All Forum Posts by: James Tiegs
James Tiegs has started 1 posts and replied 6 times.
Post: FHA or New 5% Conventional Loan
- Posts 6
- Votes 4
Hey Ryan,
One thing to consider is that conventional loans generally have slightly looser requirements when it comes to livability of the property upon purchase. So if you were looking for a value add property you might be more restricted on what you can buy with that loan.
Also, you will still pay PMI on the conventional loan but it will be lower than FHA depending on your credit.
Tim Swierczek is someone local that is very experienced helping investors. You should reach out to him with more questions!
Post: Advice on using heloc to get new primary home and turn old home into rental
- Posts 6
- Votes 4
Quote from @Blake Winiecki:
Hi everyone,
I am new on the BP forums and have enjoyed reading up on many posts. I am looking for advice on what direction to head. We currently own a sfh and have roughly 110k equity. We have a great rate and I believe could get decent cash flow if turned into a rental. Would it be smart to use a heloc to help for a down payment on a new primary home and turn original into rental? I understand we would then have heloc payment as well as a higher monthly mortgage because of current rates (assuming new home similar value). But on the flip side it could get us going in real estate and would get rid of our original PMI.
Any advice or thoughts would be much appreciated thank you all!
Hey Blake,
A few things,
You will want to figure out your cash flow from your current property and see if you would be paying less to live at your new property with that taken into account. However, with Heloc rates at probably minimum of %9 and with the new higher interest rate on whatever you buy I would be surprised if it pencils out.
Also, I’m not a lender, but I don’t think you can get a heloc on your house if your intention is to turn it into a rental.
If you want to make your next move in real estate a better idea might be to sell your house and buy a duplex with the proceeds that you can house hack. (Especially if you’ve lived there long enough to sell tax free)
Post: Current Underwriting parameters?
- Posts 6
- Votes 4
Quote from @Logan Singleton:
Hello, private money loan terms are roughly as follows for rentals
Rate: 8-11%
P/I or I/O 30yr or ARM
LTV: 75-85%
Post: Current Underwriting parameters?
- Posts 6
- Votes 4
Hi I’m working on trying to start underwriting some multifamily deals.
I’m curious what others are assuming as far as lending terms:
- Current interest rates?
- Any fixed or interest only terms?
- approximate current Loan to Values?
I know this is all dependent but just curious what others are getting in the current debt market.
Post: Searching for local meet-up groups! Any suggestions?
- Posts 6
- Votes 4
Here’s two that I’m going to next week. Hope to see you there!
https://meetu.ps/e/Mryt4/13bXS4/i
https://www.biggerpockets.com/forums/521/topics/1147432-rei-...
Hello,
I'm brand new to BP and real estate investing as a whole. I would love to come to the meetup though and learn about the Twin cities market. Hopefully there is room for newbies as well?