builders themselves and turning them into rentals knowing about fiscal years for them, when they need to push units out, posting numbers of that nature in order to be able to (be ahead) of other buyers? 

Thank in advance!