All Forum Posts by: Brian Scott

Thank you everyone for the guidance and advise on this one! I am new to bigger pockets and feel like I have already learned a ton in the last month.

Thank you!

Thank you everyone for the guidance and advise on this one! I am new to bigger pockets and feel like I have already learned a ton in the last month.

Thank you!

Thank you everyone for the guidance and advise on this one! I am new to bigger pockets and feel like I have already learned a ton in the last month. 

Thank you!

Hey everyone,

Has anyone used the Fannie Mae 5% down loan program to purchase a second MF home?

I already own one and am looking to purchase a second one. I know one of the main qualifiers is it has to be owner occupied - which is fine.

Will there be any issues with this second purchase being in the same town as my first MF home?

I know some regular conventional investment property loan programs have certain rules about this but does Fannie Mae?

Any advise is greatly appreciated!

Thanks!

Hello everyone,

My wife and I own a mutli-family home and purchased it in February 2022 for 495,000. We put 5% down using an FHA loan and currently have an outstanding balance of 450,063. We opted for the FHA so we could get into it with a lower down payment.

We have a PMI payment of about 300.00 per month.

We have put a considerable amount of money into the home to include a completely renovated 2nd floor 2 bedroom unit. Updated bathrooms on the first and second floor. A new kitchen on the first floor. New roof. New paver patio. New Driveway. New Garage door on detached 2 car garage. I am confident there is some considerable equity in the home. I am estimating my home is now worth at minimum 615k but think it could be anywhere from 650-700k

My current mortgage payment is 3324 (that with PMI). The second floor unit pays 2100/month for rent. That leaves me with the remainder 1224. I can rent my current unit for 3500/month. If I moved out today and was renting both units out I would be making 5600/month on rental income. Minus my current mortgage of 3324 the cash flow would be 2273.

I would like to get out of my FHA loan and into a 15 year conventional. I know my mortgage payment would go up the amount of rental income I receive should cover that new payment with their still being some cash flow.

I would like to get out of my current FHA so I have the option to use it for my next MF purchase (if that is even allowed I am not sure).

My question is what am I looking at currently for rates on 15 year refi conventional loans? Is this move worth it? Can I even use an FHA loan again after this one is converted?

Please advise!

 At least 615. My neighbor has numerous MF properties and he believes it will come in somewhere between 650 and 7. 

2.75 % on a 30 year FHA

The more I look into this I might want to refinance into a 15 year loan and to get rid of the PMI.

I know my monthly payment will go up but my current mortgage is 3324 (just went up due to taxes smh)  

The other unit in my home pays 2100/month for rent. That leaves me with 1224 a month for my payment. The unit I live in can get 3500/month in my area.

I can refinance to get rid of my FHA and PMI on MF 1 and use an FHA to get into MF # 2.

MF 1 rental income will cover my new mortgage payment with cash flow and I can grab my second MF.

Any thoughts?

The property is worth more then 495k. It was worth more then 495k when I purchased it. It was a private sale between a friend and I. The comps in the area for MF's were at minimum 550k.

Since purchasing the home there have been many updates to it to include a fully updated 2nd floor unit, updated bathrooms on both floors, new kitchen on the first floor, new roof, new driveway, new paver patio, updated front porch. So I know there is a substantial amount of equity in the home but I see that using that equity might not be the best move forward.

I will have to explore my loan options.

Well that's all depressing to read!

But yes hindsight is 20/20. 

So what are my best options on a refinance?