All Forum Posts by: Jerry Padilla

@Blake Stewart

I would recommend a 30 year mortgage for investment properties. You will have a lower DTI than if doing a 15 year mortgage and holding long term, you will want some cash flow for repairs and in case the property goes vacant. You can always pay more towards the mortgage if you would like to.

@Ryan Weimer

That isn’t an approved finding. It is something that like Chris said it may be something that you have to make changes to the file and see what works to get it approved.

@Ryan Weimer

Was your loan approved in the system? Either through LP or DU?  
Are you sure it wasn’t denied when it went to underwriting? Maybe the lender doesn’t want the exposure? 
It is worth taking a look with another lender. 

@Odie Ayaga

Fannie & Freddie allow up to 10 conventional mortgages. Not all lenders allow this, but they are available. 

@James Davenport

It does depend on the condition of the property. If the property is in livable condition than you can do conventional financing. There are also renovation loans if you have 4 or less financed properties. If the property isn’t in livable condition, and you have no other properties that you can borrow against, hard money may be the only option. 

@Daniel Quintanilla

I wouldn’t necessarily hold that property, if it will be too hard to manage from afar. Maybe a property manager? Or maybe just using the money from the sale to purchase multiple properties nearby where you intend on living. 
A SFR investment property you can go a minimum of 15% down and a MFR investment property will require 25% down.
if you do plan to hold the property, a cash out refinance on a SFR investment property is 25% LTV and a MFR is 70% LTV.
If it is still your primary residence a SFR is an LTV of 80% and a MFR is 75% LTV. 

@Katie B.

What are your intentions with the house after you move to Alabama? 
Are you planning to rent your current primary out or sell it? 
If you are going to hold it, then a cash out refinance is a good idea. This cash can then spread out as down payments on multiple investment properties. You would get properties that need some work to force appreciation and make your money go even further, with cash out refinance son these properties.
If you are intending on selling the property in a year or two it may be worth considering a HELOC to avoid closing costs on a refinance.

@James Bradin

Your real estate agent can provide you with some comps. 
2 years is plenty of time. You will want to communicate to the appraiser initially, all the renovations that you have done as well as the rent increases. 

@Chaits J.

A seasoning period of 6 months will avoid the restrictions of your initial investment maximum - which is a Fannie Mae guideline (under delayed financing)

How is the property zoned? It is going to depend on what the tax records show it as. 

@Andrew McCotter

@Joe Villeneuve

Makes a really great point! 
As he mentioned, your money will go a lot further using your cash as down payments and acquiring more assets in the long run, when you use financing versus paying cash only for properties. You will be cash flowing more and eventually the properties will all be paid off by your tenants. 

@Chanakya J.

Yes