All Forum Posts by: Tim Kaminski

@Chris Mason But if I intend to occupy for the full length of time then what is the issue?  Have them come check on me every morning.  I don't mind.

I have an owner occupied conventional duplex. It's been a year and wanted to try to FHA into something bigger. 3-4 units.

Lender is saying the underwriters won’t buy that I would move from a duplex to a 3-4 unit and says that I would need 25% down to purchase.

Is this normal or should I pursue other lenders? Do I really have to explain that I’m just doing this to gain control over assets at a low cost?

@Roy N. What do you mean by you replace windows with ventilation? What exactly are you putting in place of your window?

@Joan-Marie Pagan Find a small local bank to refinance/look for 2nd deal with. Bank that understands the process of BRRRR. 70% LTV is normal. If looking to expand then this is normal and your best bet to get properties without continually using your own $$.

@Blake Edwards I'm interested in doing just this but my realtor and lender are advising me against it.  They say it is not worth refinancing as I will only get back $18K - closing costs AND will jump to higher interest rate. They are both saying to explore HELOCs or buy another with my own cash until I can afford to pull out enough equity to buy homes in cash.

I don't mean to hijack your success thread but this is my 1st deal and trying to figure out how to pull out my cash for the next. I want to BRRRR and don't want to keep pulling out of pocket.

Purchase Price: $ 163,000

Downpayment: $8,150

Rehab : $18K

Current Loan AMT: $152,000

Soft Appraisal: $210-240k

Would still cashflow but obviously not as much.

Lender says he can only go up to 70% LTV as it is a 2-4 unit property. Is that normal for multi or should I shop around?

Just wondering if you would think it is worth pulling out cash to invest in another property or listen to agent/lender. 

@Chris Isley Do you mean that the ARV should appraise higher or that the current home in its dilapidated state should still appraise higher than Loan+repairs? Curious

@Matthew Perry Is that similar to a HELOC? A second mortgage.

You are still able to cashflow from each duplex after you pulled the second mortgage?

@Matthew Perry How are you financing?    Are you able to recycle money from your 1st duplex or are you using personal money each time?

@Jeff Brower Thanks for the info. I am looking at FHA for my next investment. I guess the only drawback that I see from FHA is that you cannot buy homes with any forms of distress so it is harder to find a home under market value. Like you said, home has to be move in ready and in good condition for FHA inspection to pass. So you are using FHA to obtain an asset for a low upfront cost but will have to search off market, like you did, to find the homes that make it worthwhile.

@Jeff Brower Did you find that the FHA inspection/loan process was difficult? I've heard it is kind of a pain to jump through their hoops. True?