All Forum Posts by: Jerry Padilla

@Courtney Nero

Did you talk to the town to ensure they will allow you to convert it? That is where I would start. 

@Edwin C. Natal

FHA and conventional are not intended to flip properties and sell. Hard money or private money is your best bet with these options. If your intention is to remodel them and eventually rent it out after a year, then yes you can use traditional financing or renovation loans.

@Michael Veloso

You mentioned - Looking to do this right from the beginning......

Doing this right would be getting a conventional mortgage and putting down the 25% required for a MFR.

How much will you be loosing in potential rental income by leaving a unit or half the house vacant for a year, just to save on a down payment? Not to mention this route will also require upfront mortgage insurance to be paid as well and mortgage insurance that stays for the life of the loan. You are better off not committing mortgage fraud and using the rental income to save up for a down payment on the next purchase.

@Brian Brusich

How long have you owned the property?

Did you pay cash for the property?

You can cash out refinance based on appraised value after 6 months - and start the process sooner than 6 months - just close on the loan after the 6 month mark. A SFR investment property will get you an LTV of 75% and a MFR 70% LTV.

If you paid cash for the property, you could cash out sooner with delayed financing. It would still go according to appraised value but you would be limited to a max of your initial purchase price plus closing costs.

@Copeland Duhon

Chris made a great point!

Also I just want to add, if you are planning to do renovations, there is a FHA 203k loan as an option as well. This way you could finance the renovations into the loan and have cash for a future investment purchase.

@Kathy L.

So as I am reading it, you are currently purchasing SFR investment properties? Multi-family property isn't a huge difference on the Financing side. You will be required to put down 25% with conventional versus 15% with a SFR.

@John Hickey

Excellent advice! That is why I am hesitant to suggest credit cards with 0% interest. They can be great, but hurt, just as you mentioned. I hope all is well with you!

@Axel Norvell

The amount of tenants and how it is rented won't affect the rate or fee's. 

@Account Closed

The portfolio product that I am aware of requires one year seasoning and has an LTV of 75%.

@Henry Wolfe

What about personal loans, or home improvement loans?