All Forum Posts by: Austin Fruechting

@Joe Fornasiero

Given 5 units you probably can't do the FHA financing. That's for up to 4 units.

Do you think she'll go for $250k? 

 If you make another comment on your original post and ask for more input, it will bump it to the top and keep things less cluttered.  No worries, good luck Alex!

That's a fast double post. 

Yes, banks will typically lend around 75% LTV (loan to value) on a cash out refinance.

I'm just assuming a 4.5% on 30 year for a single family.  It may be different.  It could be a 5% on 20-yr. Even then you are looking at $594 a month, or practically the same you are now.  

Using a VA/FHA loan lets you buy a 2-4 unit with just 3-5% down if you are going to live in one of the units.

Use the cash flow from the first property and additional monthly savings to save up for the next property. That one you would have to buy traditionally with 20-25% down. 

Over the first 10 years you would only have an extra $9,120, then who knows over the next 10 years where interest rates will be.  So that less than $1k per year doesn't make a huge difference on your ability to invest more.

Go with the shorter term fixed.  You'll be paying down more principle faster.  So on the 20-yr you could cash-out refinance to buy another property years earlier than on the 30-yr.

@Kassie Carrell

Here's what I would do: talk to a bank about refinancing (and see if you'd qualify). At 75% LTV you could get a 90k loan with lower payments than you have now (30yr 4.5% is $456/month, $5,472 a year). This would give you more cash flow than you have now, pay off your $18k debt, and put $12k in the bank.

Take that $12k and use it to buy a duplex and live in one side using an FHA owner occupier loan. Then your monthly living costs will be next to zero. That combined with Dave Ramsey budgeting and you'll be saving very fast to continue to acquire.

@Kassie Carrell - do you rent or own where you live?

Work started today.  The tub resurfacing is done - fantastic result for just $250 per tub. 

@Daniel Llewellyn - If you're looking for commercial and larger multi-family it's almost a must. A lot of those don't go to MLS but will be on Loopnet, at least in the KC area.

If you're looking for smaller multifamily (2-4 units) no real benefit. 

What are your loan terms and how much cash did you put down?