All Forum Posts by: Junior Shay

You are going to need to put 20% down then.  I think you will have a tough time making this happen.

Is this for a SFH you will live in? I think the short answer is, no. 60k income is not sufficient for that sized home. Even if the bank will loan you the money don't take it. You can't afford it.

FICO scores do not drive mortgage approvals, incomes do. DTI specifically.

In this case, unfortunately, the answer would be "not even close" at that price point.  

People on these forums act like they amassed this great deal of wealth through real estate, and that may very well have been their "steps 1 through 10" where they've been focused for the last 6 or 12 years, but for the most part their "step 0," back many moons ago, was solid day-job income. I know, because I see all their tax paperwork and paystubs, I'm there from when they first purchased that first house to live in, to when they are at step 5 with yet another fourplex, to when they're done with me because I only do residential 1-4 unit real estate and they're doing 100 unit apartment syndications. The forums and podcasts and articles start at "step 1" or "step 2" because "step 0" isn't real estate related, but that doesn't mean there wasn't a "step 0."

I don't mean this in any negative sense, this is intended as productive advice you can use, but I'd start with "step 0" if that's the price point you are targeting. Once you are established capital just gets thrown at you, but when you are first starting off a lot of things end up centered around your personal income and capital. 

@Junior Shay  I have a number of commercial loans, and yes, you absolutely will need insurance.  It shouldn't be too much, I pay about $2500/yr for my commercial properties.   20% and good credit is a starting point.  As other mentioned, 6 months reserves are also important.  Remember a commercial appraisal is more, about $1500, and that will be out of pocket on your side.

Good luck!

How's your credit, @Junior Shay? It matters, but not as much. What kind of down payment and reserves do you have? A bank will want to see 20-25% down and 6 months reserves. 

The nice part about a commercial loan is that the lender is more interested in the deal and experience of the operator. The deal needs a good DSCR (1.2 or better, in most cases). If you don't have experience, they may not go for it. Consider partnering up with someone with a track record.

@Junior Shay excited for you to get started! What are you thinking as a first step? Have you tackled the savings part of things or hoping to utilize VA loans?