All Forum Posts by: Ash Hegde

It will generally be at least 20% down on DSCR single or multifamily. The benefit on DSCR is that it will ignore your personal debt to income ratio for qualification, but you don't get the low down payment options of owner-occupied conventional or FHA.

Those "we buy your house" companies buy at a very deep discount. If you are considering that it would be better to use a good agent like @Ray Hage, you will get a lot more money. Unless, like he mentioned, the house is in poor condition and won't qualify for a bank loan that a typical buyer would need. 

Welcome to BP! House hacking is one of the best ways to get started. 

Welcome aboard and congrats Lacy! 

Hi Chris,

In this scenario, where there is no 1031 exchange to defer taxes, the timing of the 120k to pay your SFH off does not matter. You will be taxed on the sales price vs the tax basis in your duplex, not the actual cash received at closing. The amount of debt on the duplex at the time of sale is no factor.

Welcome Nate! House hacking is probably the best way to start, so you're already on the right track. 

This sounds like a live in flip, which can be a nice way to get some tax free capital (if you live in it for two or more years). The suggestions of getting a 2-4 unit multifamily are great too. 

A single member LLC is disregarded for federal tax purposes. There can be legal/asset protection benefits but not tax benefits. Your rental income and expenses would end up on your personal return and could net to zero, but not be deductible (unless you have real estate professional status).

Bill does have a good idea about living in a residence for two years, fixing it up, and selling it with the exclusion (up to 500k for a married couple), if that was something you wanted to do.  

For a DSCR loan, that is common. It's possible to find them without prepayment penalties, but the tradeoff will generally be a higher interest rate and/or additional fees (points).

@Ray Hage can probably help you out with this. He's an investor and agent in the area.