All Forum Posts by: Brian Bohrer

Check out this beautiful investment opportunity in the heart of Colorado Springs!  Just voted the #3 best place to live in the US (https://realestate.usnews.com/places/colorado/colorado-sprin...), this home is situated right across the foot bridge from Monument Valley Park and the Colorado College Campus, and is just minutes from downtown and charming Old Colorado City!  Both units have been freshly remodeled from floor to ceiling with all new mechanicals and appliances.  Both units have 2 bedrooms and 1 bathroom with the front unit slightly larger at 835 sqft and the rear unit at just under 600 sqft.  Both units currently have long term tenants with a combined monthly income of $3,600.  Owner has an appraisal in hand (February 2024) stating the current value at $630K, asking $525K as of this post.   Why buy a fixer upper when you can step into equity on day one!?  Please respond to this post if interested or reach out to Chris Wojciechowski at (719)212-4911 from www.HomesIn719.com.Thanks for looking! :)

 Hey Michael,

I did some research on this subject and found that you should be able to assume another FHA loan even though you already have one in place. You would want to be sure you are at least one year removed from the origination of that first FHA loan as that could be a hiccup as well. The general thought is that the loan was originated with all FHA stipulations met at that time of creation. Therefore, by you assuming this loan you are not creating a new loan. You would only have to prove your ability to pay the existing loan and would not be qualifying for a new loan with all of those FHA requirements.

I would recommend speaking with a lender in your area, or better yet, reach out to the servicer of the FHA loan you are intending to assume and verify your ability. In my case, I assumed a VA loan as a non-veteran. I asked the servicer if I would be able to assume another in the future and I was told this would not be an issue as long as I qualified financially!

Good luck in your quest and I wish you the best!

Take Care,

Congratulations on your first successful investment!  This property will lay the groundwork for all of your future investments, just think about how much income this home will generate over the next 20-30 years!  Well done :)

Hello @Anthony Hidalgo,

I will say that you are definitely not alone in your situation. There are many buyers out there who purchased in 2020 to mid-2022 and are in the same boat! Either their home may not be worth as much as they expected when sold or insurance and taxes have increased to the point that the rent no longer covers the PITI. I run a property management business here in Colorado Springs and have seen this situation many times over.

If your goal is to build wealth, then I would not suggest selling the home.  As Greg mentioned above, the appreciation and principal paydown is most likely more than the "loss" of $600 per month that you are paying in.  As long as you can afford to cover this difference, then you are still in a good position to build wealth in the future once rents catch-up.  

If you are interested in hearing about how I can help you lose less per month on your rental property, I would love to chat!  I specialize in finding creative ways to make the rental work for you now while we wait for the home to build equity over the next 2-5 years so it can be sold for a profit in the future, or at least until rents improve enough to cover the mortgage.  I wish you the best in your adventure, just don't sell!!

Brian Bohrer - GRRS Inc

Hey Angelo,

When you assume a loan, you will be working with the lender who currently services the loan so there would not be a way to pre-qualify. What you can do though, if you already have a lender that you are working with, is ask them to give you an amount that you can afford in the form of a monthly payment. This amount is based on your DTI (or Debt To Income ratio) which most lenders generally want to see your total DTI somewhere in between 36%-48% when accounting for all of your monthly debt including the new mortgage payment. If your goal is assume a loan, I would offer the lender some sort of compensation as they are generally only paid if they write your loan, which is not the case with an assumable loan, as the current servicer will be underwriting and providing the new loan.

I don't think you mentioned your income, but if you can truly afford a $2,300 monthly payment, then you would have to make approximately $5,000 per month (or $65,000 annual) gross income and have NO OTHER Debts that are paid monthly... Student loans, car payments, credit cards can all affect your DTI, and would reduce the amount of mortgage payment you could afford.

If you would like to be on this list of assumable loan eligible homes, I would be happy to set you up with a list that is sent to your email.  Please reach out to me via a private message or text me at 719-212-5477 with your email address and I will get you set up!

Also, if you decide to work with me I can set up virtual tours for any properties that you may be interested in... Generally a normal VA loan transactions is 30-45 days when writing a new loan, but when assuming I would plan on at least 60-90 days from contract to closing.

Seller equity is the remaining value of the home that is left after paying all closing costs and loans.  For instance; if the home was sold for $450,000 and they owed $400,000 with $30,000 in closing costs, then they would take home $20,000 in equity/profit.  If you were buying off market, you may be able to negotiate a smaller equity payment to the seller, but anything on the market will be subject to realtor commission etc...  So in this example, if the home was found off market you may be able to pay $20k to the seller for his equity, but if it was on the market you would have to cover realtor fees and would likely pay closer to $50k.

I hope this helps!  Please feel free to reach out if you have any further questions! :)

Hey @David Cunha,

I do not think that there is a limit.  Although I do know that after you have 6 - 10 Conventional primary residence loans that you may begin to be scrutinized a little more thoroughly by underwriting.   Honestly, though I feel most banks and lenders want to have performing notes and if you look good on paper, then they probably won't give you much kick back if you qualify.

I hope this helps and thank you for reading!  Good luck :)

Hey @Angelo Aguirre,

I feel the most powerful tool in your belt right now is the power of using an Assumable loan to purchase your next house. With your VA eligibility you have a great opportunity to take over an existing lower interest loan to buy your home here in Colorado Springs!

As others have mentioned in the above posts, you will have some limited options at the $300k range if you are buying a home at today's interest rates.  BUT, if you assume a loan that was originated a couple years ago you will have a much lower payment and can afford a much more expensive home!   There are over 55 properties on the active market today in Colorado Springs that are eligible for a loan assumption.

I assumed a VA loan last November on a $425,000 home that had a 3.08% interest rate. I have a monthly payment of $2,157 that includes Interest, Principal, Taxes and Insurance! With your VA eligibility and the amount of eligible VA or FHA Assumable loans in this military town, you have plenty of options!

The only negatives with an assumable loan is that they take longer to close, 60-90 days generally, and you would also need to come to the table with a little cash to cover the sellers equity (if any) and some other closing costs.  But you will save thousands of dollars every year on mortgage payments and don't forget that juicy additional principal paydown when you have a loan that has already amortized for 24+ payments!

If you would like to learn more about the absolute best way to buy a primary residence in this market than check out my blog post on biggerpockets here...

https://www.biggerpockets.com/forums/922/topics/1175338-maxi...

Good luck in your journey and if I can ever do anything to help you along your path, please reach out and let me know!  

Take Care,

Brian Bohrer - Realtor

I agree that house hacking is the single best strategy to get into real estate especially in today's interest rate environment!  I also would like to remind you all of a strategy that is growing in popularity in today's market... Assumable loans!  

These have not been in the limelight since the late 80's when was the last time we had a high interest rate loan market that immediately followed a lower rate market. ALL FHA, VA and USDA loans are assumable!! Imagine getting a 2% - 5% interest rate today and how much cash you would be saving every month on your mortgage payment and the increased debt paydown! Combine this strategy with house hacking and you have a recipe for cashflow that is unmatched by any other strategy! (IMO)

I personally assumed a loan for my most recent purchase (must be your primary residence) in November 2023 and was able to lock down a 3.08% interest rate in a 7.5% - 8% interest rate market!   On my $400,000 home I am saving approx $1,100 per month in mortgage payments, and am also paying down and extra $450 per month in principle paydown!  This is saving me over $18,000 per year in increased debt paydown and lowered mortgage payments!  I am not currently house hacking, but this allows me to rent the home for a profit when we move out in 6 months, which would be impossible if I took out a new loan to purchase.

I have blog post on this topic if anyone wants a little more of a deep dive into the powerful strategy of combining these two methods!

https://www.biggerpockets.com/forums/922/topics/1175338-maxi...

I wish you all the best in your House Hacking and investment journey!  Reach out if you need any advice from someone who has been through the assumable loan process :)

Hey @Ted Usatynski,

I am a local real estate agent in Colorado Springs and I recommend all of my clients and colleagues to use Isela Owens.  She can shop several companies to find you the best deal for your situation.  Tell her Brian sent you!

Isela Owens - [email protected] - 719.219.8498

Wow @Jack Stalnaker !

You are making some great income at 19!  Keep it up and save for that down-payment.  I would advise as others have here, and strongly suggest the house hack strategy to start with!

As a primary residence you can put less money down, leaving more reserves to cover mortgage payments, renovations and to save up for your next down-payment!  You will also get a taste of property management and learn the ropes as far as tenant relations, contracts and screening.

Another excellent strategy that I feel is the most powerful tool you can use in today's market is to purchase this home with an Assumable Loan! All FHA, VA and USDA loans are assumable and there are thousands of homeowners who bought in 2020-2022 who have an excellent interest rate and have no or low equity as the market has shifted. You could essentially find a home with low equity, pay for the closing costs and take-over a 2%-5% loan, saving you hundreds of dollars every month!

I wrote a blog post that dives into the powerful combination of assumable loans and house hacking if you want to learn more!

https://www.biggerpockets.com/forums/922/topics/1175338-maximizing-wealth-the-dynamic-duo-of-assuming-existing-loans-and-house-hacking

Please feel free to reach out if you have any questions and I will be happy to assist!  Good luck in your adventure! 

Take Care,

Brian Bohrer