All Forum Posts by: Pierce R.

@Tito Cotto

No they are not the same.

The 203k loan is an FHA program in which you can receive a loan for the purchase price and repairs that you would like to make to the property.

Cash out refinance is when you refinance a current loan on a property in which you have equity in. You refinance at a higher amount than the original loan creating cash in your pocket at closing.

Hope this helps.

Good luck on the house hack. I have been doing it for a year and a half now. Scary at first, but we have settled in nicely and the things we were worried about a year ago seem like nothing to us now.

I have to say I disagree with Sharon above for a few reasons.

1. You get to learn to how to be a landlord. What easier way to start than when you live next door? If you don’t do it now you’ll probably never realize that it’s much easier than you think.

2. You learn to keep emotions out of your decisions. This was tough for me at first, but your tenants will eventually learn that living in the same building does not make you their babysitter.

3. You save money. 10% of rent adds up quickly and it will be money you don’t have to invest in your next deal.

A lot of banks will rate match as well so you can use that to your advantage. If Bank A doesn’t require initial draws but Bank B has a lower rate and does, get a term sheet from Bank B and take it to Bank A and they will likely work with you.

Every bank will be different but the more you talk to the better off you will be.

I'm not so sure this would cash flow very well on a 30 year fixed with $9,000 in taxes. Even $160,000 at 5% you are looking at over $1,600 PITI.

I would look to sell and, if it makes sense for you, look to use those funds as a down payment for a multi family. Will increase cash flow greatly and ideally you will have additionally equity by the time you are ready to retire, should your goals change.

Good luck!

Congrats! 

Are all of these properties located in Lewisburg? I am familiar with the area as I grew up in Montoursville and am in the process of closing my first deal in Williamsport.

Good Morning,

Is anyone aware of a minimum amount of time required to occupy a property that is purchased using this Freddie Mac program? We are first time home buyers looking to house hack a duplex and have a few reasons why we would like to avoid FHA. The Home Possible program seems to be our best option because of the low down payment (we were approved at 5% down). I know that FHA requires you to occupy the property for one year and was wondering if this program required anything similar. Have been browsing the forums and can't seem to find an answer.

Thanks!