All Forum Posts by: Matthew Kwan

Since this is your first property, it's better to self manage so you can learn and gain experience. However, if you are not confident with your management skills, you can always hire property management.

For your scenario, you rent out to 3 tenants (each tenants on each rooms) and they will just have to share the bathrooms. You can request those tenants to clean the bathrooms through rotations or just charge them a small cleaning fee to hire cleaning crews to clean the house 1-2x a month or you do the cleaning yourself to save up money and have extra passive income. This is called house hacking :)

@Albert Bui @Carlos Valencia

Yes you can use zillow/apartments.com/Craiglist, but the most success i have personally would be FB Market place. It can be time consuming because there are spammers/fake leads that could waste your time, but if you're willing to put in the time and filter those bad leads, the chances of you renting your place out will be high.

@Carlos Valencia @Albert Bui

You can do DSCR loans or Hard money loans, where they only focus on how well the subject property performs in terms of the rental aspects or the ARV aka after repair value. Of course, the rate can be slightly steeper than the conventional loans where it is a full document loan, where they need to qualify you based on your income.

Alternative way, is to acquire the 2nd property as an investment property with conventional, while putting 15%-25% down payment. Down payment can be higher than primary, but the good thing is that you won't need that much income to qualify because lenders can you 75% of the market rents for the units of the property. Imagine the 2nd property is a 4plex, each unit can be rented $1500/unit of 75% =$1125 x 4 units =$4500 worth of income to offset your that 2nd property.

@Albert Bui @Carlos Valencia

Of course. Any ideas/thoughts you're trying to do with the cash out refi or just do a HELOC so you can tap into that funds whenever you need instead a full draw for the cash out transaction?

@Albert Bui @Carlos Valencia

HI Pari,

There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible. Try looking into zillow/Redfin and see what your potential rents you can get near the neighborhood by filtering the bedrooms/bathrooms of the intentional property that you are planning to buy. This will allow you give a reference point on how much potential rent you can receive. (Max vacated rents - your monthly mortgage payment) = +/- net cashflow.

On the other hand, you could also look into multifamily units where you can live one of the unit and rent out the other vacant units with as little as 5% down payment. The main hurdle that many of our borrowers face are the income aspect of it, especially expensive markets like the West coast. However, it allows you to use the vacant rents of 75% market rent as an alternative income to help the borrower to qualify.

Happy to connect and assist you in your real estate investing journey. @Albert Bui @Carlos Valencia

HI Adam,

There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible. Try looking into zillow/Redfin and see what your potential rents you can get near the neighborhood by filtering the bedrooms/bathrooms of the intentional property that you are planning to buy. This will allow you give a reference point on how much potential rent you can receive. (Max vacated rents - your monthly mortgage payment) = +/- net cashflow.

On the other hand, you could also look into multifamily units where you can live one of the unit and rent out the other vacant units with as little as 5% down payment. The main hurdle that many of our borrowers face are the income aspect of it, especially expensive markets like the West coast. However, it allows you to use the vacant rents of 75% market rent as an alternative income to help the borrower to qualify.

Happy to connect and assist you in your real estate investing journey. @Albert Bui @Carlos Valencia

HI Tomas, 

It depends the nature of your job. Can you work remotely or your job requires intense travelling. As long you can provide a reasonable story and supporting docs to persuade the underwriter that you are buying this house in this state as your main primary house.

@Carlos Valencia @Albert Bui

Verbal/oral agreements are not binding in real estate. However, verbal agreements can be legally binding in court if there is enough evidence to prove the agreement's existence and terms. 

Each state and county has different regulation on x days notice needed, in order to be compliable and valid in court. I bet you can find your answers in the city of Chicago tenant's law and regulations

@Carlos Valencia @Albert Bui

hi Sam, there are rehab loans in the conventional loan as well. They can lend you up to 95% LTV or 96.5% LTV for FHA for the land + rehab loan all in. The lender will need to send an appraisal out to see what the estimated ARV (after repair value), in order to make sure that the ARV is above the cost acquired for that house + land.

@Carlos Valencia @Albert Bui

You can see if your garage can make a legal ADU perhaps by getting permits from the county/city. However, if you are just trying to adding extra value by creating extra bedrooms, you would still need to get an approval from the city as well. In order to consider a legal bedroom, each room will need at least 20 inches wide by 24 inches high for a window. If a bedroom without a window, it will be considered a dent.

@Carlos Valencia @Albert Bui