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All Forum Posts by: AJ Wong

AJ Wong has started 241 posts and replied 660 times.

Post: Current DSCR rates? Who's got the best program?

AJ Wong
Posted
  • Real Estate Broker
  • Oregon & California Coasts
  • Posts 679
  • Votes 539

HI John what's the property type? And down payment..20 or 25%? Rates ticked down the most in a week for 2024, last week so sounds a hair high..we just priced a DSCR purchase for 5+ units just below that..Check in with @Joseph Chiofalo for a quick quote. He's based in FL but they lend nationally. He's my go to lending contact for 20+ years. Good luck! 

Post: Best Cashout Refi rates?

AJ Wong
Posted
  • Real Estate Broker
  • Oregon & California Coasts
  • Posts 679
  • Votes 539

HI Mario, on a primary you might actually be able to get to 90% depending on credit, income, property type and seasoning..rate might be more tolerable than you're thinking..@Joseph Chiofalo just helped a referral with a high LTV cash out refinance. They lend nationwide, definitely worth a check in. Cheers.

Post: Should i pull equity from my rentals using HELOC

AJ Wong
Posted
  • Real Estate Broker
  • Oregon & California Coasts
  • Posts 679
  • Votes 539

HI Tomer, you can definitely secure a fixed second or HELOC on an investment property. Some investors have total properties owned restrictions, although sounds like you're doing something right! I would check in with @Joseph Chiofalo they lend nationwide and focused on investors and they also have STR specific purchase programs that might be able to reduce the actual HELOC amount required. Good luck!

Post: Short term rentals

AJ Wong
Posted
  • Real Estate Broker
  • Oregon & California Coasts
  • Posts 679
  • Votes 539
Quote from @Alecia S.:

What is best way to advertise short term rentals? I have an agent marketing the property but it does not seem to be listed on many sites. I was wondering if I could list it myself through rent redi as a short term rental or should join something like Air b and B or VRBO? Any suggestions? I have 10 long term rentals, I am not as familiar with short term rental marketing. 

Hello..marketing for sale or for rent? If it's for rent, absolutely the property should be on AirBnb & VRBO, an experienced short term rental property manager could go a long way. 

Post: Help me analyze this property. Should I jump on this opportunity?

AJ Wong
Posted
  • Real Estate Broker
  • Oregon & California Coasts
  • Posts 679
  • Votes 539

Great post and question. High level $200k for a $36k gross return is a low yield..however I think there are a few variables..with 35% down you should be able to get stronger lending terms, if the seller is workable you could entertain a concession towards a rate buy down for lower obligations, possibility to look at shorter duration (ARM) loans if you only intend to own 3-5 years which could also offer a lower rate. Lastly, COC could be stronger with lower down payment..check in with @Joseph Chiofalo for some investor focused mortgage support. 

Post: Apartment Complex Investment- Advice Needed

AJ Wong
Posted
  • Real Estate Broker
  • Oregon & California Coasts
  • Posts 679
  • Votes 539
Quote from @Tilottama Bandopadhay:
Quote from @AJ Wong:

Example in Oregon is a 5Plex asking $550K+/- or $100k/door. $125-135k down. Or 13 Plex asking $975k. Six months reserves should be more than sufficient to qualify and conservative to account for any (eventual) unforeseen circumstances. 

We try to find prospects that also have separate utilities such as electrical and less commonly separate water/gas.


 AJ that was very helpful. For a 13 plex with a 20% down of 200k and 6 months reserve of 42k. Assuming a $250k total. What kind of returns can be expected in Oregon? Is there a preference for lenders that the buyer has a W2 income ? Is the underwriting process similar to the single family mortgage process?


You're welcome. Technically 5+ units is commercial so many residential lenders won't offer financing in house.. It can be technical but underwriting is generally based on strength of borrower credit, assets/reserves, income of the property and aforementioned LTV. High W-2 wage earners are generally more lender friendly as it's the 'most' consistent and/or easily documented. It sounds like you won't have any trouble qualifying..

In Oregon there are some tenant laws that can restrict active CAP rates, but those with current market rents (or that can attain them near term) can approach double digit return rates. For example the 13 plex should generate $11-12k in gross market rents but has 50%+ occupancy due to a recent remodel. The 5 plex is slightly overvalued at $8-900/door in gross rents market is $1-1100. Financing and loan terms can be a critical component to supporting cash flow or incentive on multi unit or commercial properties.. A 5 plex vs 13 plex can have considerable financing considerations.. a strategic mortgage partner will be critical to answering some upfront questions to provide a property search framework.

Post: Apartment Complex Investment- Advice Needed

AJ Wong
Posted
  • Real Estate Broker
  • Oregon & California Coasts
  • Posts 679
  • Votes 539

Example in Oregon is a 5Plex asking $550K+/- or $100k/door. $125-135k down. Or 13 Plex asking $975k. Six months reserves should be more than sufficient to qualify and conservative to account for any (eventual) unforeseen circumstances. 

We try to find prospects that also have separate utilities such as electrical and less commonly separate water/gas.

Post: Can foreign and international investors get mortgages for purchasing property in US?

AJ Wong
Posted
  • Real Estate Broker
  • Oregon & California Coasts
  • Posts 679
  • Votes 539
Quote from @Colin McMahon:

Great post AJ, 

To add to your insight:

1. DSCR loans have become extremely popular amongst foreign national investors because they do not require income verification to qualify or U.S. credit history (many use local credit history from their home country to verify creditworthiness), allowing for a more efficient underwriting process.

2. International investors should expect an interest that's 1-1.5% higher than U.S. citizen primary mortgages because of the added risk to the lender

3. International investors should expect to provide a downpayment of 25-30% for investment properties. Local banks in their home country (for eg. Canadian investors) may be able to provide a slightly lower downpayment if they can prove that they have enough INCOME (not assets) to cover the monthly mortgage payments in addition to any existing debt. 

4. Max LTV to expect for purchase is 75% of the purchase price, and for refinance, 65%.

It sounds like we serve similar clientele. I'd be happy to connect to see how we can aid each other's efforts. Please feel free to reach out and I'll send a DM to connect. 


 Yes send me a DM. Cheers. 

Post: Why so much inventory for Rent in South Florida. is it bad to invest???

AJ Wong
Posted
  • Real Estate Broker
  • Oregon & California Coasts
  • Posts 679
  • Votes 539

I grew up in Florida and we still do a majority of our lending there. The insurance is prohibitive but we're personally browsing property on the North Coast currently. In general I think it's a decent time to get stronger value or a better investment. Quality and location are (as always)  key. We're passive aggressive investors at the moment. @Joseph Chiofalo is a good local lending resource and dually licensed RE broker, good for some high level market insight. Good luck! 

Post: Buying an existing rental in California

AJ Wong
Posted
  • Real Estate Broker
  • Oregon & California Coasts
  • Posts 679
  • Votes 539

Strong loan approval or loan commitment. Have lender make contact with listing broker after submission. Limit concessions. Reduce inspection period. Escalation clause.. @Joseph Chiofalo is a good back up lender and can reinforce strength of borrower to sellers broker. Good luck!