All Forum Posts by: Ray Williams

Love it. Sounds like you took the first step by making this post. Find one thing you can do rn to achieve that first goal. 

Awesome! I didn't catch if that home is your primary or is a rental. If primary, are you claiming the renal income? It sounded like primary based on what you mentioned above. I am in Denver, not licensed in VA but if you ever want to pick my brain search me up and schedule a consult.

An interesting observation I am seeing rn is investment property rates rivaling second home rates. I have had a few clients lately finance as investment properties and end up with better terms. Ask your lender about this.

Joshua! Welcome to the journey. What is one thing you are doing right now to pull that trigger on your first property?

 Ultimately it will come down to credit and capacity. Your scores will impact the interest rate. The down payment will also affect final payment. Depending on where you live the property taxes and insurance will help or hinder. The positive for you is that we hit the ceiling in mortgage rates at the end of last October, with them being down about 2% since that time. You should be able to get a rate in the 5's. 

Have the loan officer you are talking to model out both, so that you know you can close on the multi fam once you close on the HELOC. As example, to cover how much of the proposed rental income from departing will be credited against those mortgage payments. And also, your student loan debt will have a payment factor in your debt ratios on the next home. At the same time, if it is 5+ units the underwriting guidelines will be different than 1-4 units will be, so answers will vary. The right loan officer can answer all your questions above!

I'd love to give feedback, although I am not totally clear on the question. It sounds like you are concerned about worse case scenarios? End of the day borrowing against a rental will always cost more than your primary residence. One thing to confirm is the interest deduction on the HELOC, primary V investment as it pertains to the next acquisition. Again, not totally sure I understand your question though.

If you have underwritten the market and community that is a great start. Why are people traveling to the area, understanding this matters. From there, peg your ideal client (use GPT) and when you buy build out the stay to attract those guests. Determine the need within the community, bedroom count etc. For me I can't say I think about my competition. I think hospitality, and unfortunately the majority of the STR market is hosts who don't. Take action and have fun!

Wide and deep question. Go with someone trusted that you also research for their reputation. As for financing the home, it depends on what your capacity, and credit are. It sounds like this is a primary residence purchase if it is for your family, so that would result in a different answer than an investment property. The way to get the payments the lowest is always tied to amount financed, and cost of borrowing. Not sure if this helps, but maybe a start for you.

If you are going traditional you will see rate and closing cost breaks with 25% or 30% down. 20% down will be higher rates and fees. Make sure to dive deep with your lender on the analysis to ensure you make the right decision based on goals, short and long term.