All Forum Posts by: Jack Miller

DSCR is your best bet. It will be extremely challenging to get a conventional/govt/portfolio loan for residential RE on your own without current income, and less than 25% down worsens this outlook. There are some crazy, super complex strategies that could theoretically work, but it's a long shot. For a DSCR, at 85% LTV (15% down), your rate is going to be 9%+ for the most part. Ideally, you'd want to be no more than 75% LTV, and 70% is better.

If you don't want a DSCR loan, your next best option will be to partner with someone with good credit and enough income to qual. Even with private/seller financing, if you're househacking, the lender will still be subject to the ATR rule and ignoring this will cause problems for everyone. Income is a basic requirement for any kind of Conventional/traditional loan.

As far as rates, pretty much any 30yr residential investment property mortgage anywhere near par at 85% LTV is going to be north of 7%. With a househack, you could possibly get low 6's with a buydown or a sweetheart deal, but I wouldn't plan on it. If househacking with less than 20% down, you'll also have MI stacked on top of your rate. Long story short, 7%+ is just where the market is at right now.

In your shoes, it might be simpler to stay focused on grad school and use your cash to lend to other investors or take an LP role.

Yea I hear you and that is the consensus I have arrived at. I was hoping there maybe some special portfolio loan that may work but I may get a cosigner if all else fails. Do you think at 7% DSCR it is even worth it, considering the fourplex will essentially just pay off its own mortgage + taxes and not have any leftover?

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Quote from @Theresa Harris:

Do what you can to keep the cost of student loans down. Are you planning on living in one of the units? If not, you often need 20% down. How much can you borrow and do you have someone who could co-sign a loan?

I can maybe make it up to 20% and no cannot live in the unit

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Hello, I am looking to buy my first property (most likely an investment fourplex), but just left my job to start a grad program. Prior to this, I had 2 years of good tax returns from 1 stable job as well as my side business.

Now that I am in grad school I cannot work due to program guidelines and time, but am still wanting to buy an investment fourplex that can build me some equity to offset these ridiculous student loans. After grad school I anticipate starting salary of 300k+, but will have 200k student loans which will only delay/limit me from starting my real estate investing journey.

I have enough saved for up to 15% down payment on a fourplex around 450k, but dont want to go hard money lender/dscr as they are currently in 7-9% range. Is there any type of conventional/portfolio loan I can pursue? Or if you have any feedback please give me input. I just hope I can leverage my tax returns somehow, and my future career prospect but I really don't know.

Thank you all in advance!

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All Forum Posts by: Jack Miller

Jack Miller has started 1 posts and replied 3 times.

Post: Good tax returns but no job while in grad school

Post: Good tax returns but no job while in grad school

Post: Good tax returns but no job while in grad school