conventional loan How did you add value to the deal?

@Miciah FurbayBuy a primary residence in a good area using a 5% down payment convention loan, don't max out your DTI, in 12 months buy another primary residence with another 5% down payment conventional loan and start renting out the first one.

I have ALSO heard its not about timing the market rather time IN the market, so this is where a SFH could potentially be "easier" to find.Im constantly in a headspace where I tell myself I have to get really creative to finance a MFH or come in with a 5% conventional loan and fixing a MFH to force appreciation although cash flow may not be there the first year or two.

There could always be infinite reasons why people would do it, more curious if there is a strategy that people are using in these cases if the intention is "conventional" investing, Henry offered a few ideas that would most likely fit.Helpful to look at for people trying to understand different ideas for sure!

They now have 5% conventional loans you can use on multi family homes now.

Rates are coming down pretty hard however probably not quite as much as owner-occ / conventional and a bit muted more than treasury bonds considering the risks. 

Conventional How did you add value to the deal?

I like these amongst ,many other right nowREXR - (Rexford) they are a niche (sub-specialist) in industrial warehouse/distribution/manufacturing in the southern California only urban or Infil area, they are not international like PLD - prologis, their MOAT is that SO-Cal has geographic limitation to new inventory, so they have rent pricing power that industrial in rest of country doesn't, also 26 million people in so-Cal and the 2 busiest Ports in country, their earning/revenue projections next few years are best in class, and they are cheaper on price to book than PLD or others, I own some and will buy a lot more in upcoming Recession, likely in next 6-12 months, when publicly traded equities will likely slide by 20-30% although their assets (physical buildings) are only going up in valueVICI- (casino REIT), used to be part of Cesars palace, then Caesars spun them out in 2018, to do sale leasebacks of their properties to take all that physical capex off the books.

I’ll get a better interest rate on the property as compared to an investment property since it is an owner occupied conventional loan2.

DSCR is the most common way to get around the LLC vesting and DTI requirements, although some people quit claim deed after getting a conventional financing.