All Forum Posts by: Jerry Padilla

@Justin C. a multi-family FHA owner occupied us a great way to get your feet wet and start investing.

@Chris Schlamp

You can get up to ten mortgages in each individual name - you and your spouse or ten together.

@Crystal Lee 

If you can't afford the house on your own, how will you be able to afford it with you sister on the mortgage? Are you planning to rent out rooms or something along those lines?

Your sister can do a cash out mortgage on her investment property for a down payment for this purchase. 

@David Avetisyan 

Here is a blog I wrote on cash reserves. 

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

Cash Reserves Required For Other Properties Owned by Investor;

• If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
• If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

@Anthony Kondor

Yes you can refinance a private mortgage and cash out if the equity is there. Your credit score has to be a minimum of 620 if this is mortgage 1-4. You can cash out after 6 months based on appraised value. You can not cash out prior to 6 months if you get a private mortgage - as any mortgage disqualifies you from the delayed financing exception. 

@Chue Xiong

I am confused by your statement that you have a really good credit rating, but not enough of a credit rating? Maybe I am reading it wrong? You only need a credit score of a 600 to get qualified for an FHA mortgage with no minimum trade lines. Have you had a job for the past two years? You may just need to try another lender.

@Kris Scott How many units are you looking to purchase? 1-4 is still considered residential financing and will be the easiest way to obtain financing when starting out. As long as you purchase the property as an investment you are not required to live in the property. If you purchase the property as a primary- typically you have to live in the property one year. 

@Adam Hedio 

I always recommend starting out with getting your financing in order. Are you planning to owner occupy a multi-family and live in one unit - you can get an FHA mortgage with only 3.5% down this way. Are you planning on purchasing a SFR or a MFR?

Here is some information on conventional financing; 

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

@Jasmine C. is great in Memphis. I put my recommendation in for him as well as several others in this post! 

Turnkey-reviews.com has references for him as well. Good luck! 

@Charles Worth Thank you for the tag! 

@Leo B.

If you want to pull money out based on after repair value - you have to wait 6 months from closing to cash out. Investors use this strategy all the time. This can only be do e with 1-4 mortgages. 

Lenders will cash out right away. It is called delayed financing and requires that you pay cash for the property and "cash out" prior to 6 months. This can be done on up to the ten conventional mortgages. The maximum that you can take out of the property - given the LTV is met, is purchase price plus closing costs, no rehab costs will be financed.

You can "cash out" on as many properties that you qualify for. You are able to use the leased rental amount or potential market rent at 75% as a 25% vacancy rate is used if the property is not reflected on tax returns. Once a property is reflected on your tax returns, the net income is used. 

Yes, on LTV's changing between SFR and MFR and mortgages 1-4 and mortgages 5-10. If you see my links below there is more information on these LTV's.

I think I answered all your questions! 

And 

@Brandon Turner 

You can still do cash out financing with 6 months seasoning, based on ARV.

Here is a link on cash out financing after 6 months; 

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

Here is a link on delayed financing, prior to 6 months - and requires paying cash for the property. 

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