All Forum Posts by: Avery Heilbron

@Lien Vuong Thank you for the advice. I actually asked my lender about this and the rule for a non-owner occupant signing with you means that the down payment for a multifamily must be 15%. You can still do 3.5% for a single family or condo

@Ann Bellamy Thanks for the advice! I understand it isn't the worst thing and it would be a good move for now. I have all this energy that only so much reading and learning can burn off.

@Josue Velney Thank for the insight! I have tried to be more open and talk to everyone about it even if it sounds annoying

@Dan Weber Thank you for the suggestions! I will continue going to the meetups and gaining relationships.

Hello BP,

I have been going to go see houses as well as analyzing deals  for a potential househack in the Boston area. I have been looking at the Everett/Chelsea area because of the potential upside for the future as well as it having the lowest barrier to entry for a multifamily in the area. Most 2 units range from 550-625 and 3 units from 600-725.

In my first deal I am not really trying to buy a total gut job . I am looking for something that I can live in and rent out that is the standard for the area. As time goes I would fix up the place etc. (Not trying to be a slumlord). 

The trouble I am having is because I have gone to a few lenders and the highest I have been pre-approved for is 525k for a 2 family and 625k for a 3 family. Most options in that range are usually a total gut job or if it's the type of place I want to/ can get in to the offer point would be well below my competition as well as an FHA offer which is already less enticing. Essentially my lenders have said that I need to make more money (I make 65k/ yr) or I can find a single family. It is also worth noting my credit is only 6 months old. It is however quite solid at this stage for how young it is(700+).

I am feeling stuck because I am wondering if I should wait and save even more, or buy a single family (where I will also have low purchasing power), find hard money, or something else. I only just graduated and get a 6% raise for the first few years so my salary will not be increasing very quickly. 

I am getting slightly discouraged when I see these househacking opportunities pass me by. I am having trouble answering the "How can I afford it?" question

Any and all suggestions are welcome.

Hi @Gretchen Mather welcome to BP! What kind of projects are you working on with your seasoned investor?

@Ian Crist Are you sure no reserve is needed? The lenders I have spoken to all say 3 months reserve is necessary. It may be different from state to state, but this tends to be what I hear.

Thank you for the insights! @Matthew Roder @Stephanie P. @Chris Mason

@Melvin List I am trying to house hack for my first property and am wondering what your thoughts are on the FHA vs the Home Possible program

As a follow up @Willie Mandrell my lender had mentioned this when I recently spoke to him in regards to FHA vs. Masshousing "

Mass housing has no PMI BUT the rates are much higher.. They build the PMI into the interest rate.. It is less money down at 3% as opposed to FHA.. FHA is great for lower credit score buyers and is much more lenient in regards to debt to income ratios.."

@Willie Mandrell The Masshousing loan seems like a great idea if you can find a property within the price limits. The down-payment assistance and no PMI make it seem like a much better idea than FHA. Have you noticed any drawbacks for the Masshousing loan in comparison to the FHA?