All Forum Posts by: Mason Hickman

@Naphese G.

A buy down should just be structured as a seller credit and you can use the funds any way you wish (either through rate buydown or lower closing costs). It is less money to the seller; there aren't any magical benefits to a rate buy down for the seller. 

@Billy Farley

Find some local wholesalers; check craigslist, call long term expired listings and FSBOs. 

@John Crimmins

I think they are icky. Wouldn't rent a dated unit with one. If we did, I DEFINITELY wouldn't use it. 

@Lisa Wright

Lots of it will depend on what else you have going on with your taxes. @Ashish Acharya brought up the payroll maximization. Do you have rentals you materially participate in and can offset with REPS? What does your spouse do? Hire it out and get assistance to maximize all around. 

 You likely won't be able to effectively market or show the property to get a rental contract on it during your due diligence period. Also, you can't sign a rental agreement for a property you don't own yet. 

Get comfortable and confident in your rental comps. Ask your agent to assist in pulling rental comps plus pull them from all the usual websites (rentometer, zillow, etc)

@Joe B.

With such a low interest rate on the property, you won't be able to replicate this in another property (at the current moment). Also, if you are going to be buying an investment, the interest rates will never be that low and you will likely need to put 20% down on the property. With the $60,000 net you can pull out, you would only be able to purchase a property at $300,000 without putting in more cash out of pocket. It really isn't that much bigger. Personally, I would hold on to the property and let it cash flow then look into a HELOC down the road or do a cash out refinance in order to get some of the equity out.

@Edgar Garnys

Rentometer, Zillow, Craigslist, Facebook Marketplace, and local agents to pull rent comps from the MLS.

@Corey Bogaski

The terms are where the deal can be made or broken. It is difficult to answer how to structure because the seller will likely have their own thoughts. Things to focus on and levers to pull: interest rate, down payment, amortization, term of loan, interest only periods, prepayment penalties, etc. 

From a traditional lender perspective, they likely will not see this property in your DTI because it likely won't be reported. Depends on how deep they dig and the loan you are going for.

Yes, you can cash out refinance after improving value. 

I am curious if anyone has any experience with the Vail Colorado InDeed program with the purchase of deed restrictions? I am not interested in investing in Vail Colorado but am interested in learning more about the model they have created in Vail for the purchase of deed restrictions. We have a similar long term housing situation on Cape Cod in Massachusetts and was curious to see if there is any first hand knowledge from other investors. I have already gone to the Vail InDeed website and done my homework there, so no link is needed. Hoping to talk to some folks who have first hand experience. 

Thanks in advance!

@Michael Furey

Definitely do not do this. It is mortgage fraud to get a loan for a primary and rent it out, especially with a federally backed program! Look into banks that offer 10% down vacation/second home loans. Typically, they will require you use the property at least 14 days per year. Your intention in getting a vacation home also needs to be to use it for your own use and the rentals are supplemental.