All Forum Posts by: Allen McGlashing

@Korbin Ensley

House hacking is great that’s how I started!! Househacking makes it affordable to buy in a very expensive market. I would buy a house at the maximum amount your approved for and you can put down as little at 3.5%. Make sure your do the numbers for when you move out and as long as it cash flows “PURELY” you will be great. You’ll have a great home in a great area that cash flows. Only thing I regret is to buy in the best area that made sense.

Goodluck don’t hesitate to reach out if you have questions we’ve been through it 

@Joel Patterson 

It really doesn't make sense to use hard money in that situation. They typically require almost the same down payment 10%-20%. When you refi into a conventional loan you will still need 20% down. The whole point of BRRRR is when you refi you pull your capital back out of the deal after you force appreciation. I understand what your saying using a hard money loan would let you keep more capital in your pocket at the acquisition, but once you refi into a 30 year loan you will still have to put 20% down and if you don't have that in equity then it's coming out of pocket.

Lender called "Lower" is great I got 95% LTV for a HELOC.

House hacking is how I started; with a 3family in Lowell and it cashflowed $500 at the date of purchase 2016. I refinanced last September to increase my cashflow to $1,000 and took out a good chunk of equity. 3 families increase in value quickly especially in a location that has few.

@Marcus Delitry

Welcome to BP, you came to the right place. Plenty of answer on this forum. Since you really can’t get into a deal in CA with $30k look into other markets. There are tons of markets where $30k will fund a project. So do your research on which area you would like to invest in and reach out to an agent in that area to tell them what your looking for and what funds you have to work with, that is the 1st step in your journey. I can’t stress this enough STAY ON THE FORUM there is so much info to learn just from these forums what ever obstacles you face someone has been through it.

good luck in your journey!! 

@Samuel Girouard there’s no reason the tenant needs to know your buying the property. Make someone else out to be the bad guy. Why not you have to live there with the tenant. 

@Mike Simon

Hard money lender that offer 90% if you have experience. If your new I’m sure it more like 20%, but still will find 100% of the rehab at least from ALL the lenders I had reached out to. I love the idea of rehabbing and then refinancing into a long term loan, All though it might not be 30 years because of the commercial side.

@Stephanie Wells

There are programs for everything you are trying to do. Yes conventional loan requires in Most cases 25% down for an investment property. I have seen some asset based lenders or hard money lenders give 15%-20% down and it gets lower with more experience you just have to search around. Although the rates are little higher and you’ll have to pay usually 1-3 points they close extremely quicker than a traditional bank so that helps when making offers on properties.

@Stephanie Wells

Seems like you have a lot going on here. The good thing about HELOCs are that's it works like a credit card so you can draw and pay down whenever you want. Some lenders will put a early payoff penalty in so I would make sure you get one without. Once you take out the HELOC, that goes against your equity on the property so a Cash out Refinance would be a little more difficult because you would have less equity. I have heard of lenders rolling the HELOC into a 30year fixed rate mortgage, but haven't done enough research on that. I am currently doing the same thing by taking the HELOC funds and using it for a down payment on an investment property. The plan for me is to cash out refinance the Investment property after fixing the property up and putting forced equity into it, then pay the HELOC off or more likely put the HELOC into another deal. I did a 5 year interest only with a repayment plan of 10 years. So I get 5 years to  reuse the funds with only paying interest (smaller payment).

Best of luck to you 

@Matt Allen

Yes, budget the rehab properly, get a specialist in there to give you a quote. I agree this could be a good deal because what do you think most people did when they found out about the termites they followed their fear and probably ran just like you wanted to.