All Forum Posts by: Matthew Kwan

House hacking with FHA is the ideal way with min down payment. However, anything above 3-4 units you would also need to consider passing the Self Sufficient Rule (SS Rule) where your projected gross market rental at 75% has to be greater or equal to your monthly PITI. The SS rule only applies to 3-4 units when using FHA but if it's single family or duplex, it will not trigger the rule. You can also consider doing straight up buying an investment property with 15-25% if you are planning to buy 2-4 units @Albert Bui @Carlos Valencia

Are you trying to invest in single family or multifamily? What is your loan budget and ideal down payment?

@Albert Bui @Carlos Valencia

Nice Vince! 
-house hacking with FHA is the ideal way with min down payment. However, anything above 3-4 units you would also need to consider passing the Self Sufficient Rule (SS Rule) where your projected gross market rental at 75% has to be greater or equal to your monthly PITI. The SS rule only applies to 3-4 units when using FHA but if it's single family or duplex, it will not trigger the rule. You can also consider doing straight up buying an investment property with 15-25% if you are planning to buy 2-4 units @Albert Bui @Carlos Valencia

To add on Nathan's idea house hacking with FHA is the ideal way with min down payment. However, anything above 3-4 units you would also need to consider passing the Self Sufficient Rule (SS Rule) where your projected gross market rental at 75% has to be greater or equal to your monthly PITI. The SS rule only applies to 3-4 units when using FHA but if it's single family or duplex, it will not trigger the rule @Albert Bui @Carlos Valencia

Let's connect if you have any questions on the lending aspect! @Albert Bui @Carlos Valencia

I ususally use or try to use a move in/out list on my walkthrough even though it really depends on how long has the tenant(s) been living but it is just a form that protects you  @Albert Bui  @Carlos Valencia

House Hack #2 my friend. Once you stay your primary house for shortly 1 year, you can use your primary to convert it into a rental property. Before you acquire your 2nd primary house, make sure your 1st primary property are leased up so that you can use 75% of the gross rent. On the other hand, if you are vacating a primary and using FHA, then you will be subject to the FHA 100 MILES rule have 25% equity in order to use rental income to offset from your prior house. However, there are also ways to prevent from triggering the fha 100 mile rule, but if you are just using conventional from your first house then you can just do another conventional loan and repeat the process

@Albert Bui

@Albert Bui @Carlos Valencia

You can either evict them which may cost up to $3-4k for the eviction process or propose cash for keys where you "incentives" them by paying them money to move out ASAP as a way accommodation for them to move out. Yes it sounds bizarre but welcome to Seattle and Shoreline is considered King County. Anything beyond Edmonds, WA is Snohomish county which the regulation laws are different @Albert Bui @Carlos Valencia

Wow cash invested $4,655 that's awesome! Did you acquire this property during the covid? @Albert Bui @Carlos Valencia

I would check in and confirm what your city rent increase limit would be. Some states would have to require sufficient notice like 6months over in Seattle, WA in order to increase the tenants rent. However, you can always incentives them to make your tenants why increasing their rent is justifiable, I usually would give them more access to a storage room or do a minor touchup paint for the unit just to bring in that new/fresh vibe. @Albert Bui @Carlos Valencia