All Forum Posts by: Jesse Rivera

Have you received a loan estimate, or at least a closing cost worksheet? You should find your answers there. There should be little difference. Yes, a little more expensive (appraisal costs more, title fees a bit more), but other than that, should not be such a huge difference.

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Having her on the loan and title won't hurt you or help you get qualified (unless she has a significant amount of debt that will hurt your DTI). The benefit would be in estate planning, if you don't live in a community property state.

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I've purchased a few from auction, never seeing the inside.

Talk to the neighbors. They usually love to talk and may have insight on the condition of the property
Your rehab budget should include replacing all major systems, and roof (you can see condition of that). And then add another 30% for surprises. IF you still make a profit, consider moving forward
Get title insurance. Owner's policy. This is non negotiable. You need to see what other liens are on the property.
Research what it will take to get the squatters out. In some states, they are considered renters and you will need to evict. Can you do that during Covid? Your budget should include attorney costs, and holding costs for the duration

Not trying to talk you out of it, I did well with some of these properties. Just need to know what you're getting into.

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Los Angeles County, California

For 1 unit conventional investment property, you can get 15% down, but you will take a hit on interest rate, and you will need mortgage insurance (unless you pay upfront). Should not have to pay points. If a lender tells you that he can't do 15%, it an overlay.

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Originally posted by @Andy Eakes:

@Zach Gulbransen From my understanding, you can continue to use it as many times as you like, so long as you refi the initial FHA loan to a conventional loan. The only downside to FHA is that you pay mortgage insurance until you get to 20-25% equity, depending on your lender. This is why more people choose not to utilize, but for new investors looking to house hack, it's a homerun imo.

For FHA mortgages, mortgage insurance is for the life of the loan. It does not matter what the equity is. You have to refinance to conventional to get rid of the MI. There are some exceptions to this, but I rarely see them.

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Have you looked into income based repayment?

https://youtu.be/StOj41Y2WKI

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Originally posted by @Jaron Walling:

@Shyam Sundar This is a complex question but you're probably over thinking the term reserves. From an investors prospective reserves cover rental property repairs, maintenance, and vacancy. Realistically every property held in a portfolio should have ____ amount of reserves. It's dependent on the condition of the property. Some properties are old (need more) and some completely remodeled (need less). As an investor paying out of pocket for repairs or not having reserves is a dangerous idea.

From a lending prospective reserves are a safety net. Lenders want to know you have money to cover the investment should you fail. Some banks require a set amount of liquid funds for reserves but it's lender specific. My local bank won't approve additional loans for investment properties without it. Every month I stash a little more away to protect my self, the asset, and the tenants living there should something break. I'm not a risky investor. Maybe this helped answer your question.

Great answer. What he said.

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How much are you putting down?

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I don't believe in marriage so I ain't paying no engagement fee.

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All Forum Posts by: Jesse Rivera

Jesse Rivera has started 24 posts and replied 459 times.

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