All Forum Posts by: Anthony Sigala

Hi Anthony, what's your biggest priority - cashflow or long-term appreciation? Also, how'd you narrow down your search to these two markets? 

Quote from @Anthony Sigala:

We are all aware of the 1% rule--the gross rent produced by a property must equal 1% of the of the property's acquisition cost. The question being, does this still hold true for Arizona? If not, what metric do you guys use?

Of course it isn't fully "dead" but it is real hard to find and only possible off market.  Properties in Tucson are closer to that 1% rule mark or even other smaller cities but then there is more risk.  Analyzing an investment with the Cash on Cash return makes more sense to me.

Quote from @Anthony Sigala:

We are all aware of the 1% rule--the gross rent produced by a property must equal 1% of the of the property's acquisition cost. The question being, does this still hold true for Arizona? If not, what metric do you guys use?

The 1% rule is tough to achieve, but we get it in AZ and TX by buying below market. The way you buy below market is To Not to use the MLS. There are so many other ways to find good deals. But, you need some money and you have to work at it.

Hello @Anthony Sigala! I have some news for you, FHA does NOT require a 1 year work history!

Sadly, FHA has a 2 year work history requirement, as does Conventional and USDA financing.  FHA and Conventional loans will allow schooling to count as work history. USDA does not.

If you have a job gap (6+ months of unemployment) on an FHA loan, then you have to go back 2 years prior to the job gap AND be back to work for 6 months before you are eligible.

How to avoid this?  Do a conventional loan! If you are looking at FHA because of credit score, then I would work on credit scores to qualify for conventional financing or see if you can get a very strong coborrower with high scores.  

If credit scores are fine, and you are just new to the work sector, then I would suggest doing a conventional loan with a strong income "non-occupying coborrower".  You do not actually need any income if they have high enough income to afford their bills plus your new house. As long as you are on the loan, on title, and live in the home for 12 months minimum, then your non occupying coborrower can qualify for 5% down at owner occupied rates. Once your income is stabilized, you can do a refinance to remove your coborrower back off of the conventional loan. 

Let me know if you have any other questions!

Let me know if you have any other questions