All Forum Posts by: John Karg

Hi Derek, 

In terms of loans, there are definitely options for foreign nationals buying investment properties, though the terms are slightly more restrictive, with max LTVs between 65-70%. Depending on your situation and preference, you could make the down payment in cash or potentially leverage your current condo to get those funds. Feel free to reach out if you'd like to go over your options in more detail!

John

Hi Alexander,

I highly recommend to take advantage of the benefits that come with an owner occupied loan. For example, buying a 4-plex as an owner occupant can be done with 5% down, but buying the same 4-plex as an investment property requires 25% down and will have a much higher interest rate. Therefore I would try to use this advantage to get the biggest 2-4 unit property you can afford, living in one unit and renting the others. After a year, you are free to move out and purchase another property to live in long-term if you'd like, and you can keep the original loan in place. 

Feel free to reach out if you have any questions! 

John

Hi William,

From spending a week there once, there is a vibrant area around FSU, with the rest of the city being quite rural. It offers a lower entry point than most of Florida, so I think it's a decent option. I do have a good realtor contact up there--feel free to reach out and I can connect you. 

Hi Rick, glad to see you are entering the real estate community! Florida is a great place to invest in my opinion. As you mentioned, buying in cash and refinancing later is an option and would work in certain areas. Doing 50-70% financing would give you a lot more capital to purchase with and would still give you some cash flow until you refinance. I'm always available if you have any questions! 

John

Quote from @Ashton Fry:

@John Karg Thanks for the response. I have looked into convential and hard money options but dont have that downpayment on hand. I could possibly pull a HELOC on one of my properties that I have about 200K in equity, but I wasnt sure if that was best option.

OK got it. Yes hard money will give you the most of any option, typically up to a max of 90% of the purchase price and 100% of the rehab cost, the total of which is limited to a maximum of 75% of the After Repair Value (ARV).

However if that's not enough on it's own, a HELOC in combination could be a good option--I'm doing one right now for someone in a very similar situation actually. They can go up to 50% DTI and 90% LTV, closing costs are very minimal, and you only pay interest on the amount you have drawn out at any time. Feel free to reach out if you have any questions, I'd be happy to talk through the options with you. 

John

Hi Ashton,

It just depends on how much cash you have to put towards the purchase and rehab. Conventional will give you the best rate and no PPP, but requires 25% down and won't fund the rehab. Hard money will give you more cash to work with but has higher rates. A DSCR loan could go up to 80% LTV but has high rates unless you accept a PPP.

Feel free to reach out if you want to talk it through in more detail, and we might be able to find a good option. 

John

Hi Travis,

As Kenneth mentioned, executing a successful BRRR is not as easy as it used to be. I personally think househacking is the best strategy for a first time buyer. You can purchase a 2-4 unit property with only 5% down using a conventional loan (or 3.5% down with FHA) by living in one unit and renting the others, and get a better interest rate than on an investment loan. Feel free to reach out if you have any questions!

John

Hi Nadie,

You've gotten some excellent advice here already--I would also add that most lenders have a minimum loan amount of $100k, so that could make it hard to finance as well.

John

Looks great Gina! 

Welcome Steven! I'm down in Palm Beach and am always available to answer any questions.