All Forum Posts by: Brooke Noth

Hi @Leonel Lerena, 

Typically it is a 6 month period, especially if you wanted to use the ARV of the property. I've heard stories of other people seeing shorter, but never actually experienced it with the guidelines given.

Thanks! 

Brooke

Good morning Jeremy! 

The main reason people love to make it a primary for their initial investment property is because you get a great primary investment rate and are able to do a lower down payment when you live there. If you are looking at an investment property, you'll need a higher down payment (15-20% on a single family home) and the interest rate is going to be higher, as it's more risky on the lender's perspective. 

You'll also need to qualify with your current housing expense + the new mortgage, less any rent that you could receive from that property with a percentage of the income. That can be tricky for some people if the property isn't going to cash flow well (i.e. if you are purchasing for appreciation rather than cash flow). 

Hope this helps! 

Brooke

Hi @Alex Petrowski - It's wonderful to meet you! Welcome to the exciting world of real estate. It's an incredible journey and we are so glad to have you! 

It sounds like you've connected with some great people. Let me know if you need any help or other connections in the area! I have contacts all over Texas and would love to help you get started. 

Hi @Geeta Sharma ! Love connecting with fellow Austinites! It sounds like you would be qualifying as a primary resident. It should be okay if you turn it into a rental later, as your initial intention was to occupy it as an owner occupant. How long would you be living in it? You'd want to make sure you live in it at least a year to qualify it as a primary residence. 

I'm curious. How does the county view the property? It should list it as a multifamily duplex or a townhome on the CAD. 

If you can truly only buy one unit, that would be a tough house hack, unless it was a rent by the room situation. 

@Peg Wilkinson - I forgot to mention, the process takes about 30-45 days right now. Mostly due to appraisal. 

Hi Peg,

What market are you in? We can do delayed financing on our end. I'm licensed in Texas. I've helped lots of investors with delayed financing (especially after winning the first deal with cash).

Let me know if you need help! 

Brooke

@Shane WIlliams - That's wonderful that your parents have experience with managing properties. That will be an amazing way to learn and grow. 

For an investment property, it'll likely be 25% down (I'm only licensed in Texas, but find that's pretty standard). If you were to occupy the property (house-hack by living on one side), you'd be able to get away with a lower down payment as it's your principal residence. 

Hope that helps! 

Brooke

Hi Shane! 

Congrats on starting out! That's amazing that you are not needing to pay for your current housing expense and able to jump right into a multifamily purchase. You'll want to be sure to have 25% for down payment, since it will be an investment purchase and you won't be living on either side. You'll also really want to decide if you'll be self-managing or using a property manager as you grow. That expense can eat at cash flow, but it's also a high value to have, as it can take a lot of your time.

You may also want to figure out what your 5-10 year goals are for owning, as you are limited to 10 financed properties each. If you are using both incomes to qualify that will limit you to 10 properties. If you can qualify individually that opens doors for more properties in the future.

Good luck on your investments!!

Brooke

Oh man. Getting permits in Austin can be really tough. Even the most amazing contractors have to wait a while and there are a lot of guidelines to follow. As a lender, I've heard lots of stories of delays due to permitting. It's not impossible, but just be ready for some holding costs.