All Forum Posts by: Darnell Lockett

Hi @Hansel Gunawan. You're talking about buying a MF property in order to live in one unit and rent out the others correct? If so, I think that's a great idea. Get a duplex and rent one side out. You can use a FHA loan and put as little as 3.5% down. If you try buying a triplex or fourplex using FHA, the property will have to pass the self-sufficiency test...otherwise it wouldn't qualify using FHA.

Without knowing more about your situation, it's hard to say what's best for you @Annette Barnett. I'm personally partial to DSCR loans because that what I use for purchasing our properties, as well as what our clients typically have us put them in when we're doing their loans. That however may or may not be best for you. Talk with several lenders and mortgage brokers to see what your options are. DSCR loans are an excellent tool for investors, but there are other options available as well.

Hi @Kirsten Milliken. In my opinion the lines between "online lenders" and "local lenders" have become blurred. There are thousands of loan officers who work with "big banks" working right there in Nashville, who know the pulse and investor market just like the loan officer at the local small bank does. Additionally...many if not most lenders have products that are specifically for self-employed borrowers, especially investors. DSCR loans are an excellent option. They are fairly simple to close and don't take your personal income or debt into account. Income and debt is based on the subject property and how well it is or has the potential to cashflow.

It's not complicated doing a HELOC and new home purchase at the same time @Victor Quesada. Just make sure the lender doing the HELOC and the one doing the new home purchase are communicating with each other. The key is to make sure the lender that's doing your new home loan purchase is aware of the HELOC payment, and takes that into consideration when determining what you qualify for with the new home loan. Bottomline...if your Debt/Income or DTI still works, I don't see why there would be an issue.

Will you be residing in one of the units @Alfred Hall

Hi @Henry E Williams. Good question. Lenders/Mortgage Brokers typically want to see copies of signed leases for 1-4 unit properties when financing a loan. Since it's an eight unit, they'll probably ask for a rent roll instead. As for the need to have signed leases in place before or after closing, that's hard to say. Are all units occupied? Are all tenants paying rent on time? Are there any problem tenants? Unsigned leases might be a blessing. I'd talk with a RE Estate attorney that specializes in tenant/landlord agreements and ask their perspective from a legal standpoint.   

You're going to be residing in one side of the duplex correct @Joe Felix, since you're going with a FHA loan? Additionally, it's great the seller is willing to do the repairs. Had they not, you could do a FHA 203K rehab loan...in which case the repair costs would be financed into the loan.

Congratulations @Ken Livingston. 

 Awesome. Looking forward to it. 

Hi @Tina Liao. It depends on what you're trying to do. If it s a fix and flip project there are private money lenders available. If you're trying to buy and hold you might want to go with someone who does DSCR loans or other types of loans for investors. Although there's not many owing that low, 75K is doable. I'm more than happy run a scenario for you if you'd like.