All Forum Posts by: Jason Wray

Peter,

In this inflated market I would most definitely advise in using the banks money.  Keep your money in the bank and stay cash fluid while rates are actually getting better on investment Non-Owner Occupied rentals and second homes.  Your asset position also plays a vital role in getting premiere financing and rate exceptions.  If you wanted to put yourself in a better position you could always just use an accelerated payment plan until you know the future/market.

The other thing is why position your portfolio to one property when you could have 3-4 in a short period of time.  Use the cash to put down 15-20% on multiple properties.  That way regardless of the market value you have multiple renters and income versus one property/one rental.

Will,

You have two options you can either go buy a home as a true "Second home" requiring 10% down.  The other option is refinance the loan into conventional and buy a new primary 3.5% down.  You can buy another home if your income qualifies so either option could work.

@Alipate Moleni  Yes, You would simply do a refinance on each property where you could take the cash out needed and reduce the rate below 5% on a 30 Year fixed.  I would love to talk to you so feel free to email or call me and my email is below.

John,

If you qualify for the home and currently work remote FHA will allow you to buy the home. FHA has rules in place for example to keep first time home buyer options open and available. That being said there is a rule that states you must occupy the home for 12 months. There is also a rule that allows for extenuating circumstances and for what is called a "Change in Life Circumstance" which would pertain to a move related to a work, school, increase in family (GLA needed), retirement (down-sizing) etc.

So Covid is actually on the list of examples when it comes to this issue and how its treated. If you purchased the home and lived there just under (12) months so long as the mortgage is being paid in time your not in default. How ever I would stress that you refinance that property should that issue arise to remove the FHA mortgage insurance and convert that loan into a conventional loan. That will satisfy the occupancy issue and allow you to use the FHA loan again on the next home.

I would not let that issue hold you back form buying a home but I would  keep an eye on this market as I think its about to start to drop in more than a few areas!

Michael,

So far its a bill but not a law and to be honest you would have to live in the house for (5) years without selling or refinancing the home?  You might as well use your local County or Federal DPA program that will actually give you a down payment and assist in closing costs - rather than a tax credit (holding breath).  You might want to just look into the CHFA and DAP programs in CT.

At least you can refinance out of an FHA to remove the MIP and still be good in that program. Which would essentially free up your first loan from FHA to CONV. to start all over again on another investment or primary.

Peter,

You can pick up a decent (1) bedroom condo in Canton for around $900-$1150 a month.  So if you were to rent out a unit/room it would be within range to ask $950-$1000 if that offered shared costs.  Electric, cable/wi-fi, water etc to make it make more sense and also avoid a more aggressive contract.

Co-ops are the tough part because it's not the bank that sets the down payment rule it's the Co-ops in most cases.  I tried to do a 5% down for a customer in NY and the board kicked it back due to 20% requirement rule in the by laws.

Symone,

Spring hill is a great place to to buy real estate and it was a hotter market back in 07/08 before the market went upside down. It's a little rural but since the expressway has been revamped into Tampa it opens up a lot more traffic and options. There are some area effected by sinkholes but you can pay for a report to have the ground checked. I am in Clearwater/St.pete but have done a lot of business for REI in that area.

Doug,

That is one the best ways to increase your real estate portfolio quickly!  Use the equity now while rates are still historically low and and buy more investment properties to increase your long term income.

Marshall,

In some cases you can use a traditional loan as long as the repairs are mostly cosmetic in nature and do not pose a safety or health risk.  There are some cases where the repairs are noted but they do not pose an issue to where it is listed as "Subject to" and the bank can close.  You can even get away with some smaller repairs if the lender approves and the title company holds the smaller repairs in escrow until completed.

If you do not own a primary you can also use the 203K and Fannie/Freddie rehab loans but they are for primary.  In some cases you can buy bigger using that loan to get into a bigger home rehab laon.