All Forum Posts by: Ziyan Liu

@Ziyan Liu I wanted to post here as well in case others were researching this same topic.

First, Bigger Pockets has a very active Texas forum.  Feel free to post there if you would like more of a local response to things.

Second, you can absolutely, 100% do 15% down with a Fannie/Freddie loan.

Third, it's kind of difficult to find "investor" friendly lenders in any market.  So we usually rely on other investors to kind of point us in the right direction...and bigger pockets is a great resource for that.  Generally speaking, a smaller, local lender has better odds at being investor friendly...but even then, how do you know?  I created a list of questions for you to ask when you are interviewing a potential lender.

Questions for Lenders

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. When do you start using “After Repair Value” on my property?
3. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
4. What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
5. How many loans can I have with you?
6. Can I change title to my LLC?
7. Do you sell your mortgages?
8. What is your loan minimum?
9. Can you explain to me what your reserve requirements are?

Hope this helps!  And thanks for the mention @Chris Mason

It often times depends on the group.  If it's a group of friends that is moving into a house together I won't bother furnishing the place.  If it's random students/young professionals claiming rooms one by one then I'll put more of an effort to have a couch, table, tv etc.  We even have a nice pool table in one of them!  My properties are all within 5-20 minute drive of community colleges and ASU.  I used to do this when I got a smoking deal on a cleaner but I'd send a cleaner in twice a month who charged me $40 each time to clean the kitchen, floors, bathrooms.  I would have the tenants split the 2nd $40 charge if they wanted it and I found that people were just generally happier and kept the entire place in better shape.  It's like doing the dishes...when there are no dishes in the sink and you put one in there you will clean it.  Once it starts to fill and gets messy then no one bothers even doing their own dish.  My cleaner unfortunately left AZ so I need to find a new one...

 Cameron, this is so smart! I love the idea. And the tenets are wiling to pay for it too since it's not much once you split the bill. Brilliant.