Introduction Chris DeSimone - NYC House Hacking FHA

[Christopher DeSimone]

Hello BP!

By way of introduction, my name is Christopher DeSimone and I am currently a 23-year-old CPA working at a big four firm in NYC. I recently finished Brandon Turner's book Rental Property Investing and I am eager to get started on building my real estate portfolio.

I have set a goal of obtaining a multifamily property to house hack in Queens/Brooklyn by July of 2022. I will finance this purchase through an FHA loan where I will put down 3.5% and then in one to two years post-investment refinance into a conventional loan.

I hope to work and network with all of you!

Best Regards,

Christopher DeSimone

[Basit Siddiqi]

Are you planning to refinance into a 5% down conventional or a 20% down conventional?

Let's say you purchase a multi-family in Brooklyn or Queens for $800,000 at 3.5%.
That is $28,000 down.

Assuming you didn't purchase the property for below market value and there is no appreciation, it will take you $132,000 more in funds($800,000 x 20% - $28,000)

I personally would look to see if you can do a 5% down conventional from the start. This way, you can get rid of PMI after some time.

Refinance over a short-period of time may not be worthwhile(especially if no appreciation) as the closing costs(especially on a huge purchase price) will be high.

Best of luck!