All Forum Posts by: AJ Wong

Hi Mia and congratulations. Generally only one FHA loan at a time but you usually can utilize a new FHA loan for a new primary after twelve months of occupancy in the current residence. There are some other extenuating circumstances that allow one to use more than one FHA loan at a time:

- Relocating to an area beyond reasonable commuting distance to your current residence or affordable housing is not available 

- Leaving a jointly owned property to buy a home, and co-owner (such as divorce) plans to remain in the home.

-Cosigned an FHA loan for someone else and now want to purchase your own home.

- Buying a larger home for growing family with evidence of increase in dependents and 25% equity in current home

Check in with @Joseph Chiofalo, he's a great friend and top lender nationwide for 20+ years. Good luck! 

Hi Joshua, DSCR refinances are possible. What is the loan to value (LTV) or mortgage balance compared to the assumed value?

Normally cash our DSCR on a two unit property will be limited to 75-80% 'cash out.' If you're not a W-2 employee or have additional income you can try an alternative income verification such as bank statement deposit averages or asset depletion (if you have significant reserves or assets.)

Lastly you could keep the primary mortgage intact and try a fixed second or HELOC but generally those are also full income verification. Check in with @Joseph Chiofalo he can walk you through investor loan options. Good luck! 

Average one bedroom rent in LA: $2691. Average deposit: $5200+. Buying a QUALITY home with less than $4k out of pocket? Ruthless.

Here's a general investing theme: "If you can't do it with what ya got, ya won't do it with more."

We just put an offer in on a riverfront one bedroom cottage on a half acre property in Oregon that we expect to be accepted, here's how I plan on purchasing the property with less than the cost of an apartment rental deposit in SoCal:

Purchase price is $330k as a FHA Primary Purchase with 3.5% down ($11,550) and a 2.5% ($8250) seller concession towards closing costs. The seller is offering the buyer's broker a commission of 2.5% ($8250) and I am representing myself as a licensed real estate broker.

Total closing costs with inspections and appraisal costs are +/- $8750. 

Total cash to close (down payment + closing costs) is approximately: $20,300. 

Seller is paying the buyer's broker at closing (ME) $8250 and 'contributing' another $8250 towards buyers closings costs. 

Difference of $3800 or about 1% of the purchase price plus an inspection fee :) 

The difference in 'financing' the down payment and RE commission (5% of the purchase price) is roughly $124/month or ELEVEN YEARS of payments ($16,500/12 = 133 months.) 

When people ask if they should get their Real Estate license? My answer is always..yes. When I obtained my RE license over a decade ago I never intended to service others, but to accelerate my own RE investment interests. My business and portfolio have grown proportionally with experience. 

Have you ever used your real estate or mortgage license for your personal transactions?

This is cool. Connect with @Joseph Chiofalo they are a NY based nationwide (+ Puerto Rico) lender. Apparently one of the few mortgage companies that lend in PR and NY. Good luck. 

HI Matt, if you think it's going to sell quickly, I would probably leave it vacant. Very likely a large buyer pool will include those that want to utilize the property as a primary and capture the rental income to offset of hack. Having a tenant will limit the usage for many prospects and likely make it difficult to schedule showings. 

I would even consider taking listing photos with your furniture and set up as a home if you weren't already planning on doing so. 

If you must rent during prior or during listing, consider a shorter lease, or healthy terms for an incentive to the new buyer. Good luck!

Yes North OR Coast. It's an area I don't actively recommend STR as it does have usage limitations (duration restrictions between guests) but it's primarily a second home getaway and will transition to full time vacation rental down the line. At that point $60k gross with the restriction. The same home with unlimited usages would generate $85-95k gross.

 They did have a larger down payment percentage of 35%. Non-Jumbo. Not a repeat mortgage client but referred to a repeat lending partner. They are hyper focused on any conforming loans $500k-$10M and apparently most of the coast is currently a 'preferred' high limit area for some of their investors. No recent appraisal but fair valuation in very in demand community.

Hello. I've owned, operated, managed and sold all types of BnB's throughout CA & OR the past decade. My primary points with investors or operators are:

- Design and Decor..updated aesthetic appeal can go a long way. Professional photos can also help. 

- Management and resources..operate it like a hospitality business with very clear communication with guests and reliable crews both for cleaning and emergencies. 

- Consider guest amenities, house rules..hot tub..pet friendly etc

- TLC. As with any investment you get out what you put in. STR's probably take more effort than investors expect, but they are a proven and generally less available (due to regulation) asset class.

- Do you data research. Using real world comps & calendars from your personal experience, local PM's, online estimators. Prepare for the worst, expect the best. 

- Treat it like a home that you are inviting guests to. It's a fine balance between economy and what you would do for oneself, but creating a space that feels like home should be of primary focus.

If you're looking for some insight into re-leveraging any investment properties for capital improvements, furnishings, etc, some lenders can utilize AirDnA projections to qualify. @Joseph Chiofalo has some great nationwide STR investment loan products and fixed rate second/Helocs for investors loans clients tapped into recently.

Good luck! 

If there's one thing STR investors welcome in the PNW... it's dogs with three of the top 10 locations for pet friendly AirBnB's located in Oregon & Washington.

According to AirDNA the top ten vacation rental destinations with the greatest proportion of pet friendly AirBnB listings are:

1. Gray's Harbor Washington - 67.8%!

2. Joshua Tree California - 66%

3. Red River Gorge, KY - 55.4%

4. Ocala, FL - 53%

5. St. George Island, FL - 52.9%

6. Amarillo, TX - 52.6%

7. South Dakota Area, SD - 51.1%

8. Northern Cascades, WA - 50.8%

9. Las Cruces, NM - 49.1%

10. Rockaway Beach, OR - 49%

Most of my Oregon Coast and Joshua Tree area investors are aware that pet permissions can add a significant (5-10%) boost in revenue. Obviously comes with some drawbacks, but as somebody with two dogs pet allowances are essential when we travel with the entire family. 

Rockaway Beach has made consistent appearances on many top beach STR investment lists due to a balanced price to ROI ratio (and majestic destination) with a historically a low barrier to an STR permit. Probably for the better the city recently instituted a CAP on new licenses. Actively licensed properties can transfer to the new owners but until about 100 sales or non renewals of currently licensed properties occurs, no non commercially zoned or non active rentals can obtain a new permit. However, generally there are several active listings of actively licensed or operated STR's in Rockaway Beach and the immediate surrounding area.

Do you allow pets at your vacation rentals? If so what are some tips and tricks to keep things clean? I think a lot has to do with the property itself, if there's space for dogs and their business, and also the area and type of guests likely to visit. 

Hi Bee. First of all, don't panic..if you've been timely with payments you can always go to the seller and try to reorganize an extension. 

If you've had your plans approved for shovel ready development..great job! What are you planning to build? 

The next steps will involve accurate construction cost estimates by a licensed contractor (or two) and connecting with a lender (possibly current local bank) for construction financing. Some will allow you to roll in the existing private mortgage balance. 

Check in with @Joseph Chiofalo for some construction financing options. He's in your area and also a licensed FL RE Broker so can help you organize the transaction. Good luck!