All Forum Posts by: Matthew Kwan

HI Taylor, as long the set a reasonable expectation and requirements to your prospects then the relationship shouldn't matter that much. @Carlos Valencia @Albert Bui 

HI Leanna 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 seperate 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 apppraised 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

I am a mortgage originator and part time investor. There is an upcoming PNW Social meetup at Bellevue WA. You should check it out if you're interested. 

@Carlos Valencia @Albert Bui

HI BOB,

House hacking is always a good way to start your real estate journey. The house hacking is that it allows you to put minimum down payment 0%-5% depending what loan program you use. Ususally, people would use FHA to invest in multifamily as it only requires you to put as little as 3.5% down payment. However, if it's 3-4 units, FHA has a test called the self sufficiency test where your appraised gross rental income of 75% has to be greater or equal to your monthly mortgage payment. However, if you are buying this loan as primary, it cannot be under a LLC since it is considered a business entity.

@Carlos Valencia @Albert Bui

HI Rickina, 

House hacking is always the best way to start off in Real Estate investing since you get to manage your tenants while living there, and most importantly they help offset/lower your mortgage payments. The government incentives us with down payment 0%-5% (depending on the loan programs) and competitive rates just to incentives consumers to purchase a house. Usually, lenders would lend up to 45%-50% of your gross income. For example: if a gross income is $6000 your expected monthly mortgage payment should be around $2700-$3000 assuming no debt just to keep the numbers simple. This will give you a sense on what house much you would qualify. If you have any questions about your scenario, happy to connect with.

@Carlos Valencia @Albert Bui.

 Yes there's one coming up this Tuesday! It's called PNW Real Estate Social at 2Lincoln Tower

@Carlos Valencia

Hi Kade, do you live full time in Vancouver WA? How often do you swing by to Seattle? There's some meetup that I'll be happy to share with you. There's two events coming up next week @Carlos Valencia @alber

HI Priti,

House hacking is always the best way to start off in Real Estate investing since you get to manage your tenants while living there, and most importantly they help offset/lower your mortgage payments. 

Also, rates does not dictate the whole scenario, it only plays in part of the puzzle. The most important thing is to ask yourself will that property cashflow in the LR? Usually, lenders would lend up to 45%-50% of your gross income. This will give you a sense on what house much you would qualify. Also, you would want to ask your agent to fight/negotiate 2-3% sellers concession so that you can apply that seller concession towards your loan on a 2-1 buydown, which could lower your interest for the first 2 years. I hope this strategy will address your concerns on the high interest rates. If you have any questions about your scenario, happy to connect with you @Carlos Valencia @Albert Bui.

HI Berkay,

House hacking is always a good way to start your real estate journey. The house hacking is that it allows you to put minumum down payment 0%-5% depending what loan program you use. Ususally, people would use FHA to invest in multifamily as it only requires you to put as little as 3.5% down payment. However, if it's 3-4 units, FHA has a test called the self sufficiency test where your appraised gross rental income of 75% has to be greater or equal to your monthly mortgage payment. It is definitely achievable in TX.

As for conventional, there is no self sufficiency test but the down payment tends to varies from 5%-20% down payment depending how many units are there. The more unit usually will require more down payment,but lesser mortgage insurance than FHA and no ss test. There is always a tradeoff on both sides

@Carlos Valencia @Albert Bui

HI Kyle, Happy to help and we can discuss any financing scenarios you have either if you are trying to house hack and rent the vacated units just to offset your monthly mortgage payments or just a forever home. Feel free to message me!

@Carlos Valencia @Albert Bui