All Forum Posts by: Nick Riccio

@John Lindley there are many things to consider with this. For your current residence, I would make sure it's going to be a cash-flowing asset when rented out. Secondly, why are you looking at an FHA loan? When you use an FHA loan, the lender can not use the rent from your "departing residence", so you'll need to be able to carry both mortgages. This might not be an issue for you but figured I'd call that out.

@Endory Neves Congrats on getting started! There are some good replies already but I would say it's hard to say what is "best" without knowing your full situation, and your goals. Depending on your actual financial situation, you should have options. You can explore conventional/FHA/Bank Statement options. We use bank statement loans for a lot of self-employed due to tax returns sometimes being less than. If you aren't in that situation, you'll have better terms with conventional/FHA. Happy to chat if you need guidance!

@Jeremy Dockendorf definitely can help with this. FHA won't be an option if it's not a primary residence. Conventional second home is an option at 10%.

@Ursula Leake - Happy to chat with you. I'm a 3x house hacker personally, and almost exclusively work with house hackers/investors around the country. Shoot me a message if you'd like!

@Micah Louden congrats on your first property. I'm a little confused - are you talking about the current property, or a future property?

The best way to do a BRRRR typically is either with cash/rehab loan and buying a property significantly undervalued that needs a lot of work.

I've been able to do it a few times in my market where I self-fund the renovations, and then cash-out refinance after I add significant value to the property.

@James Choi the two I'd start with would be agent & lender. Also just continue learning!

@Roy Palmer one of the big things to be aware of is you can not use the income from your "departing residence" when going for a new FHA loan, unless you are moving more than 100 miles. Something to keep in mind.

Welcome @James Choi! Glad to see you guys getting started. The Rookie podcast is great information to learn from - as well as these forums!

Physician & FHA are both good options. I'd recommend learning your budget & neighborhoods and network to find your team, etc.

There are conventional options as well as FHA. I would look to explore these prior to jumping in.

It's important to understand your numbers and the need for post-close liquidity, as things ALWAYS come up. @Paul De Luca makes a good point, I'd work to negotiate a seller credit to be used to cover most/all of your closing costs. This will be a big saver of cash out of pocket. 

Like @Rick Albert mentions, you'll want to make sure you can add value to the property so you can refinance out of FHA, if you so desire. A lot of people miss this and get stuck in loans because they don't have the equity if they only put down 3.5%-5%.

@Cody Cavenaugh all things being equal, 5% conventional would be a more advantageous option.

There is no standard 5% loan product on 2-4 units currently. Freddie Mac has a product, but it is income restricted. So depending on your income, you might be left with just an FHA option.

You might find a small credit union that would do 5%, I'm speaking purely for Fannie/Freddie loans.