I will not be ignored!!!

13 Replies

I'm trying to just get some info. I currently own a 3 family and would like to get into renting more properties. I don't have a large down payment so am beginning to look seriously at house hacking. So, refinancing my current mortgage to a conventional loan, and going FHA on another two or three family. I just want to talk to someone about it, and see if the numbers would work and if its something I could really do. I've contacted 3 mortgage guys, 2 that I have worked with before, and I keep getting blown off. Do they know something I don't know? I get that not really having money isn't a big draw when looking for someone to work with, but I'm really just looking for info right now, tell me what I need to do to get there. Is this something I could figure out myself? I've messed around with some of the calculators on line, but it seems like the amounts can vary pretty widely. I have a lot of questions. I'm serious about doing this, I just want someone to take me seriously...

@Mara Witt , do you have enough for a down payment on this new property? Is it possible to purchase something that needs a bit of work? FHA can be had for as low as 3.5% down - but that comes with PMI for the life of the loan. Conventional can be as low as 3% - but that PMI can be removed at 20% equity upon request, or automatically at 22% equity.

Do you have your eyes on a property already, or are you just starting to look? To refinance, lenders typically hand out 80% LTV if you're living in it, and 75% LTV if you aren't. Do you have enough equity in your existing triplex to refinance without bringing any money to the table?

FYI, you can owner-occupy up to a 4 unit property and still get a residential FHA loan.

I am also looking to house hack with a multi family. FHA is 3.5 down which I am also looking for. The calc on BP are fantastic and the site has very helpful people.

I would start by analyzing multi family daily to get comfortable with the numbers. I use MLS listings but you can begin with zillow, trulia.

Get to know your market, by seeing deals daily. 

Good luck, take action! 

I don't have a property in mind, I think I need to get a better handle on financing first. My first choice would be to buy a low priced $100,000-$175,000 range 2 or 3 family in a fair neighborhood, that needs some minor fixing up. However, if my only option is house hacking, and I'm moving in with my whole family that changes the properties I would be looking at, I would need at least a 3 bedroom for myself and the neighborhood would matter a lot more. Peeking around it looks like I'd need to be in the $230,000-$300,000 range. I don't have much of a down payment right now, I have been pumping $1200-$1600 a month to pay down credit cards to get my credit score up and not saving anything. But my debt to credit ratio is at 31% !now so I can start to save some. I have some retirement money, but was advised not to use it for a down payment. I owe around $219,000 on my current property and have lived here for two and a half years. Don't think I have enough equity to borrow (I did talk to my
Bank about it, but not really sure how that works)

@Krystal Grubbs Yes! I am absolutely interested in any aspect of real estate that could make me money!!! I love taking run down houses and making them beautiful. Love it. Flipping houses seems like kind of a dream carrier. However, I don't feel like I know enough about it to just jump into it. Trying to learn all I can on here, but thinking I would like a mentor or a partner to help walk me through on the first deal... I have bought two houses and have been a landlord for two years so I feel confident that that is something I can be successful at. But yes I am interested!

Go to your local REIA meetings, and network yourself. Mentors are great, but remember, they're people too with busy schedules. Most are willing to help, but like anyone would want some kind of reciprocation. Think about what you can bring to the table for them, and form a mutually beneficial relationship with these people.

Originally posted by @Mara Witt :

I don't have a property in mind, 

Look at it from the banks perspective.  What do you bring to the table?

No property.
No equity.

No deal.

Just a desire.  What is it that you're truly expecting them to do?

Go fill out an application for a refinance if you want.  They'll start paying more attention to you.  I don't think you'll get anything out of your refinance, but they'll pay more attention.

Since you asked everybody's opinion, I will throw mine in the ring.

  • Keep educating yourself.
  • Wholesale to make extra cash if you wish.
  • Keep paying down your credit cards.  Get the balance to zero.
  • Keep paying on your home.  Make a move with your primary home after five years of equity build-up (I wouldn't even consider it before then).
  • If you really MUST get a deal, find a deal and go into it with a partner.  All the caveats here apply.

Whatever you do, don't stop.  Just keep moving forward towards your investment objectives.

And, contacting three lenders is not a lot of action.  Contact 20.  But, contact them with something actionable.

Keep rockin'.

@Account Closed had good points looking at this from a banks point of view, you are risky. The only suggestions I would add:

- Create a plan and find a specific type of property you are looking to invest in to bring to the bank. Have numbers calculated and a specific request for loan amount with your cash flow analysis calculated.

- You mentioned that you met with two banks, but you probably need to find ten more to talk to. Maybe you will strike out at all ten, but if you bring a specific property with a plan, you can find out specifically what you need to make the deal work. After talking to ten banks there should be no question in your mind of what you need to make this happen. You may find one bank that is willing to take a chance based on your enthusiasm or maybe all ten tell you that you need a bigger down payment. You need to convince them that you are worth the risk.

@Account Closed Thanks for the tough love! I guess that is kind of what I'm looking for, at least tell me "NO, you can't do this right now" So, maybe I should shift my focus to wholesaling or flipping right now?  Scary, I don't know nearly as much about it, but I'm thinking if I had a partner that knows the ropes to help walk me through.... so, I'll be on the lookout for that, and keep soaking up all the info on my own as well.  This site is such a great resource, Thanks for all your help!

Don't forget about private finance... The owner may finance it... That's a BIG maybe!!! lol. All in all, stick with your investment fundamentals. Do NOT limit yourself and stay creative.  Also, you become financially free with cash flow and not equity.