All Forum Posts by: Ko Kashiwagi

Hi Emmanuel,

Best to double check your lender's policy of Pre Payment penalty? Depending on the program, pre payment penalty may get triggered if you make additional principal payments within the PPP time period. For example, some will say 10% of 20% of additional principal payments made in a year will trigger this. I'd imagine you can get much better rates even if you go with a no PPP as long as you have good credit score...

Hi Sylvestor,

I would use references and reviews, see who you like the best after chatting, and compare rates & terms! Good luck!

Hi Xiang,

Dp any of your LTR have space to value add? That would be the easiest start. Add value to your current property, refinance out.

Whether you want to source your own deals or use agents/wholesalers depends on your availability. It would take a lot of your time to source your own off market pipeline.

Hi Jenny,
It's not unethical as long as you are being respectful of their time! Most lenders also don't need to pull your credit just to give you a quote.

Seconding @Jaron Walling. Having a metric of worse case scenario and best case scenario will give you a good idea of the deal. Lining up back ups (back up contractor, PM, extra reserves) won't hurt as well.

Is there room to add value? I've been seeing that 5-10 unit programs generally require 25-30% down as you found. You could possibly go private money, cash out refinance at 70-75% LTV.

Second position financing on your AL property is another option - you could likely get up t o 75% CLTV on that one.

Welcome to BP! Plenty people that should be able to help given good FICO and basic scenario. FYI if you click "Lenders" on the top tab you can search lenders/brokers

Hi Ari,

For PM, you can compare by checking reviews, getting references, reading over their contract. At the end of the day you can switch PM if you have a terrible experience. I personally would try to get a family member to manage it if that's an option.

You can get conventional financing as a business owner if you go with a non-QM or bank statement program. Usually they'd take your 12-24 month average so even if it's variable it would be okay. 

I wouldn't recommend taking private/hard money unless you have higher risk tolerance and you are ready for an active strategy (BRRRR/flip). If you prefer passive style, house hack or out of state rental makes sense. With conventional financing on a primary residence, you can put as low as 3.5-5% anyways.

LLCs are more for liability protection over tax purposes.

Hi Jennifer,

When you say floating rate, I presume you mean adjustable rate? Or are you saying the rate may be different when you lock because the pricing is floating? 

It sounds like it comes down to how much that 16k is important to you. If you are liquid enough and you prioritize cash flow, option 2 may make sense. Personally I would pick option 1 because you cash flow is already high and so a slightly lower cash flow with higher LTV has relatively minimal impact on cash flow. This is a dumbed down math, but if you PITI is $126 higher but you're getting $16,626 more, it would take a long time until you break even and you'd probably be refinanced by then.

It sounds like you are raising rent after the current tenant moves out? If that's the market rent that seems totally reasonable. I'd double check actual rents in the neighborhood with comparable and if it's in line then it doesn't sounds unreasonable...