All Forum Posts by: Jason Wray

Investors who have a 760 or better Fico only need to put 15% down and can expect a 7.50% rate with No prepays but you will pay 1 point. LLC opitions are available as well closing or quit claim. That is the typical scenario for a "Full Doc" loan.

Ryan,

Couple of things I would advise to try and help in your situation. First you need to be going through a Bank or Lender right now. Reason is you need to let the Bank/Lender order the appraisal and inspections. It's part of the required process so that the Bank/Lender can use a legal AMC company for appraisal.

Second you can absolutely buy the home all you need to do is qualify for a renovation or construction loan if the home is "Subject to" and the only way to know that is with an appraisal. You also need to get any and all GC's or Builder approved with the Bank/Lender before you start work or agree to scope of work/costs.

You can also talk to your Banker or Loan officer and see if they can pull an AVM or runs some comps for the Reno or ARV.

Zaid,

It's actually a great way to start and build your REI portfolio by getting into a 2-4 Unit. It's a step process where you can put 3.5% to 5% down on a 2-4 unit as a primary. As an investment its 15% down but usually offers a lower payment & higher cash flow. Either way if you find the right deal that allows you to buy and repair/renovate you can benefit by taking cash out on the new ARV.

The cash out allows you to pull out your initial capital and profit to buy another investment rental. The goal is the long game unless you flip the house and sell it but you have to calculate capital gains unless you buy again using a 1031 exchange. If you have good credit and good income now is the time to buy and try to hold some long term rentals. It will pay off in the long run and for retirement.

You want to examine all markets in and out of state and do not worry about your time you can find a good property manager to cover. You can also find a good handy man/woman to help you fix things if anything breaks. As with everything shop the costs and use Bigger Pockets for help.

You cannot put an FHA loan into an LLC. You can refinance it down the road into a Conventional or Portfolio loan and close or "Quit Claim" it into an LLC.

You would need to be at 85% LTV to refinance to transfer into the LLC as long as there is a tangible benefit like lower rate/payment, or cash out.

Shonda,

Mistakes will happen in life but if you have 5 properties you must have done a few things right. Now all you have to do is focus on the equity and tap into them as soon as possible to buy more doors! If the equity is not at its correct LTV you can always do some renovations to get the ARV up some.

Hunter,

Great choice to dive into the REI world since it offers some security for the future. Should you ever need any help or have questions, feel free to message me or reach out!

Steve,

Moving to Pensacola I would say check out East Hill it’s a great area and close to the beach. There are homes in your price range as well. I am here in Florida as well down in Pinellas County and just closed on a home in Old East Hill. If you want a great agent reach out to @Jessica Parker she is great and I have worked with her before on an REI.

I read you have a VA loan already did you know you can have two VA loans at the same time. You may already know but it is possible based on your entitlement. Rates are starting to come back down so you could also look into doing a refinance and convert that VA loan into a conventional loan so you can use your full entitlement. You might be able to take out some cash as well for renovations or other.

Angelo,

Best thing to do is reach out the Banker and talk to them about your goals. You will need to fill out an application and the Bank/lender will send you over a pre-approval. The pre-approval will tell you what you can afford based on credit & Income. You can also use the rents of the other units to help qualify for a higher amount.

Fairy easy process just have your basic documents ready like last 2 years W2's or 1099's if your self-employed. Most recent paystub showing year to date, driver’s license, and a copy of the account where the down payment funds will be used. You can also receive a family gift for the down payment and closing costs as well.

Blaise,

Sounds like you are getting ready to make a great move from the cold North East to Florida. There are a lot of places in Fl where you cannot go wrong. Cape Coral, Pinellas County, Citrus County and a few other places depending on where you want to be closer to Beach or City. Tampa is also not that bad if you want to be in the city which offers a great night life.

Cape Coral is more of a boating/fishing town with a lot of great prices on homes all close to the water or intercoastal. I am over in Pinellas County by the beaches and I love it compared to inner city or rural parts. I own a boat and need to be close to the water so Pinellas offers Johns Pass, Fort Desoto, and Clearwater boat ramps. Easy to get to any of the dozen beaches to hang out for the day or hope around to beach bars, resteraunts, clubs.

You also have Downtown St.Petersburg in Pinellas which is a large business district and offers a ton of upscale bars, resteraunts, New Pier, and fun night life.

Either way I would also talk to a Banker/Loan Officer to get a pre-approval or if you already have one get a second quote.  Make sure you talk about home owners insurance up front as well do not make it a last minute item to avoid the wrong company or super high annual quote.  

If you have any questions about Pinellas or other Counties message and let me know.

Jasmine,

Cape Coral is a great location and you can still find a good deal on both SFR's and 2-4 Units. If you have equity in the Miami home I would suggest pulling out some cash and buying more doors. Good news is rates are showing signs of topping out which is good news for next year. You can pull cash out now and then refinance the Miami home when rates drop.

I would not wait for the rates to drop though because property values will continue to rise in Florida. Cape Coral is growing in popularity and in a few years you will be happy you purchased. I do a lot of business in Cape Coral and Venice and this year has been a very busy year for investment property purchases. I plan on looking at some land lots down in Cape Coral soon to grab some before they are all gone or overpriced.