All Forum Posts by: Krystl Matsunaga

Hi everyone. Thank you so much for your responses. Here is a little more information/background. I live on Oahu with my husband and will be moving to Kona (another island) for school. We own a home here and have a mortgage on it, and my husband will live in our current home while I go to school. We are planning on buying a place for me to stay while in school (again on another island), and hopefully rent out some rooms to some of my classmates to help with the mortgage (house hack). Our income will reduce in half as I will not be able to work for 2 years, but my husband will continue to work. We are able to qualify for $800k as owner-occupied or 2nd home, but won't be able to make it to $900k unless it is an investment property. I was asking to see (if we buy below $800k), what would be more beneficial in all aspects, owner-occupied vs. 2nd home vs. investment property? But if we buy a property above $800k, our DTI will require us to only purchase it as an investment property. Also, with more than $800k, we would have to pull from our HELOC in order to fund the down payment. I understand that doesn't make sense for more debt, but if it makes out in tax advantages or other reasons, then it would make sense. Hopefully this gives you a bigger picture of my situation. Thank you.

Hi everyone. I am just starting out with my 1st rental property in Hawaii but am wondering which one is more beneficial: 2nd home that's a house hack vs. investment property. Per the lender I'm using right now, she said I can pre-qualify for more purchase price power with an investment property mortgage than a 2nd home mortgage. I would put 10% down with the 2nd home vs. 20% with the investment property, but would have to use a HELOC to fund the extra 10% down payment, increasing my DTI. She also mentioned that Freddie/Fannie is changing things for 2nd homes, so it might be more beneficial to do an investment loan. What are the pros and cons to each mortgage, as well as the tax advantages/disadvantages for both? Any other information would be greatly appreciated!! Thank you!