All Forum Posts by: Matthew Kwan

Congratulations Sophie,

You should always look into single family houses or multifamily, as there is an actual land that you own and potentially build ADU/DADU in the foreseeable future. Also, the beauty of FHA is that it allows you to put 3.5% down payment to invest in 1-4 units and rates tends to be lower than conventional. 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 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
As for conventional, there are no specific tests to pass but down payment would require more than fha depending on the unit. Usually 15%-25% down payment for 2-4 units and 5% down payment for single family. Also, the mortgage insurance is slightly lower than FHA private mortgage insurance.

HI Colby, 

The one good thing managing your own property especially your 1st property, you will have hands on experience and it allows to have a sense of what a landlord's obligation. On the other hand, he good thing of hiring a property manager, it allows you to get less involved with the conflicts/drama between the landlord and tenants. However, you will still need to be hands on and have a close communication with you property manager.

As for house hacking, the good thing about it is that after one year, renting out your current home can add extra income which can help you increase your borrowing power. It will depend on how much you need for your next primary residence if what you currently have in savings enough for down payment and closing cost then you should be good. Once you buy your next primary home and you plan to live there and move out after a year to buy your next property then you need to make sure your potential lease will cover your future Mortgage payment with Tax and insurance. Then continue to do the same with your future investment properties.

@Carlos Valencia @Albert Bui

You should do a short video or do short term promotions like 20-50% off on first month of rent just to attract more viewers on your post. Usually less inquiries means that the price point is too high for your area. Maybe, try researching your area again and see what's the max rental you can receive @Albert Bui @Carlos Valencia

HI Mary, it really depends on 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.
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

Do you know an ideal loan program that you're planning to use or pursue? Usually lenders would lend 45-50% of your gross income, so that can give you an ballpark on how much you would qualify. Happy to connect and strategize your loan scenario.

@Carlos Valencia @Albert Bui

Hey Luke, I still believe finish your schooling because this is the best and only time that we can attend school with minimum commitments. Once you start working in the real world you'll never want to go back to school unless it's a requirement/related in progressing into your career path. However, the one thing you can do is to attend seminars or local meetups to get an understanding about your interest in that industry. Happy to connect with you since we're both based in WA, Seattle in my case.

@Albert Bui @Carlos Valencia

In theory they signed the lease for 3 months and paid for the 1st month they are entitled to occupy the unit. However once they stop paying next month rent and being unresponsive the landlord should have the right to claim ownership of the unit.Make sure you have hard evidence to proof that the tenant has not been present and that you have been reaching out to them just in case a legal suit might occur @Carlos Valencia @Albert Bui

HI Travis, house hack usually allows buyers to have half or one percent lower than buying an investment properties. Also, it would require more down payments than a primary house. The good thing about house hack is that it can help lower your housing expenses by renting out the vacated units since housing considered a person's highest living expense. As for investment properties, it allows you to rent out your property at full potential rent. 

Happy to connect with you and wish you all the best with your investing journey. @Albert Bui @Carlos Valencia

HI Geoffrey, we work closely with full time investors and make sure you're maximizing your borrowing power. Happy to connect and discuss your scenario @Albert Bui @Carlos Valencia

HI Caeden, yes are correct you will need 25% of equity from using FHA to refinance. Also, if you are planning to use your rental income from your current primary or using 2nd FHA, there is a 100 mile rule that you have to encounter. However, if you move out from your current primary or move back to your family's house for a certain period, the fha 100 mile rule would be waived. In other words, you can always use conventional on your 2nd primary which is more straightforward and less hurdles to encounter. However, the min down payment would be 5% vs 3.5% FHA. @Albert Bui @Carlos Valencia