All Forum Posts by: Andrew Garcia

Hi @Cameron Brulotte, connecting with wholesalers might be a good option.

Alternatively, you can check the owners by going to the county website and searching by property type.

Then, skip trace the owners of every duplex-quadplex in the area that you are looking in and make an offer.

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

Hi @Alex Case, which state are you looking to buy in, or do you not know yet?

The community cannot help you much unless you state an area you are looking in or if you are taking applications on which markets to place your capital.

We all would be happy to help if given some more information.

Hi @Brian Ellis, if you can somehow subdivide the residential and retail, you could use 3.5% down FHA or 5% down conventional financing for those.

However, for the retail, you would be looking at 20-30% down.

If you cannot subdivide it, you would be looking at 20-30% down on the entire property.

You might be able to find a local bank or credit union with which you can build a relationship with them to get better terms.

Hope this helps!

Hi @Janine LaBriola, no one can give you a proper answer without getting more information.

They would need to know credit score, down payment, property type, loan type, loan amount, etc.

I am sure the BP community can help you out once you provide some more info.

Hope this helps!

Hi @Devante Henry, Florida is a big place so no one will be able to properly answer your question.

Miami is a lot different than a backwater small town.

What market in Florida are you looking in?

Hi @Ashley Godfrey, welcome to REI!

You have a few options here. Below are my thoughts.

I agree with Scott Trench's post HERE about why a HELOC should not be used as a down payment.

A cash-out refinance would jump your rate up 3-4% so that is likely not the best option.

The home equity loan is an attractive product for using funds towards a down payment. It is essentially the same as the first mortgage but with a higher interest rate and a lower balance.

If you plan to keep your current residence and your low interest rate, I would recommend that option.

Additionally, since you do not have much personal savings, a lower-risk strategy might be best for you.

Possibly house hacking to bolster your personal financial position while continuing to grow your real estate knowledge and wealth.

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

Hi @Eric Piccione, if you are taking out a HELOC as a primary residence, you would have to live in that property for a designated period of time afterward.

Your current lender does not want to be held liable if the loan gets called due because of mortgage fraud.

Since you are considering moving, selling might be your best option. That way, you have more capital to deploy.

However, that interest rate is very tempting and is hard to give up.

I agree with Scott Trench's post HERE about why a HELOC should not be used as a down payment.

A cash-out refinance would jump your rate up 3-4% so that is likely not the best option.

There is another product that might be the best of both worlds. It is a fixed-rate fully amortizing second lien known as a home equity loan.

It is essentially the same as the first mortgage but with a higher interest rate and a lower balance.

If you plan to keep your current residence and your low interest rate, I would recommend that option.

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

Hi @Rick Frank, a local real estate agent would likely be your best bet on this as they have access to MLS data.

I would reach out to the one you are currently working with.

If you are unrepresented, use the "Find an Agent" tool at the top of the screen to find someone that can help you out.

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

Hi @Rafael P Martinez, I agree with Conner. 

House hacking is the best way to get started as it requires only 3.5% down and can save you thousands of dollars a month in mortgage payments.

With 60k, you should be able to find something to house hack and still have tens of thousands of dollars left over to put towards your next deal.

With your drastically reduced mortgage payments, you should be able to save $1,000+ per month that you can put towards REI.

The median home price in Atlanta is around $400k so for a newbie, you should be able to get 80-85% LTC financing on a BRRRR.

Therefore, you will need $32k for the down payment and $8k for closing costs to be very conservative.

Then, depending on how much you spent acquiring the house hack, you should be able to buy your first rehab within a few months.

A few months later you can refinance into long-term financing, take all your money out, and repeat the process.

That would be my recommendation.

Alternatively, if the house hack idea does not suit you, you can jump straight into the BRRRR strategy.

Make sure you have a solid contractor, agent, and property manager when investing out of state.

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

Hi @Edo Y., there are a few products that might fit your scenario.

1. Net rent. This is for clients that do not qualify because they have other rental properties that hurt them on their Schedule E. It takes a more investor-friendly approach to calculate income. It generally has better rates than DSCR but higher than conventional.

2. DSCR. This is where you are qualified based on the income generated by the property. Not your personal income.

As for a small, local bank, they might have different products that are more well-suited to you. Unfortunately, I do not have any referrals in Weehawken, NJ.

DSCR is only about 1% higher in rate than conventional (less so with perfect credit) so even with that option, you would not be dramatically more expensive than it currently is.

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