All Forum Posts by: Jerry Padilla

Thank you! 

@Jeremy Pace

@Dennis Standers

My recommendation is to just be careful with HELOC as the rates are adjustable and rates will go up. It can get tricky down the road with 2 mortgage payments, on one property. It is a great idea to use this cash to invest as a down payment into another property.

@Conway Churaman 

I think you are getting a little ahead of yourself with paying an inspector. I think you first need to see what you can get pre-qualified for first and how much, ensuring you have the money needed for closing and down payment. If you can't purchase this high..... You are wasting your time and money. After the pre-qualification, I would contact an agent..... Not necessarily the one listing the house..... As they are dedicated to the seller, but in the same aspect they want both sides of the commission so it may work to your benefit. You need an agent to run you are market analysis it recently sold properties. You need to compare this house to the recently sold houses and houses currently on the market near you. You can't just keep a closed mind and emotional attachment to this house as that is where people get burned in to money pits. Not every house is worth investing into. You are doing this to build equity and cash flow right? Look at a couple of other houses around you, make the agent do some work for that commission and it gives you more of a backing for your offer if you are still set I this house. You need to prove to your landlord with verification of a market analysis and recent viewings of other properties why this house isn't worth what he asking. Then once you negotiate a price you bring in the inspector and on e again you negotiate issues with the house. He should be taking care if the bed bugs immediately.... Before they spread to the other units! 

@Charles Worth and @James Wheelock  you can get up to ten mortgages backed by Fannie Mae as long as the lender is able to strictly follow just these guidelines. After that you would have to find a portfolio lender that takes on more than 10 mortgages or you would have to go the route of commercial financing. There is the option of hard money or private lending as well. 

@Conway Churaman 

If I were you I would see what you can get pre-qualified for with a mortgage. Maybe the house is worth it.... Maybe not. I would take a look at other investment properties in the area. If you are worried about moving, it is much cheaper to purchase a moving company and then purchase a property that cash flows and doesn't have huge expenses.

@Ryan Howard 

It is a great that you are so young and ready to jump into the game at your age! You said you have 6 months on the job..... Do you have a 2 year history in the line of work that you have or did you attend college (2 years) For this line of work? Both of these count towards your two year history..... So you may even be able to purchase soon! 10k is a great savings for FHA. You can ask the seller to pay up to 6% of closing costs and out only 3.5% down keeping as much capital for the reserve requirements and repairs.

Here is a link on conventional financing, that you should hopefully find helpful for the second purchase. 

http://www.biggerpockets.com/blogs/5110/blog_posts...

@Candice Rogers 

I like to recommend doing a cash out refinance and then a HELOC after that. This way a majority of your primary residence mortgage is at a low fixed rate.if a majority if your mortgage is a an adjustable rate and rates go up a lot..... It could get you into financial trouble.

@Jay Hinrichs may be able to chime in. He is a developer as well.

@Mark Santiago

Saving up for a deposit, getting pre-qualified for a mortgage and figuring out where you want to invest is a great way to start, along with educating yourself.

@Engelo Rumora is another turnkey company that has also been mentioned in this thread. His clients seem very pleased and successful with him as well. He is great person to speak with. 

@Jeremy Pace I am so glad you find the blogs helpful! I have more to write up. I just need more time in the day!