All Forum Posts by: Ryan Naylor

I agree mostly with Andrew postell above,  In order to qualify as an investment property from out of state and not a primary residence that you are living in, you are going to need more money into it as a down and then a qualify as a conventional investment loan.

If you want to start building equity before you move into it to house hack it at a later point, you might want to consider a turn-key that already has all the leases in place to help with qualifying supplemental income to purchase before moving into it.

And later down the road when you are ready to move in, you can pull out the equity in a cash-out refi into an FHA loan and rate.

By getting into an FHA after the initial investment N.O.O. loan and interest rate to a Primary Residence FHA interest rate should be much more favorable.

Message me when you are ready to talk.

Does that make sense?

Daniel Day

from New York, New York

Yes of course fraud has to be intentional. Sounds like your planning on it not working out. Look into the 203k loan. It's time consuming but it's a great option if you can get the numbers.

@Tanner Barnes

@Casey Christensen

Agreed. As long as the numbers work, it's a fantastic place to invest.

The appraisal would still need to come in considering any needed fix up. Also, you would need to sign that you intend to stay in the property as your primary residence, If you don't actually do that, it could actually be a fraud if it's found out about.

The option you might want to consider, is an FHA 203k loan. That will allow you to stay in the home conventionally and get the funds needed to fix up any issues with the house, AND it's your primary residence..

 I'm Glad, thank you for the feedback!

Be sure to keep us posted on it goes for you, because want to know!

Take care and good luck!

Ryan

 Did you mean to say that or am I missing something? Was that a typo? I don't get it.

Thank you sir!

Have a great day!

Just curious of your intent on this property, Are you planning on a refi to pull your cash back out? or being that you paid with your own funds are you planning on just letting it cash flow without the debt?

It doesn't matter what you need it for, it's the same result. Money in exchange for equity, HELOC is generally easier to get, it's like a credit card, use it as you wish or draw on it as needed. Cash-out is wire transfer or a check written out to you based on your equity. It's the same thing. Do you care whether it's on a card or in your account? Me either.

The difference is the cost of the loan and the terms.

HELOC is cheaper in my area. Home Equity Loan or Home Equity Line of

Credit. They can be fixed rate or variable, if you don't spend any of the funds, then you don't have a monthly payment, so they are advantageous to having access to the funds and not making a monthly payment while you shop for the flip.

Cash-out refi is a fixed rate with terms.

It's a fixed payment and you can foresee what you will be paying every month. 10 year, 15 year or even 30 year terms.

HELOC is generally a variable rate which means the payment can fluctuate, but also on the plus side is you can get an introductory rate, much like a credit card and choose interest only payments. We offer 10 years of interest only payments which is good for a BRRRR to keep the payments low in order to stabilize the property, but of course the payments will go up as will the rate generally.

Start calling banks and credit unions and ask, " what are your terms for a HELOC? Are you currently offering an INTRODUCTORY rate?"

And then, "what are your terms for a cash-out refi?". Write it down and do some math.

Be honest with them and tell them what you are doing. But don't say the word FLIP!

Say investment property that may need some repairs so you can get it rent ready.

Where's your VA benefits?