All Forum Posts by: Kal Wol

After pushed out from the competition, I am going to put an offer on distressed property in the hot area. The property has been sitting in the market for a while and it needs a lot of renovation - the internal of house needs all things to be changed. A rough estimate is around 80K.

The first question I have is, how much money shall be asked for BRRR strategy assuming the house is 100K asking price and it will require around 80K for rehab

Second is how do you estimate the rehab amount roughly. The above one is my own guestimate based on some generic research. The house needs pretty much all work inside the house. And not sure how long it will take to refinance and get the money as I am going to have it on conventional loan.

Thank you all.

0 Votes

Germantown, Maryland

Quote from @Devin Peterson:

Quote from @Kal Wol:

Hello awesome BPs

I have got my pre-approval and I am qualified for the higher amount. My DTI is small that the lender has said I don't have to provide the rental information on my current house.

Apologies if the following question is silly :)

I am wondering if I can buy two smaller houses than one big house and if this is even possible at all. The approved amount is good enough for two townhouses basically. So wondering if it is possible or not.

This really depends on the main purpose of the other purchases. Are you trying to buy other properties as investments? If so, you can use the conventional loan if you are house hacking.. (not sure that's just what it sounds like) but - you can use a DSCR loan to purchase other rentals. Minimum loan amount for a single family property is $75,000. I would still be transparent with the lender that you're doing more than one loan at once. I've been on the other side of that conversation, not something lenders want to hear because it can jeopardize relationships on the buyer and broker side.

Thanks @Devin Peterson disclosing the information is not a problem and I have done for one of the lender I approached and, you are right, he was not happy about it, at least for his firm.

But are you referring is possible to have the conventional loan if I am going to house hack on one of it? I mean is that still possible to have some 10% or so down for two if I am going to live in one of the house is?

And sorry, I didn't got the part you mentioned about 75k, what is it correspond to? Is that for any kind of house? Sorry again if I miss it while it is very clear

0 Votes

Germantown, Maryland

Quote from @Dave Skow:

@Kal Wol- yes - make sure your lender is aware of this plan and get two files set up and the pre approval updated for this two property plan

Thanks @Dave Skow

0 Votes

Germantown, Maryland

Quote from @Bill B.:

Sorry, no. I found the two houses a week apart from two different realtors bringing them to me. I hadn’t intended to buy more than one property but the lender I had set up for the first property was happy to do a second loan with almost no additional work on their part. All loans and all properties are solely in my name, no LLCs. I just use a large umbrella policy to save time, money and hassles.

Thanks a lot @Bill B. I will be following that route as well.

1 Vote

Germantown, Maryland

Quote from @Alecia Loveless:

@Kal Wol If you end up doing this, buying two at the same or close to the same time, my suggestion is to be sure to create different email mailboxes for the different loans.

I closed on two loans within 10 days of each other 2 years ago and it got confusing keeping the emails separate until I separated the messages in my inbox.

Thanks @Alecia Loveless

0 Votes

Germantown, Maryland

Quote from @Bill B.:

As long as the lender knows, and you qualify, this is a non-issue. It may even save you some money or at least hassle as you reduce underwriting document requests. I purchased two separate houses from two different realtors with the same lender I found about a week apart.

hey @Bill B. I got a little bit confused when you say "I found about a week apart". In this case, you didn't know your lenders? they don't do any paperwork with you?

Probably this is more interesting as I think it might be a loan to LLC? I would like to get some information on that please? how can you get an LLC loan? I haven't formed yet and I had asked earlier about it on another post, but it is not very clear for me yet.

0 Votes

Germantown, Maryland

A follow up question on this, is this still applicable for the conventional loan where I will be putting 5-10% or is this allowed only for the one with 20-30% down?

0 Votes

Germantown, Maryland

Thank you all for the great responses.

0 Votes

Germantown, Maryland

Hello awesome BPs

I have got my pre-approval and I am qualified for the higher amount. My DTI is small that the lender has said I don't have to provide the rental information on my current house.

Apologies if the following question is silly :)

0 Votes

Germantown, Maryland

Thanks a lot @Jason Wray and @Ethan Gidcumb- This is valuable information. I will reach out for further information as some of the products listed above are new for me.

1 Vote

Germantown, Maryland

All Forum Posts by: Kal Wol

Kal Wol has started 15 posts and replied 67 times.

Post: How much is good asking price for BRRRR method

Post: Can you apply for two mortgages at the same time?

Post: Can you apply for two mortgages at the same time?

Post: Can you apply for two mortgages at the same time?

Post: Can you apply for two mortgages at the same time?

Post: Can you apply for two mortgages at the same time?

Post: Can you apply for two mortgages at the same time?

Post: Can you apply for two mortgages at the same time?

Post: Can you apply for two mortgages at the same time?

Post: Do banks lend conventional loan for LLC?