All Forum Posts by: Jason Wray

Vaibhav,

If your looking for some good data and tips for the CA or OR states I would reach out to @AJ Wong@AJ Wong

Ian,

Not sure if you know but you cannot order your own appraisal when purchasing a home or refinancing. The bank or lender must use an "AMC Company" by law as a middle man because of the Dodd/Frank rules requiring no contact between the appraiser, buyer or the loan officer before, during or after the transaction.

If you want to refinance you can talk to a Banker or loan officer and they can do an AVM for you to check value but an appraisal will be required in most cases if the LTV is above 70% LTV. I have seen many cases where we do an AVM as a service to the owner and the appraisal comes in less. Appraisers are a dying breed when it comes to getting Max value on your home most of them are afraid to go over and above due to avoid being red flagged or challenged on value/comps.

Serena,

You can do a refinance and transition the the property from primary to intended use "investment". If you are the the 12 month mark you can see if you can take cash out based on the LTV Max 75% or just a simple refinance. Rates have been coming down so it might work out in your favor.

In order to convert to investment rental you will need to be at a minimum of 85% LTV (No cash out).

Kenji,

First I would advise if you can afford 15% down buy it as an investment if you do not think you can occupy it for at least 6 months. The bank/lender will question why you are buying out of state if you work in NY. It's not a deal killer if there is a valid reason but it is a Red flag that the underwriter will require a LOE/ - letter or Explanation.

I mention 6 months because if you can occupy the home for 6 months you can refinance and transition the property into a full time investment rental if there is 15% equity. So to explain if you buy the home for 5-10% down and it has either walk in equity or you renovate and its value increases. You can refinance it in 6 months and transition it from primary home to intended use investment rental.

This will save you the headache of having to deal with an "Occupancy Fraud" claim by the bank. Although its not common a bank or PMI company can send out a "Door knocker" who's primary job is to verify primary home occupancy.

Dylan,

You only need to put 15% down on a 2-4 unit investment that other 5% could go to towards the roof to avoid more cash out of pocket.

As far as the rents they seem a little low I would think about some renovations and talk to rents about rents going up slightly due to renovations. Can always upgrade a few appliances to make it make more sense to the renters.

If you live in the home you can rent out rooms it’s called "Boarder Income" it’s not the same as if you buy the property and use it as a rental while "Not Occupying" the home. You can buy the house, rent out rooms claim it on your taxes (or don’t) and refinance the home down the road to transition it into a Fannie or Freddie loan as a investment.

Claiming the border income will increase your income that can be used the following year to help DTI. You need to make sure you show 12 months cancelled checks or bank statements to show payment received. Do not take cash record it to use it and it will help you in the long run. Also Zelle and CashApp works if you make sure they state payment as "Rents". You would need a print out of all 12 payments though so checks or wire transfers are best.

Yes, No issues so long as it is a primary home you are buying or already own.

Jay,

Do not let a lower rate hold you hostage from buying more real estate and making more passive income. Mortgage rates have been dropping back down since December and they will continue to trend down this year. You may not see a 2.70% come back for some time or ever but you will see 4's and 5's come back. That being said I would take out enough cash that will not stretch you out beyond your means.

Take that cash and focus on cash flow and properties where you can add value or renovate and borrow off the future ARV. Keep in mind as you borrower money and buy more real estate it will return the cash through future equity to borrow and pay off previous debt. It will also offer you a passive income through the rents of the property to help pay the debts off/down.

Might also be a good idea to look at a few other states like Oregon Coast great STR/LTR opportunities. You also have Indiana and Ohio where you can get a good house at a reasonable price point.

You will be capped at 75% LTV but yes its an every day loan. You can go DSCR or conventional high balance/Jumbo. Luckily rates have been dropping and were down today again.

Illyas,

You should reach out to @Lucia Rushton she is a Great agent in DFW and can set you up with some 2-4 unit options.