All Forum Posts by: Brandon Plombon

My husband and I are a new investor team from Houston, TX, looking to connect and learn from all of you experienced pros. We are also looking to buy our first house hack property this year in our area.

Thank you,

Janette

Hi Janette! Welcome to the BP Forums!! We are glad to have you here and hope you enjoy your stay.

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Houston, Texas

@Priya Shekhar I'd recommend talking to your lender.

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congrat @Stephen W Sparks did you have any unexpected challenges?

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Sounds like a great deal - Congrats on your success @Tyler Fortner! Did you run into any unexpected items?

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Originally posted by @Seth Holmen:

Originally posted by @Brandon Plombon:

Most real estate loans will take 30-45 days to close as the banks need to order title work and an appraisal to determine that you actually own or will own the property and to determine that the value of the property is there which is being used as their collateral. If you are looking to put this on a residential conventional loan there will be more restrictions than on the commercial side of the bank, the downfall on the commercial side would be higher rates and retaining 20% equity. Sometimes on the commercial side you can find that they won't require seasoning, for example the bank I work at has no seasoning requirement.

Yes you potentially could. I would check with your financial institutions to confirm their seasoning requirements. Often times it works best to have one bank that has your back for purchases and then have a go to permanent refinance bank. Hope that helps.

Thanks Brandon. So under this scenario could I use a Heloc on my primary residence to purchase the rental property with cash and then refinance into a conventional loan? There wouldn't be seasoning?

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Originally posted by @Richard Appleby:

That's brilliant. Thank you for the clarification! @Brandon Plombon

You're welcome! Let me know if you want to discuss further. I'd be happy to have that talk with you.

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Originally posted by @Eddie Lozada:

Originally posted by @Brandon Plombon:

Once you find a property find a local bank near the property and see if they will do it vs finding one near you and asking them to lend across the county. Incorporating at this point doesn't matter if can be done later on and shouldn't affect anything as far as lending goes.

Fantastic I will get right one it. Last question. If I find a property in your neck of the woods, would this be something you could possibly do?

For sure - I would take a look at any property in Minnesota, North Dakota, South Dakota, or Wisconsin.

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Originally posted by @Eddie Lozada:

Originally posted by @Brandon Plombon:

@Eddie Lozada What are your goals? What are you trying to achieve? Are you trying to move primary houses or purchase a new rental property? A DSCR loan would work but I'm going to go out on a limb here and say 20% down on LA real estate is probably going to be an issue if DTI is already an issue with FHA.

Hey Brandon and thank you for reaching out. I want to purchase rental property. I do not plan to purchase in Los Angeles, though. I would like to purchase for 200k or lower, perhaps in other states.

Got it! DSCR or commercial would be the route to go. The rates will typically be higher than the residential mortgages and will require a minimum of 20% down but that should solve your DTI issues, assuming you can find a local bank/credit union.

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All Forum Posts by: Brandon Plombon

Brandon Plombon has started 7 posts and replied 242 times.

Post: New Investor, Lets Connect!

Post: Evaluating financials for commercial property

Post: Small Multi-family Unit. First time invester.

Post: My very first rental property in Cedar Rapids, IA

Post: Cash purchase to Long-Term Debt. - Illinois

Post: Mixed Use 1st Investment Property - Glencoe, MN - seller finance

Post: Debt-to-income is my barrier

Post: Debt-to-income is my barrier

Post: Debt-to-income is my barrier

Post: Debt-to-income is my barrier