All Forum Posts by: Matthew Kwan

If you can increase an additional $200-250/unit that might be something to consider. However, you would need to consider the cost of installing a new in unit washer dryer set. Would you need to add/extend plumbing lines / change the electrical panel for the dryer voltage.

@Albert Bui @Carlos Valencia

Seems like a feasible deal Larry. You also have to make sure how much would you be netting once you move out and in order to use that rental income for that unit you're planning move out, you will have to get a lease signed for one year and lenders will be able to use the leased rental income at 75%.

@Carlos Valencia @Albert Bui

Hi Rob,
Happy to connect! I am based in W Seattle and we focus on working with investors trying to grow and expand their portfolio in real estate. We help investors to fund their deals, and making sure they have sufficient runway to qualify for multiple deals. We are licensed in GA.

@Carlos Valencia @Albert Bui

You can always do a HELOC on you primary up to 90% LTV vs an investment property only up to 75% -80% where rates are also slightly steeper.

@Carlos Valencia @Albert Bui

Hi Cody,
It really comes down to what your long term goal on investing real estate. You want to invest just to have a place to live and potentially offsetting your mortgage payment by renting out the vacated rooms or having x amount of cashflow in the future? Looking into single family houses or multifamily, as there is an actual land that you own and potentially build ADU/DADU in the foreseeable future. However, if you build the ADU and not condomise it, they appraisal will only view it as a SFR and give you the rent as SFR at 75% if lease agreements is being used. If you want to maximize your max rents then if might be a good idea to condomise it so that you can get rents as two separate units. Since last year of November, Fannie and Freddie has allowed borrowers to put min 5% down for conventional loans and being able to invest multifamily up to 4units.
Also, the beauty of FHA is that it allows you to put 3.5% down payment to invest in 1-4 units. However if you plan on buying 3-4units, there is a trigger rule for FHA, it is called the self sufficiency test. In order to past this SS test, your appraised market gross rental income at 75% has to be more/equal to your monthly mortgage payment (PITIA). These are something to be considered. Feel free to DM and we can talk more about it.

@Carlos Valencia @Albert Bui

HI Joseph,
You can always start off on house hacking a multifamily in MI 1-4 units with min 5% down or 3.5% down for FHA. This will allow you to acquire more rental units and also being able to use the vacated unit rents at 75% to help your debt to income ratio DTI.
There is a FHA 100 mile rule if you do plan on using FHA on your 2nd house hack. The fha 100 mile rule will be triggered whenever you try to vacate your current primary and also trying to use the rental income to qualify.

However, this 100 mile rule can be exempted for the following rules

1. Relocation
2. Increase in family size
3. Vacating a joint owned property
4. Non-occupying co-borrower

If you are not trying to use FHA on your 2nd house hack, you can use conventional and the rules that I mentioned above will not be a concern.

@Carlos Valencia @Albert Bui

HI Nooruldeen,

Happy to connect! I am based in W Seattle and we focus on working with investors trying to grow and expand their portfolio in real estate. We help investors to fund their deals, and making sure they have sufficient runway to qualify for multiple deals.

@Carlos Valencia @Albert Bui

Hi Chris,

Happy to connect! I am based in W Seattle and we focus on working with investors trying to grow and expand their portfolio in real estate. We help investors to fund their deals, and making sure they have sufficient runway to qualify for multiple deals.

@Carlos Valencia @Albert Bui

It depends what you are trying to achieve right? Do you value cash flow or appreciation more?

Numbers are more doable in the Midwest where you can acquire units for a lower cash and might get 1% or more of return. However, the rents are slightly lower and could potentially wipe out your monthly cashflows with one major repair.

As for higher appreciation market like West/East Coast, it's more expensive, but rents are higher due to a strong labor market, there will be a certain amount of demand for those markets, but the downside is that you will need to be creative by adding more values for the property. It could be adding an extra bedroom, parking space, or kitchen where you can maximize the potential rent of the property.

@Albert Bui @Carlos Valencia

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