All Forum Posts by: Jack Mawer

If it is not too much work and the 43-unit cash flows significantly better, it could be a good choice.. really tough decision, would recommend you create a deal analysis to help you narrow down your decision.

I think the $50-100k range would be a good place to start especially with $20k to invest. However, I would make sure you have a lender lined up who can guarantee they can refinance the deal - there are restrictive prepayment penalties on small loans in PA which in turn will make your interest rate higher and a lot of lenders who refinance a BRRRR are looking for at least a $100k loan size. Talking with investor agents is a good start, I would also reach out to wholesalers in the area as well - good luck!

I would say it very much depends on how busy you are - if you are very busy I would recommend hiring a property manager - if you are not I would manage it yourself to not further eat into cash flow!

Consult with lenders as well as private money

I would make sure you are educated and have talked to people with experience with what you are trying to do - obviously there are potential obstacles that I would prepare for ahead of time but the high-level idea is a good one - add value to a property and live for free while hopefully using the additional rent money to pay your mortgage while your house appreciates. Get as educated as you can in the next 10 months, best of luck!

I would run the numbers and compare what you will bring in in rent versus you mortgage payment as well as other associated costs of owning and operating the property (tax insurance, property management, internet, etc.) If there is not a harsh prepayment penalty and you see a cash flow opportunity I would go for it - especially getting it under value and having that cushion. I know it is scary but it seems like you have mitigated the risk - on the bright side, rates should start to decline in the near future and you can always refinance.

Yes congrats on a potential deal! I think if you see him in passing often just bring it up casually but be a little more serious about the inquiry - that should lead into other details such as owner financing - best of luck.

What Chad said - a DSCR loan will strictly view your FICO and the asset cash flow and is a program strictly for rental/investment properties

I would start with a conventional loan (maybe FHA to save cash for reserves) and as you continue to scale start looking into DSCR or private money loans.

I agree with Tarik on this one - if you are concerned with DTI, I would look into a DSCR loan as DTI will not be an issue/necessary to qualify. In addition, there are some DSCR lenders out there who can finance your fix/flip loan as well and then look into the refinance with you. If you have already purchased the property with cash, speaking with lenders about delayed financing or looking for private money to fund the rehab might be your best bet. Best of luck.