All Forum Posts by: Keira Hamilton

It's a good question! It really depends on what you're currently paying for rent, what you'd be paying for an owner-occupied SFH, and what you'd be paying/netting on an investment property. Once you have an idea on the numbers for all three options, I think you'll have a better sense for how to move forward. There are pros and cons to every decision, and what's the right deal for someone else might not be the right deal for you, it just depends on your priorities. For example, my husband and I are house hacking right now (we live in one unit and rent the other three out). Our unit is fairly small and it's in a neighborhood we don't see ourselves in for forever, but it's worth it for us as a long term investment. Other people may not want to live in 700sf, or may not like sharing a backyard with their tenants.

Given that you're looking to make an investment and are also interested in getting out of renting, house hacking could be a great move. Feel free to DM me if you want to chat further!

Hey Ashwin! Your capital is going to go further in certain markets. There are areas where you only need $30k to close on a property. Of course, it still takes time to save up that capital, but it's a relatively small amount as far as real estate investments go. I would recommend researching markets that could be compatible with the current capital you have, or with what you expect to save up in the next 6 months.

Hi John! For a non-owner occupied investment property, you're probably looking at 25-30% down plus closing costs. It sounds like you want to do some repairs? What level of rehab are you thinking? I work with lenders who will finance 100% of the rehab, not to exceed 65% of the ARV. Keep in mind that if you're doing rehab, the terms you'll be able to get depend on your level of experience and the amount of rehab being done. Investors who have done projects in the last 3 years will get better terms than those who haven't. Not to say you won't be able to get your foot in the door if this is your first one, but look for properties that need only minor to medium level work.

Hey Ian! I don't know that one option is necessarily better than the other, it just depends on which fits best with your long term plan and your current resources. With an owner occupied property you're likely going to get better loan terms and potentially have to put less down. Keep in mind that if you put down less than 20% you'll need to pay PMI, but it might end up being worth it to you if the goal is to preserve capital for your next deal. You'll also need to meet the occupancy requirement, which is usually one year.

If you're looking to make some aggressive moves, I don't think purchasing a SFH just for yourself to live in is going to get you the greatest gains. House hacking could be a great option because it would allow you to qualify for owner-occupied financing but still collect rents to help pay the mortgage.

Lenders don't typically finance a purchase at 100%, unless you have a strong pre-existing relationship as others have mentioned. You could get up to 100% of the rehab costs financed, but the purchase is likely to be at least 25% down. 

What's the purchase price of the home and how much are you expecting to put in for rehab?

I use Avail for lease templates and to post my listings. They also have a payment feature and I think a work order system, but I don't use those. I only have 3 units so I just have my tenants pay/contact me directly, but could be useful for some people.

Hey @Clark Hsu! Can you clarify what you're looking to do here? It sounds like there are two separate projects: starting a care facility and purchasing an investment property. Or are these connected?

You mentioned starting a facility from the ground up. Would you be willing to purchase an existing instead? What amount of capital are you planning to devote to this endeavor?

@Benji Halpern I would definitely recommend getting connected with a realtor in Idaho who can help you better understand the market. A good realtor will be able to explain sales trends and suggest the best areas for a rental.

Since it sounds like this property is going to be non-owner occupied, you're probably looking at 20-25% down. Keep in mind you'll need some capital for closing and lenders also like to see some reserves left over.

A DSCR loan would be a great option for you, so finding a property with strong cashflow or potential cashflow will be key.

Do you also have other income? For primary residences, your DTI (debt to income) is very important. So even if a lender was willing to consider your rental income and even if it covered the first mortgage, they would still need to see other sources of income to qualify you for the second mortgage.

If income becomes a prohibitive factor here, you could explore non-owner occupied opportunities as those wouldn't require proof of personal income.

Hey Jonathan. Lenders typically aren't going to allow you to use a loan as down payment for another loan. I'm not quite sure what you meant by "hard money loan" as people can use that term differently, but even if say you were getting money from a family member for a down payment, the lender would likely need documentation confirming the money was a gift and not a loan as they want to make sure you're not over leveraged.

How much money do you have for a down payment? Perhaps you could just purchase one of the properties you mentioned?