All Forum Posts by: Justin Hammerle

@Tonderlera Ohaeri - I think the most important question of this strategy is what type of permanent financing will allow for that use?  The prior steps are likely the same as with conventional multi-family use.  Maybe a few lenders can add their take.

@Gavin Rein - I would say that may be correct in the short term.  But in the long term it could work out in your benefit understanding you have more control over the ceiling of your income being self-employed.  As long as you have two years of consistent income you can qualify being self-employed just the same as if you were on a w-2.

@Allan George - Agree with the sentiment here; hard to beat that ROE with a 3.6% interest rate these days.  I would continue to hold and perhaps consider refi harvesting in 3 years or so rather than selling depending on where rates stand.

@Nicholas Burch - As @Evan Polaski mentioned, I think it comes down to market desirability (demand).  The higher the demand, the more compressed cap rates are likely to be.  I don't believe desirability and stability are always necessarily the same; but in most cases to put it simply - you are paying that lower cap rate for the upside stability the market provides due to the demand.  

I'm not sure you can build a strategy around this other than recognizing it so that you don't overpay or undersell a property.

@Kyler J Sloan - Yes, it's possible but they would have second position with that lien.  You would have to find a lender willing to do a second and convince them there is enough margin there from them to take the risk.

@Jess Hammersley - If you plan to occupy for more than 1 year I would go with FHA. You do have mortgage insurance that you will have to pay with FHA but the lower rate likely offsets the total cost. Other thing to consider is strength of offer, if you are in a competitive market an offer contingent on FHA financing will seem weaker than conventional.

@Rich Anthony -  I would just bring it up with your partner and gear his comfortability with it. If your open to foregoing the commission i think its a fairly easy discussion. 

@Brandon Stone - Good Point. I would also add that you should consider the market your property sits in when deciding on the quality of the rehab. Your ROI is going to be different in an area that mostly consists of workforce housing in comparison to an area that mostly consists of luxury housing.

@Rodney Julien - Welcome to BP! I do business in Both MA and RI, I know Boston fairly well and spent a good deal of time analyzing multifamily deals around the metro.

@Michael Elkins - The tools tab has a property management section where you could look up and use lease templates for your specific state.  If you upgrade to PRO you can use most of the templates for free.