All Forum Posts by: Jason Wray

Fernando,

To help save money I would use FHA for the 3.5% down. Unless you have 15% down which would help lower the payment because conventional PMI (mortgage Insurance) is less then FHA MIP per month. This is based on a Multifamily which with FHA it stays 3.5% down but with conventional it requires 15% for a 2 unit and 3-4 Units require 25%.

I would start looking in and around Clearwater Beach and look all the way South West along the Gulf Beaches. Depending on your price range there are a lot of opportunities and on both Multi-family and even some decent Condo's/Town Homes. I just looked at one today over off of Pierce Street in Clearwater 7BD 2 BTH Duplex 2 minutes from Beach Listed at $525K with wiggle room. If you have time there are a lot of FSBO homes in and around the area as well so it's worth a drive.

I know a lot of owners who have listed their properties and have very little marketing so you will not find them on the normal REI sites like ZL or RedFN.

Fernando,

If you have a good job now making decent money being broke is not a road block in obtaining your first home.  As long as you have good to fair fredit 620-640 you can still get a approval through a DPA - down payment assitance program through your County or through CHENOA DPA.  That will give you your down payment for the home.  You have closing costs but it can be covered through the purchase with seller contribution or lender credits.

If those two factors are covered you really only have to cover the cost of the appraisal between $500-650.00 and that could get you the keys to a new home!  When ever you think your ready you just need to call the bank and get a pre-approval.  That process can help make or break if and when you can buy a home.  You just want to have your income and credit reviewed and then set up with the DPA and its a green light.

Garrett,

Your in the best position to be in with having a ton of equity and being able to use it to help take out some cash to buy more investment properties.  You can do a couple of things you can take out a line of credit or take out some cash through a refinance.  You also can do both so that you have access to liquid reserves sine cash is king and also have a line of credit as a back up for renovations or repairs.

When you buy multiple rental properties you mut have PITI reserves and that mustt be in liquid reserves like cash in an account or savings. A HELOC or line of credit cannot act as a reserve or an asset for PITI reserve requirements. Once you buy more properties you can always refinance them down the road and pay off the HELOC or replace the cash taken out of the Tri-plex.

Values are starting to drop a little in certain areas so now might be a great time to start.

Ivan,

Some of the best places to buy in florida in order to make money and not over pay are in Clearwater, Clearwater beach, Treasure Island, Saint Petersburg, Saint Pete Beach, Downtown St.pete, and in some parts or Largo/Seminole.  Clearwater was rated as on of the highest Airbnb cities in Florida and our Gulf Beach traffic has been insane since 2019.  property value have soared and do not seem to be dropping even with inflation and higher rates.  That is mainly because Florida especially the Gulf Beaches is an Amenity area.

Tampa also holds value for investors due to the high commerical traffic and business district.  Which also includes traffic from Macdill Air Force Base and higher rents.  I have properties here in Pinellas County and values have helped add many more doors.  It's a great area to buy properties that need renovations/rehab and reap the benefits to turn equity to cash!

Hello BP Members!

As you know I am an FDIC Banker for TFSB, and as of 2023 we are now offering a investment purchase which includes SFR and any (2-4 Unit) Multifamily with less down! Good news on top of that is it requires NO Mortgage Insurance & No Prepayment Penalty! We call it our Wealth Builder Program to help new and seasoned REI build their protfolio that cash flows right out of the gate!

Call or email me for a quick and easy Free Quote.

[email protected]

Jason Wray

We Fund Nationwide

Alex,

The reason your closing costs from RM were so high is becuase they are a lender with a lot of "margin" built into their branch models. So more than likely you were paying points on that quote which caused it to be several thousand dollar more than what it would have been with an actual FDIC Bank. Banks do not charge points on their traditional loans only if your buying down the rate.

My advice would be to get another quote and also look at doing a non collateralized personal loan so that they next funds if needed are not attached to one of your propertys as a second lien. You are doing the right thing taking out the cash now while values are topping out and continuing your REI.

Alicia,

I would first get a pre-approval from a bank/lender and explain the goals for the purchase. Once your pre-approved I would download a "State specific" residential purchase contract. Have all parties sign and fill it out completely. Submit that contract to the bank or lender and discuss if the family members can help offer a "Seller Contribution" which means help cover some of the closing costs by using the equity in the home. They do not come out of pocket they simply sell you the house and offer a dollar amount or a % percentage up to 6% for FHA and usually 3-4% is common and fair but up to the seller/family.

You then want to choose a local title company or ask the bank/lender for one that they use that can help save money.  They will help arrange the closing and the recording of the title/deed witht the county.  They also order the chain of title to make sure all of the taxes and liens are being paid and up to date.

Yes, You can use a DSCR program where the approval is based on the rental income only. Fairly easy process which is considered a Lite Doc deal.

John,

Best advice would be to focus on Multifamily homes so if you do not own a primary your in luck you can get into a MF with less money down 3.5%.  If you own a primary then still focus on a 2-4 Unit where you are looking at 15% down.  Since you have $70K that is a good chunk of change and depending on where in the US you are buying it can go a long way.

If you can find something that needs a little renovations and small cosmetic upgrades even better. Anything that is turn key right now again depending on state/county can be over priced. If the cash flow is solid then its a good deal either way unless you are looking to pull equity/cash out right away. In that case I would look for something you can improve with a small budget and borrow off of the ARV once the renovations are complete.