All Forum Posts by: Carlos Valencia

Hello Dana, 

Congratulations on your current investment. Sounds like you already successful with your first property. Theres many different ways to go about it. Just depends on what market and what type of investments you plan on doing next. Happy to connect and learn more about your scenario. 

@Albert Bui @Matthew Kwan

Hi Ryan, 

Main thing to look out for is your DTI. Question is will the investment property make enough cash flow at 75% in rents received to cover the whole monthly mortgage with Tax and Insurance or will there be some negative remaining that will count towards your DTI. Whatever you have remaining in your DTI is what will determine you borrowing power. I would suggest to have speak with a Mortgage broker who understands how to best help you execute this strategy to be able to possibly qualify for both or look at your options.

@Albert Bui @Matthew Kwan

Hi Morgan, 

Welcome to bigger pockets. So much great information here and great people. I would say if you have not started already to make sure you are already pre approved with a lender so that in the event a deal comes your way your ready to execute and move forward. Good luck on your search. 

@Albert Bui @Matthew Kwan

Yes you are able to keep FHA loan on that property and rent it out. Then getting a conventional loan for a new primary that you will be living in it.

Hello Sean, 

Yes very well said. Its also just as important when working with lenders dont pick a lender solely on rate. Make sure you see the big picture and value they offer. Once you find your team to help you on your RE journey try not to let them go. 

@Albert Bui @Matthew Kwan

Hello Jennifer, 

Schedule a call with a lender preferably a lender that is also an RE investor themselves as they will have more knowledge on how to navigate the lending guidelines for RE investing. Share your scenario with them and do a mortgage planning call with them. Don't be afraid to ask any question you may have as theres so much to learn. Hope this helps. 

@Albert Bui @Matthew Kwan

Hello Alex, 

Regarding refinancing your FHA into conventional is going to depend on what your current rate is. Would it make sense to refi? thats a question you would ask yourself. Have you lived in your current home for more than 12 months to move out to keep that home as FHA? Assuming you lived there for over 12 months you can move out and rented. Hopefully the rents will cover your mortgage payment including tax and insurance and this will free up your current borrowing power to buy another property. IF its in your budget you can go 5% conventional as new primary home. You can slowly rehab while living there then rinse and repeat. Hope this helps.

@Albert Bui @Matthew Kwan

Hello Shane, 

FHA is a great product to use to house hack as it allows you to invest with 3.5% down payment. When investing in multifamily property theres some things to consider when using FHA. When you use FHA for a 3-4 unit property you have to pass the self sufficiency test. The self-sufficiency test is to prove that 75% of the rental income you'll receive will cover the full monthly mortgage PITI (Principal, Interest, Taxes, Insurance payment. For example lets say your mortgage payment of PITI is 3k you have to make sure that the 75% rental income will cover that whole number of 3K. Meaning that if you have a fourplex and are able to get $1,200 in rents for all the units you will be at $4,800 X75% =3,600 In this example you would pass the self-sufficiency test with flying colors. As long as your rents are equal or more you will pass. Make sure to look out for that when your out there looking for a 3-4 unit property. If you buy a duplex this does not apply.

Conventional to but a multifamily you will need 15% -25% down to get into your first multifamily. No need for a self sufficiency-test. 

It will really depend on how your market is to see what option will fit best for your scenario. Hope this provides a little more clarity to figure out what option is best for you. 

@Albert Bui @Matthew Kwan

Hello Kristine, 

Congratulations on your growing family! Like Ryan mentioned above. In order to be able to get a more clear picture on your strategy to see what the best option for you is to get pre approved and work with a realtor. Working with a mortgage broker that also invest and helps many real estate investors is important as they will have more knowledge on how to navigate lending guidelines for Real Estate Investing. I see your in the Los Angeles Area and if you would like to meet other like minded people in this space we actually host monthly meetups in Anaheim not too far south from LA. Happy to connect and send you more info. Feel free to send me a DM. 

@Albert Bui @Matthew Kwan

Hi Max, 

Theres so many areas in Real Estate Investing you can focus on. First try to figure out what area you want to focus on first. Ask yourself if you want to learn how to buy and hold, Flip, short term rentals, commercial etc... I would suggest to look into all these areas to find out what you'll really enjoy doing. Look for Real Estate Investment meetups in your area to meet like minded people. This will allow you to meet some experienced people and will allow you to ask them questions on their experience. Hope this helps. 

@Albert Bui @Matthew Kwan