All Forum Posts by: Kyle Deutschmann

Quote from @Jason Sung:

I bought a duplex for house hacking with FHA loan with 3.5% down this year. What if I want to move to another property next year for house hacking again? Could I use FHA loan again? From my understanding, you cannot have two FHA loan at the same time.

Do I need to refinance the FHA loan with conventional loan first before buying another property with FHA loan next year?

Hey Jason, as others have mentioned that will be difficult but not impossible. You would likely need to refinance that property into a conventional loan first unless you had a ‘life changing' circumstance as mentioned above. Or alternatively, you could consider using a 5% down conventional loan next year to purchase a single family with an ADU/in-law suite that you could rent out. Similar to a duplex in terms of having a ‘second unit', but since it's technically a single family you can still do a low down payment conventional mortgage without having to refinance your existing property.

Quote from @Holly Harvey:

Hello all! I'm just beginning to learn about real estate investing and will be moving to Columbia, MD within the next two months. My partner and I will be closing on our first home, hopefully, by the end of the month. I'm looking for a buy and hold investment property to generate monthly income to offset the concerningly high mortgage payment (thank you interest rates). I don't have much in savings so I'm trying to utilize one of the strategies in Brandon's book "Investing in Real Estate with No 9and Low) Money Down." I thought about looking in Baltimore for cheaper options, but per my research, Baltimore's yoy population is decreasing and I'm weary about finding tenants. If there are any experienced folks who have any advice on where to look to get started, it'd be much appreciated. 

Hey Holly, welcome to MD! I grew up in Columbia and am pretty well connected in both the Baltimore and DC metro areas. Would be happy to chat sometime or introduce you to some ‘investor friendly’ agents in the area to help with searching for an investment property if you’d like some help still.

Quote from @Thomas Cuddihy:

Hi, all! My name is Thomas and I am at the VERY beginning of my real estate investing journey. Bigger Pockets has helped my confidence to get started, so I'm very excited to be here. 

I currently reside in Montgomery County, Maryland, which is a fairly expensive market to buy/sell real estate in. I was having a conversation with a friend who invests in real estate, and I told him my concerns about having enough cash for a investment property. 15%-20% down to secure traditional financing is a lot of dough, but my friend suggested that I apply for a loan as a primary resident, and then rent it out anyway. I feel like that's a "too good to be true" scenario, but I'm not sure if that's something folks here have done before.

So there's my question: is it possible to apply for a loan as the primary resident, and then rent out the property? Is there a time limit before I can do that? Or, better yet, am I thinking about this all wrong? 

 Any help is much appreciated-- thank you, all!

Hey Thomas, welcome to BP! As others have mentioned, that would be considered mortgage fraud so I would not personally suggest doing that… That being said, as long as you live in the property for at least a year as your primary residence, there’s nothing wrong with getting a housemate while living there to help offset your mortgage/housing costs, and then you could move out after a year and turn it into a rental at that point. Most owner occupied mortgages only require you to live there for at least a year. 

Quote from @Leland S.:

I'd like to find a direct lender as to avoid the crazy broker fee's I'm seeing of 3%. Please refer me to someone that can lend on the following:

1) Refi 1.6M. If possible, add some cash, LTV of ~50%
2) Income projected 25k/mo average (mixed long/short term)
3) LLC owned currently - but I'd be OK not doing that if that's what it takes. Credit score 780+.
4) Property is 4-plex townhomes but zoned as a single parcel. 

Hey Leland, I used to live in Nashville and am licensed in TN still. We have options for refinancing both in your own name or an LLC. I'd be happy to chat if you're still looking for a second opinion.

Quote from @Mitch Larrivee:

Looking at protecting myself as much as possible, I want to buy (hard money most likely) with an LLC. When you go to refi out, do you normally xfer ownership to your name so you can get a conv. loan? Or do you normally look at other methods, like commercial loans, that allow for a business to own?

Are you buying with hard money because you plan to buy a property to rehab? If not/if the property is in good enough condition to pass a conventional appraisal then you could skip the higher interest hard money loan and can buy or refinance in either your own name or in an LLC. There are both residential and commercial lending options available where you can have the title in an LLC but the rates, terms and underwriting/processing turn times will vary. I'd recommend speaking to a reputable lender/mortgage broker that can provide both options so you can compare and educate yourself on what option is best for your situation.

Alternatively if it’s your first investment property, you could also consider just getting an umbrella insurance policy and keeping the property in your own name to help protect yourself against liability. I’d suggest talking to both a qualified attorney and reputable insurance broker to learn the cost/benefit of each option and compare that to the difference in rates for financing a property in your own name vs. in an LLC.

Quote from @Elizabeth Munene:

Current BRRRR

deal. I get caught up in the

refinance part. I have found that most local banks in the Prince Georges County, MD

area are not interested in this type of deal. Anyone out there have any

leads for property refinance - cash out? Currently have 1 single

family home in Fort Washington that have been rehabbed and currently screening tenants. Any

help greatly appreciated!

 Hey Elizabeth, I'm local to the area and also own a property in PG County. Do you know why they're not able to refi the property? They may want to see that it's rented when they do the appraisal. Happy to chat if you'd like a second opinion from someone local. 

Quote from @James E Fraley Jr:

Pros and Cons with this type of financing for investment cash out refi

I agree with most others on this page - DSCR likely will be a lot less document heavy. I've found that bank statement loans might be .25-.5% lower, or similar rate but less points, so if you really want to get a slightly lower rate then perhaps it's worth pursuing, but just be prepared for a lot of questions about your bank transactions for the last 12 or 24 months.

Quote from @Jack Seiden:

Quote from @Naphese G.:

Hello All,

New to BP, currently active duty military and looking to start REI through VA loan house hacking. I've been reading through the forums and everyone's post have been pretty inspiring.

I will be taking the upcoming Rookie Bootcamp and I'm excited to learn from the community. 

Best wishes to all and much success!

I 2nd the Maryland REI social idea! Reach out if you need anything and best of luck.

Welcome to BP! I also recommend coming out to this monthly meetup in Laurel. Very casual networking with other local investors in the area and there are usually some agents, flippers, etc. that attend. 

Quote from @Jack Lee:

Quote from @Thom MacFarlane:

I concur with @Nathan Gesner 

I'm myself look at the loan aspect of being in an LLC. One problem holding title in an LLC is that you can't get the best loan programs which are Fannie Mae & Freddie Mac. Both Fannie & Freddie state they "lend to natural persons only and title is required to be in the name of the individual client." Thus no LLC, Corp, partnerships or syndications.

A lender may allow you to switch from an LLC to an individual in order to refinance a property if you prove the individuals on the loan and in the LLC are one of the same.

That's exactly what I was considering heavily, moving into LLC and then moving out of LLC to my name when it's time to refinance. After the refinancing, I'll have to move into LLC again. That said, I feel comfortable moving to LLC if my initial interest rate was 3-4% haha. Unfortunately that's not the case!

There are lenders that will let you refinance even with the title in an LLC for 1-4 unit properties. Earlier this year the rates were pretty comparable to conventional Fannie/Freddie. Rates seem to be a bit higher currently for most lenders allowing title to be held in an LLC, but it would save you from having to transfer the title back and forth when you refinance.

Quote from @Stephen Ryan:

Does anyone know where you can get a loan for an Airbnb if you haven’t filed your taxes?

Sounds like you're looking for a DSCR type of loan. What state are you looking to buy in?