All Forum Posts by: Michael Doherty

@Samuel J Claeson From what I've read, no. It's actually one of the stipulations laid out on HUD.com- hope this helps! If you find out another way to purchase a 2nd property with low money down keeping your current FHA loan let me know- I'm looking for that 2nd property now as well!

@Samuel J Claeson I am in a similar boat as you and your wife- currently own a home purchased with FHA and not sure how to finance the next house w/o having to put 20% down.

I was planning on refi my FHA into conventional after I know it would appraise @25% equity and do FHA again. There are a few exceptions that will allow you to qualify for another FHA loan that you could use ie. family size, job relocation, vacating a jointly-owned property or once you have 25% equity appraised in your current house. With that said you would have to be willing to move again as you know it's an owner occupied loan but could be a good way to acquire properties with little money down. 

@Patricia McPherron Congrats! Do you mind sharing what you did for financing for the first and second property? I am currently looking to acquire my next property and contemplating what method to use. 

Hi all,

I am currently looking for my second deal and want to start 'driving for dollars'. I am specifically looking for a Multi-Family 2-4 unit. Given that most investors don't live in the unit I have a feeling my letters wont be read. What do people do to ensure the owner gets the letter and it's not thrown out by the tenant living there? Look them up on assessor data base and mail letter directly to their home address? Or leave letter in the mailbox hoping the tenants will pass it on. Any thoughts and advice on using this method would be great!

While some people think it may be invasive I would ask for bank statement before actually closing. I would also check local rents around to see if it's comparable with the annual rent they claim to be getting. 

A great example: I was looking at a 3 family house that had completely been gutted. It looks amazing and they claim the annual rent is 50k a year. Come to find out it's not a 'true' 3 family (looked info up on assessor office) and they have no income statements to prove it because it has just been redone and they don't have tenants yet (no way to prove you can get 50k). 

My point is- if they are seriously getting the rent they advertise they're should be no hesitation to show you a copy of a bank statement. Any other cash management systems can be faked (venmo, pay pal, ect.) 

I actually contacted the tenants before purchasing my current property to double check. 

I hope this helps. 

@Christopher Hall @Nick Kaihoi Congrats to both of you! What kind of loans did you have on your first and second homes? I am currently house hacking a duplex with a FHA 3.5% down loan. I am looking to purchase a second property but not sure the best type loan to pursue. REFI and do FHA again while I can? Take out a second conventional mortgage? Find private money? Curious to see what your thoughts are?

Thank you all for your posts- appreciate all the insight! 

@Kerry Baird when you say buy another multi- do you mean buy to live in and then refi and do it all over? Or save enough for a downpayment add sweat equity then use the BRRR?

@Shiloh Lundahl Ya that's a great method and I think I will use it down the road but I think at this point I am shying away from the HELOC simply because I do not have enough equity yet.

Hi all, 

I'm starting the process of looking for my next deal just not 100% sure what method to use. I'm interested in hearing how other investors purchased their second property. I am throwing a few ideas around and want to narrow it down to 1-2, then pursue a great deal with that strategy in mind. 

Current situation: House hacking a duplex since Sept 2017- FHA financing 3.5% down @ 3.65% 30 year fixed. After PITI I pay about $50 a month not including utilities.

Possible ideas: 

- Refi into conventional pull out the little equity I have and use it as a downpayment in addition to savings for something else. Realistically could only pull out 10-15k. 

- Work with a hard money lender to have them finance 80% of deal and 100% of flip- use the extra profits as a downpayment on another property. 

- Save enough for a downpayment and use the BRRRR strategy.

Open to all ideas/methods that have worked for other people from the standpoint of financing/acquiring your next investment property.