All Forum Posts by: Ben Einspahr

@Bryan Zavala Option 1 but scratch triplex and fourplex. Financing is complicated. Dont get too caught up on the numbers while living there. Numbers after moving out are what count!

@Eric Sato you go it :)

@Eric Sato Love the idea and thinking outside the box. You best option would be 2nd home loan. Must stay at home minimum 14 days out of the year. Would be able to put as low as 10% down. But to be frank, when it comes to the 14 days the right hand does not speak to the left... if that makes sense.
Regarding MTR vs. STR. MTR would be your best bet. STR rules and regs can be a PIA to navigate. Here is a link to the rules and regs to dive into it.

@John Cannon Regarding local STR rules and regulations, you best bet is to dig into each cities rules and regulations... I know it can be a lot. Or find an agent that is familiar with them all :)
Would disagree about Jefferson County being difficult to work with. There are multiple different cities in JeffCo and each has different rules and regs. I have 2 STR in Jeff Co.

Also, one thing that was not brought up was lending. Any investment property you will be putting down 20%+ for downpayment. If you will be living there for 14+ days out of the year you can use a second home loan that will allow you to put as little as 10% down.

Hope this helps

@Jessica Tse Welcome to BP! Like many others have mentioned, House Hacking will be the easiest form of REI to get your foot in the door (low downpayment + hands on landlord experience + reduced living expense). That is how I started back in 2017.

Here is my 2 cents:

-identify a strategy

-connect with an investor friendly agent. You will be in excellent hands with @Jeff White.

-connect with a lender to see what your buying power looks like. Typically if you connect with a good agent, they will bring you the rest of the team you need.

-Join some local meetups. 

Best of luck!

@Frederick Wilson, hard money loans will not let you occupy the property if it is your primary residence. I will second what everyone else has been saying. The beauty of HH'ing is low down payment. 3.5% down on a future investment property is already an amazing win. No need to over complicate it.

203k loan sounds great in theory but a PIA to use. 60+ day closing. You have to use approved contractors. Lots of government paperwork. Contractors hate paperwork!

@Curtis Roth, wow! $14k in savings before graduating college? Very impressive.

Real Estate License. I personally think this is a waste of time and money (others may disagree) Unless you plan on doing your own deals in NJ. Focus all that time and energy on networking and self educating through the BP forums. 

Start by reading this book!  Set for Life written by BP CEO, Scott Trench.

https://store.biggerpockets.co...

A book I wish I would have read at your age. 

@Jameson Waltz not quite clear if you are looking to buy a new primary to HH or new investment property. To answer you question about the duplex. If you are wanting to buy it as a primary, you will need to use an FHA loan. Convention loan is 15% down minimum even if it is your primary. Regarding renting out the duplex. Assuming the location you invest in does not allow nonowner occupied rentals less than 30 days (STR) you can still rent out as furnished MTR as @Ben Rhodin mentioned. 
At a glance, sounds like you are more interested is cash flowing investment property so 100% of your mortgage is covered, plus some. If that is the case, I would consider Pueblo. Not as robust market as Denver and COS but your 90-100k can still do some damage.  I can follow up with a few recent case studies we have from recent investments
Regarding the DSCR loan. I would consider that as a last resort loan.

 @Alnazir Blackman 

You must be able to prove that it passes the FHA self-sufficiency test. This means that 75% of gross rents must cover 100% of the mortgage (principal, interest, taxes, and insurance).

Here’s a simple example:

Mortgage = $4,000/month

Unit 1 = $1,000/month

Unit 2 = $1,000/month

Unit 3 = $1,000/month

Unit 4 = $1,000/month

Total Rents = $4,000/month

$4,000 x 75% = $3,000

This example fails the test by $1,000/month. To pass, you must put down a higher down payment amount until your monthly mortgage is less than $3,000/month. Lots of more detailed info with a quick google search.

@Maylin Cuello does not need to be duplex. Those come packaged with a price premium. Look for SFH with ADU, Mother-in-law suite, walk out basement with kitchenette, etc. Much more affordable. With some quick zillow filters you will be able to locate some.