All Forum Posts by: Derrick Dill

Tip: Get your credit score up so you can get more favorable loans, saving you thousand of dollars

What's the HOA fee? Townhomes have HOA, SFH don't.

The HOA will also limit what you can do to the property, will need their approval for every change. SFH is yours, and doesn't need a committees approval. HOA fees usually go up annually taking away from your ROI.

I always plan to convert garages to bedrooms/units and the townhomes here in California strictly do not allow it at all.

With this being said, there are several BP investors who are immensely successful investing in townhomes, everyone has their own niche

^I'm in California, got my HELOC on a multifamily investment property through penfed..

^my understanding is the year you take out withdrawal you'll be taxed on the amount you take out. When you re-pay the withdrawal (within 3 years), you file an amended tax return and will be reimbursed for that year. 

You'll be taking the hit on taxes for the year you withdraw

Like some other posters stated, you can still use FHA again. You'll need to have 25% equity in your first FHA, or you can refinance to conventional with your first FHA and use FHA again.

Other options: Try other lenders/brokers

Pay off something to lower his DTI (auto loan? CC?)

In regards to direct lender: depends on your DTI. If you're coming out of pocket and your DTI is way up from the first property, his response might be valid. If your first property cash flows and your DTI is not the issue, he's out of his element.

In regards to broker: I'm buying a second FHA property RIGHT NOW, with still another FHA loan on my books. Completely wrong

Looking at it from a macro perspective:

Someone cannot afford to pay for their mortgage so they are kicked out and foreclosed on. They'll either be homeless or NEED a place to stay. Population goes UP every year (even with COVID), housing inventory isn't keeping up.

Depends on how the house is structured and how you feel about privacy. For example: single family home with 1bd/1ba downstairs, 1bd/1ba upstairs w/ kitchenette, same concept. You'll be living with people directly, it's nice if you have trustworthy family or friends that you'd like to live with. Another thing to consider is making the extra room available as a short-term rental (Air BNB, or for travel nurses).

Duplex/triplex is nice because there are usually separate entrances and more privacy. Nice tax benefits. 

I hate to say it "depends", but it depends on YOU

LB has some really nice and not-so-nice areas, suggest you drive around the areas you'd consider during day and night. I would consider looking into ADUs (additional dwelling units), can do garage conversion for 50k or so (depending on variety of variables), and rent out with good ROI.