All Forum Posts by: Jason Wray

Ven,

Welcome aboard to the BP forum. If you are over in Cali i would take a look at the Oregon Coastal properties and the STR 2-4 unit market over there right now. Reach out to Anthony "AJ" Wong he is a member here in the BP forum. Great Real Estate Agent in CA & OR and has a Niche portfolio of cash flowing listings.

@AJ Wongundefined

There is a good chance if you do not have (5) total meters I have seen garage conversions (with a pulled permit) not get classified as a 5 unit or commercial. Every County is different so I would check with zoning and make sure there would be any restrictions/issues.

I have seen it on 2-3 units as well where they close off a top story or below and have it still listed as 2-3 units without giving merit to the conversion due to lack of additional meter.

Chris,

I sent you a message as an introduction.  Great time to for multifamilies rents are high rates are dropping and values will continue to climb for 2024!

Gladys,

You can actually have the best of both worlds if you know of a great piece of land/lot. You can take advantage of a construction loan to build a New primary home or Vacation home. It allows you to include the land into the financing with the build.

It is becoming very popular in multiple states to find a nice piece of land or land lot and put a "Modular" or Manufactured home on the land. Now with a Modular, Manufactured and "Tiny Home" there is "No" waiting 6-8-12 months for the builder to construct it from foundation up. Instead you can pick out a Prefab home or by design and have that Modular tailored or built on site in half the time!

Because they do not require the builder to break ground and poor foundation its quick and easy. Values are also starting to show appreciation for these site built Modular homes as well, its a great way to buy low and sell high.

Matt,

I had some properties up around Dracut/Nashua that we sold a few years back. I also had a few up in North Conway which is a great short term rental location. Dover is a great place to start and I would suggest a 2-4 unit buy it as a primary so you can save on the DP. After a year refinance and jump into another REI and keep the ball rolling.

Mortgage rates are starting to come down so it will trigger a seller's market with multiple Bids/Offers so be prepared. if you can get a head of the game with preferably a "Loan Commitment" letter from a Bank/Lender versus a Pre-approval it can increase your chances on the offer being accepted. Know your rents in advance "market rents" so you can gauge your 75% allowance on the deals.

If you can find a 2-4 unit by the University or by one of the higher rates school it will help you in the future with renting unit.  Dover is rated very high on education and the schools so location can come in handy with Moms & Dads with kids...

I am always open to talk REI if you have any specific questions or need more information. I plan to head up that way next month and drive over to Kittery to look at a place.

Hi Megan - I sent you a quick message as an introduction.  Hope to talk more Ohio is a great place to live and invest.  Over the last 3 years its been a hot market for most of my investors and with rates coming down its a great time!

At the 3 year mark and ready to start luckily 2024 will be a great year for REI! Reach out if you want to talk shop!

Kay,

If it's a primary home and you live in a unit you can do a cash out refinance if you have lived in it for 12 months. If its an investment property you can also do a cash out refinance in as little as 6 months with DSCR. Either way if there is enough to pull out to use for the down payment you only need 3.5%-5% for a new primary home and only 15% down for an investment SFR or 2-4 units.

To take cash out of a primary you only need to have a 620 or better and for an investment usually 640-680 can land a decent rate. Bottom line is getting the cash to buy again and refinance down the road when your Fico score is higher. One thing you can do is take out a personal loan up to $50K and pay off debts before you buy a home to lower DTI and increase credit scores.

There are some tips and tricks to ensure higher credit scores like "Not paying Off credit cards" instead pay them down to or under 30% of the credit limit.  Paying off cards can lower credit scores due to removing the "revolving" months and getting the highest point increase.

If you ever want to have a quick conversation or need more info let me know always happy to help!

Clinton,

If it's an investment property you will be capped at 75% LTV but you would have options. You could take a 5YR ARM for better pricing or an Interest Only to cash flow higher until you refinance. That cash out over $50K could go towards (2) properties in terms of down payment/closing costs. There are multiple places in TN and other states that can offer either STR or LTR with reasonable purchase prices.

If you can still cash flow on that rental and take out cash I would lean towards the cash out refinance and preserve the future equity/asset. The 1031 is not a bad idea again it would yield 2-3 properties based on down payment and closing costs. You only need 15% down for a 2-4 unit multifamily rental. At the right sale price that money can be stretched either way.

All sales and agreements are different but if there is no verbiage in the contract its really on the previous owner since it was under their ownership timeframe.  I would simply talk to your CPA or Tax accountant and file an extension until you have the best and final answer.

Worse case scenario if there is or was an error you simply file an Amended return.