All Forum Posts by: Kate Nixon Taylor

Hi Farooq, 

If you want to use your VA entitlement, you would need to owner occupy the property for 12 months typically (there are circumstances where you could rent it sooner).

In terms of the investment money that is tax free - do you mean money in a 401k? Buying real estate with retirement accounts is a lot more complicated. It works for some people, but it can remove some of the tax benefits that real estate can offer. 

I would recommend house hacking, so buying a primary residence and renting parts of it out, then when you move out, renting it fully out.

Let's connect and stay in touch. I am with The One Brokerage and can help with financing strategy. It might be helpful to fill out an application and we can look at what your options are. 

Cheers, Kate

Hi Orlando,

I am curious about your focus on FHA for financing. I bought my first investment as a house hack and used a conventional loan. You can put down 3% with conventional depending on your credit score. As a loan officer, I would recommend using conventional if you can upfront and avoiding the cost to refinance at 12 months time. The closing costs are the same for the most part. With FHA, you will have more closing costs. What was the thought process with refinancing at 12 months? You will build less than 1% equity in the first year, so a refinance would only make sense if there was a tangible benefit.

Once you occupy the property for a year with FHA or conventional loans, you can move out and fully rent the property without refinancing into a different loan type. Thats the benefit to house hacking. Your cash on cash return is higher since you are leaving less cash in the deal.

If you refi into a conventional loan after a year, then you would need to owner occupy under that loan unless you did a conventional investment loan which will require you to put a lot more down. 

I am happy to look at an application for you. If you need help with your credit, we can figure out how to get your score up so you qualify for the best products for your situation. I'd love to understand your goals better and strategize with you.

Lets connect! Cheers, Kate

Hi Danielle,

I see that you decided to sell, which I think is smart. I manage a rental long-distance and its a lot. I cash flow beautifully on it, so its a great hold. Since you want to get into investing, it would be smart to roll it into a property close to where you will be living that you can easily work on, build a network and team, and place tenants.

Let's connect! I would love to be a resource for you on lending strategy as you look at deals. 

Cheers, Kate

Hi Ken,

I'm with The One Brokerage and happy to run this scenario by those lenders for you. Let's connect!

Cheers, Kate

Hi Darin, I am with The One Brokerage, and we have a lot of hard money lenders that we work with. What are you looking for exactly? Let's connect and see if I can help. Cheers, Kate

Hi Morgan,

It sounds like it makes sense right now to stick with the conventional loan. In the future, when your DTI doesn't qualify, thats when the DSCR loan becomes super useful! Definitely ask the lender you work with if they are okay with moving the property into an LLC. When you have a larger portfolio down the line, you will probably want to restructure ownership of the properties and you can always refinance then into DSCR loans.

I'd love to connect and stay in touch! You're welcome to reach out anytime.

Cheers, Kate

Hi Abram, Lets connect and stay in touch. I am happy to talk anytime and discuss lending strategies as deals come up. Cheers! Kate

@KC Ushijima Would you ever recommend his mother create a trust, quit claim the property into a trust and then make him owner of the trust? Would that only be a tool when transferring property as an estate after you die?

Hi Tristan, I live in the Triangle and know someone locally who could help you with this! I would love to connect and can send you his info. I also have an incredible contact for credit repair if you are interested in getting some guidance around building that. She can help people increase their score in a matter of months. I have so many contacts in this area and would be happy to put you in touch. Lets talk! Cheers, Kate

Hi Jacob,

It sounds like you have what you need to get started! You can only learn so much by reading and listening to podcasts. It's smart to start building equity as soon as you can. Get out there and network! Build a team over time and make sure you have all the people you could need for your property. I am with the One Brokerage and can help you figure out the financing side of things. Lets connect! Cheers!