All Forum Posts by: Ryan Anderson

@Korbin Smoot I'm always on the lookout for a good 4plex deal around the Idaho Falls area

Hey Ajay. If I could start my real estate journey over again one thing I would do more of is house hacking. There are 2 huge advantages that I don't think you don't get with the BRRR strategy. House hacking allows you to lock in extremely low interest rates as an owner occupant and lock them in for 30 years. That ability to leverage your money is a huge draw for me to real estate. I have not done the BRRR strategy but my limited understanding is that you are probably going to use a portfolio loan (not FHA or Conventional financing) in order to do cash out refinancing. If that's the case then the rates are going to be a little higher and you won't be able to lock them in for 30 years. If you're not interested in holding very long term then maybe that's not as big of a concern. I like it because it limits interest rate risk and I can set it and forget it. So if you're in a position to house hack I would do that as many times as possible. Say once a year. And just as Jack stated, since you're not required to put a ton of money down as an owner occupant, it will allow you to still invest elsewhere. So to me it's less about what the numbers are (which is why I didn't address them) and more about understanding the reasons why you would want to take one approach over the other. Good luck

Good luck on your purchase. I'm in Southeast Idaho and I've used a lender from your home state of California previously on more than one occasion because of their low rates and online service. I just ran their rates online and they're 4.293% APR on your 25% down 30 year amortization example so they would offer some savings. That's typically what I have noticed is that they run about .25% less than most.

One of my last loans was with a regional credit union that offered just a 10% down loan for 1-4 unit properties with no PMI. That was a few months ago I closed on that but it was a 4.75% rate (can't remember the APR). But I thought that was incredible for a fourplex, 30 year amortization, no PMI. I'd be curious who is offering the 15% down payment option since I'm not allowed to do any more 10% down with this credit union.