All Forum Posts by: Eric Kump

Hey Chris, it depends on the type of loan you are getting. If you are getting a conventional loan, you will need a signed rental agreement and a security deposit before closing. I have seen this first hand. Feel free to message me with any questions! I am a loan officer at VIP mortgage.

Hey Reinaldo, I am a loan officer at VIP Mortgage and can do HELOCs or home equity loans on primary and investment properties, message me if you would like a quote, I am licensed in Texas. Take Care!

Hey Zachary, I am a loan officer at VIP Mortgage and can do DSCR loans. I'd be happy to get you a quote, I am licensed in Texas.

Hi Courtney, I do not live in the Houston area but I am a loan officer at VIP Mortgage as well as a real estate investor. I have done dozens of loans in Texas including multi unit properties. Feel free to let me know if you have any questions about lending!

Hey Simon, great question I'll speak from personal experience. I became a Loan officer 2 years ago at the age of 26. It is a career with unlimited potential. It is a sales role so sales experience definitely helps. I was lucky because I got in at a time when rates were historically at their lowest and was able to close alot of deals. Interest rates have been increasing quickly since the beginning of the year, but if you are in it for the long haul it shouldnt matter too much. The sooner you start, the sooner you can learn. 

(The people that I would worry about in this market are those that are looking to 'get rich quick' I know loan officers that make 20-30k a month and others that make 3k.) 

Make sure you do your research and go with a company with great culture and leadership. I'm very happy at Cardinal Financial. The success I was able to have helped me be in a position to buy an investment property last month. I don't think I would've been in that position if I wasn't a loan officer. 

Feel free to message me with any questions!

Hey Lauren, yes you can. It does depend on your debt to income ratio though, if you need to use Airbnb income then most lenders will require 2 years of income as shown on tax returns. 

You could turn it into a long term rental for the time being. If you have a lease agreement and deposit then Fannie Mae or Freddie Mac can use that to help your debt to income ratio.

Typically 49% debt to income is the highest they allow, but you also need to be able to have a credit score and assets to support it. 

I hope this helps!

Hey CT, that looks like a solid plan to me! The only thing I would add is to have a plan in writing if either of you want to get out of the deal, whether that's buying the other person out or some other way that's up to you and your friend. It sounds like you know what you are doing since you own 2 other properties, but even if I invested with my best friend I would feel uncomfortable if I didn't have a potential exit strategy in writing. 

Best of luck to you!

Hey Will, are you thinking this will be a buy and hold investment for the long term? If so buying a turn key property is nice to have. If you haven't been preapproved yet I would definitely start there so you have a good idea of what the mortgage payment would be. From there make sure you account for future issues that will come up with the home (capex). If it makes sense as far as the numbers go I'd say go for it! 

On the flip side if you end up going with a different home I'd say consider one that needs a little bit of rehab, flooring, paint, countertops, etc. If you find a house that needs rehab in a great area, you can improve it and in the future do a cash out refinance to pull out your initial investment and buy a 2nd rental property. I'm sure you've seen it referred to as the BRRRR method.

That's the fastest way in my mind to scale from owning 1 home to 10 in a matter of a few years, if that is your goal. I also always liked on the BP Podcast how Brandon Turner would mention that he looked for houses where he could put up a wall and add a bedroom to create more value and charge more for rent.

These are just a few of my thoughts, best of luck to you. Let me know if you have any questions!

When you put under 20% down on a convential loan you have what is called private mortgage insurance. It is a monthly payment that you pay until you reach 20% equity in the home which could take several years. This could be anywhere from $70-$200+ depending on your loan size. You pay this in addition to your principal and interest payment, homeowners insurance, and property taxes. If the value in your home increases you could always refinance and get the PMI taken off quicker. You can even refinance within 6 months of owning the home. Thats what I did last month, I lived in the home for about 18 months, made home improvements and did a cash out refinance. The value of my home grew about 200k from when I bought (its a crazy market out here in AZ). I was able to take out 110k and am going to put it into an investment property. So, 3% down let me to eventually pull out over 100k (this is making money go further)

If you were to put 10 or 15% down the lender may give you a better interest rate, typically the more you put down the better the rate is the first time around. 

In my case, I preferred to put the minimum down so that I still had money for unknown housing expenses, those occur often when you first buy a home!!

Gotcha, a primary residence is typically 80%, an investment or 2nd home would be 75%.