All Forum Posts by: Andrew Garcia

Hi @Tkai S., expanding your search area may be your best option.

If you are able to commute or work remotely, finding duplexes in surrounding areas could be a good bet.

If that does not work, you can still house hack in a single-family.

The only difference is that you are renting out the spare rooms in your house rather than the spare units.

Hope this helps! Let me know if I can be of any assistance.

Hi @Aaron Kerwin, I can refer you to a great lender in FL.

Conventional would likely be your best option as it has better rates and terms.

Let's get connected so we can exchange information.

Hi @Tashaun Williams, this would be a seller financing deal.

A subject-to would be if you are taking over the mortgage payments.

Hope this helps!

Hi @Trent Reeve, make sure that you have a strategy to pay back the HELOC.

If you use all of that as down payment funds, you will have two more properties but they would not likely cashflow enough to be able to pay back the HELOC.

If you end up keeping it open for 3+ years, you could be paying double-digit interest rates and still not have paid down any principal.

Keep an exit strategy in mind. What will you do if rates continue to hike? Can you afford the higher payments? Can you pay down the principal?

HELOCs are generally better for short-term financing such as using those to fund a rehab or a flip where you will get paid enough at the end to pay the monthly payments as well as pay down the principal.

Hope this helps! Let me know if I can be of any assistance.

Hi @Caleb Busch, welcome to the community and REI!

There are many reasons that would prevent a lender from giving you a refinance with the BRRRR strategy.

1. The property is not in safe and livable condition. If you run out of funds while there is still no floor in the kitchen, you are not getting that loan.

2. Your credit score is too low. If you have a 450 credit score, no lender will give you financing.

3. You do not have enough personal income to support it. This only applies if you are doing a conventional refinance. If your debt-to-income ratio is too high, you would not qualify for conventional.

4. The fair market rent comes in too low. This only applies for a DSCR refinance. If the DSCR ratio is too low, the lender will not provide you with financing.

5. There are title issues. If the property's ownership is in dispute, the lender will not want to give you hundreds of thousands of dollars until they know for certain.

6. You do not have enough equity in the property. If the appraisal comes back and shows that it is worth $500,000 and you owe $450,000, the bank will only lend 70-75% of that value. You would have to make up the $75-100k in difference.

Those are just a few. There are others but those should cover 80% of cases.

Hope this helps! Let me know if I can be of any assistance.

Hi @Nikunj Sidhpura, you could get a fix and flip loan for 15-20% down of the purchase price + repairs.

Assuming a 100k purchase price and 30k rehab, you are a little light. You also need to factor in closing and carrying costs.

You have three options to raise the equity.

1. Do a cash-out refinance. This is a 30-year fixed-rate traditional mortgage where you can access some of your home's equity.

2. Do a HELOC. This is an adjustable-rate line of credit secured by your home. It has the lowest interest rate initially but if you do not pay it back within a relatively short period of time, you could be paying double-digit interest rates.

3. Do a HELOAN. This is a second-lien that goes on your house while keeping your current interest rate. This has a higher interest rate than a cash-out.

With any of these options, you will enough capital out of your home while still cashflowing.

Hope this helps! Let me know if I can be of any assistance.

Hi @Michael Fay, there are a few ways to create maximum cash flow.

1. Buy a distressed property and fix it up so you have less money in the deal and can re-invest that capital in other cashflowing assets.

2. Buy properties in cheaper areas where the rent/price ratio is higher.

3. Buy an STR in an area where it makes sense.

4. Buy multifamily properties. A 4-unit property is not 4 times more expensive than an SFH.

Hope this helps! Let me know if I can be of any assistance.

Hi @Michael Dalton brandt, welcome to the community!

If you go to the "Network" tab at the top of the screen, you can type in "Statesville, NC".

From there, you can connect with people in your local market.

Just remember, don't spam anyone as the algorithm could block you.

Hope this helps! Let me know if I can be of any assistance.

Hi @Claire Findley, the student debt will not significantly hurt you unless your debt-to-income ratio is really tight.

If the student loans have a payment reporting, the lender will use that. Otherwise, they will use $60-75 per month as the monthly payment.

As you can see, it will not significantly affect your qualification.

Additionally, you have a great deal with your employer so I would milk that for all it's worth.

Now you just have to decide between putting a larger down payment or saving more money and doing the minimal down payment.

Hope this helps! Let me know if I can be of any assistance.

Hi @Kahleb Kelsey, first, thank you for your service.

Now, as for the triplex, it would be a major risk if you were to take it on. If one of your 4 units goes unoccupied for a month or two, do you have enough reserves to carry it?

With high risk comes high reward but you do not want to end up in a position where you lose one or both of your properties.

The decision ultimately comes down to you.

Additionally, you can try looking in areas that are still nice but a step below this one. The numbers should pencil out a little better there.

Who knows? Maybe in a couple of years, you will be in a better position and will get a similar property.

It really all comes down to your risk tolerance and reserves.

Hope this helps! Let me know if I can be of any assistance.