All Forum Posts by: John K.

Hi Drew, 

Down payments for a primary residence start as low as 3%, while down payments for an investment property (in any state) start at 20%. There's no way around the 20% down minimum for an investment property--creative options like the piggyback mortgage are only for primary residences. 

For this reason I would highly recommend buying a property in your area as a primary residence first, since you can get into it with a fraction of the down payment. If possible, get a 2-4 unit property where you can live in one unit and rent the others out. You can do this with a 5% down payment and the rent of the other units can be used to qualify for the mortgage. Feel free to reach out anytime as I'd be happy to explain more in detail. 

John

Hi Kim, 

I understand your hesitation, although I don't believe a repair with the pool would be something that could spiral out of control too much. The seller credit sounds reasonably--I wouldn't let it hold up the deal if you really want the home. 

John

A new lender program in Florida is offering an FHA 100% CLTV program that provides 100% financing in the form of an FHA loan at 96.5% and a second loan of up to 3.5% to cover down payment and/or closing costs. There is no borrower income cap and borrowers do not need to be first-time homebuyers in order to qualify. You are even able to use it to purchase a duplex! See details below and contact me for more info.

Hi Joey, 

The best advice I can give it to learn the average "Gross Rent Multiplier" for each neighborhood in the area. That will allow you to quickly analyze deals simply based on the purchase price and the total potential rent, without having to calculate every single cost for each property. Feel free to reach out with any questions!

John

Welcome Yusimay! It sounds like you have great experience to be able to help out your clients. I'd be happy to be a resource for any lending questions you or your clients may have--I specialize in investor loans and work with over 100 lenders that offer almost any program imaginable, including Conventional/FHA/VA/USDA, DSCR, Airbnb/Short term rental loans, HELOCs/HELOANs, Interest-only loans, and many more unique scenarios. Feel free to reach out anytime!

John     

Personally I think the returns for stocks vs real estate are in line with the risks and involvement associated with each. There is very little risk involved in holding an index fund for 10 years, and you are nearly guaranteed to get at least a ~7% return without having to do anything. An investment property bought with cash may have a cap rate between 5-7% and appreciate another 3-4%, giving a slightly higher 8-11% return. Purchasing with a mortgage can increase this return to 12-18% pretty easily. However, holding a single or multiple properties is certainly more risky and demanding than holding an index fund with several hundred companies. Therefore, while I think real estate certainly has more upside for those looking to get a higher return, it doesn't come for free, so I don't blame anybody that prefers to hold their money in the stock market. 

John

Hi Kamazja, 

Welcome to the community! Here's what I would recommend to put yourself in a position to purchase as soon as possible: 

1. Get to know the area where you want to buy--this can include looking at listings, recently sold homes and simply driving around different neighborhoods. 

2. Take care of your credit score--your interest rate will depend greatly on this. 

3. Save as much money for a down payment as possible. 

Once you feel comfortable that you know where to want to invest and you have the funds for a down payment, all you need to do is get preapproved and start working with a realtor to identify a specific property. I personally recommend the Conventional 5% down program for a 2-4 unit primary residence--this allows you to get started with very little funds and take advantage of primary residence rates while still becoming a landlord right away. 

Let me know if you have any questions, feel free to use me as a resource for any loan info!

John

Hi Brandon, 

If you're willing to liquidate the stock investments to use for a down payment, you could get around the income requirement by using a DSCR loan. Let me know if you have any questions!

John

Hi Jonathan, this looks good to me--It'd be great to have you follow up with your results in a couple months! 

John

Hi Allen, 

I would check out the following site that seems to be what you are looking for: www.travelnursehousing.com

John