All Forum Posts by: Torrell Palmason

I figured I had the answer but as with most things trust but verify :) 

"While Washington state does not require business licenses, most cities require either a City Business License and/or a Washington State Business License. The best way to ensure you’ve met all your local requirements is to check the laws in the city your property is located in."

"You need a license if you are an LLC (Limited Liability Corporation) or run a vacation/short-term rental. If your property is owned and held by a WA LLC, you are required to have a business license. Some property managers form LLCs specifically for their rental properties."

I found this answer here https://dimensionlaw.com/2014/...

Best of Luck!

@Mike Crissy If you look at Quorum FCU they offer a HELOC on investment properties 1-4 unit, a minimum Fico of 680, the property can be in a LLC and you can go up to 80%. This is a 15 year loan with a draw period of 5 years and repayment period of 10 years. Quorum also follows Fannie/Freddie guidelines and will finance up to 10 properties whereas PenFed will only go up to 4.

Best of Luck!

So first yes Non-QM will allow STR however when the appraiser goes out and determines market rents he will use LTR as there isn't really a basis for STR when it comes to calculating market rents. You can only count rents from STR once it shows up on your tax returns.

Conventional and Non-QM both allow for STR on a non-owner occupied. What is your reasoning for leaning towards Non-QM?

Best of Luck!

1) The Trailer wouldn't be counted on the appraisal towards the value or in rents. The 3/1.5 and 1/1 would classify it as a duplex so the down payment on a Non-Owner Occupied 2 unit is 25% which on 70,000 is 17,500. So Cash to close would be $17,500 plus closing costs. 

Your PITI on a loan amount of 52,500 and I threw a 4% rate on there would be about 250.64 Then add Insurance + Taxes + Property Management would bring you to roughly the 650 range. From that point you are cash flowing 750 per month between the 3 units

2) If you want to see the property then sure go have a look but more so I would recommend a Property Inspector goes out and gives you a full inspection of the property. They will look it up down and be able to tell you repairs that you have to look forward to that may not come up in the appraisal.

3) Get a buying agent they are paid by the seller and represent your interests 

4) Non-Owner Occupied Conventional 2 unit is 25% Down

5) Anything you are missing will come out through the Inspection and Appraisal

Best of Luck!

Hey Justin congratulations on getting started!

Personally I would want to go solo and take the FHA down on my own. If you go that path that down will be 3.5% down. Also you get the tax write off to yourself and going forward you get to count all the income from that rental towards your income.

If you went with your parents on a non-owner occupied 2 unit the down payment is 25%. That write off is then split and going forward at any point without your parents you will have to count the full mortgage against you debt ratio and can only count half the rents. 

Best of Luck!

FHA is a Owner Occupied loan and you must begin living in the home within 60 days of closing the loan. The best way to approach this is have the seller begin the process removing the current tenant. Otherwise if you close and then begin removing the tenant you could find the process to remove them takes too long and you run into issues with the lender. This could also be placed as a condition on your Purchase and Sales Agreement so that the seller must remove the tenant prior to closing.

Best of Luck!

Hey Nick if you are not going to be living in your home after closing as a Owner occupied loan that is Mortgage Fraud.

Best of Luck!

Well bad news a Conventional Owner occupied 2-4 unit is a 15%-25% down payment, even with a Conventional Affordable 2-4 unit the down payment is 15%. With that out the way, for a first time buyer not wanting to break the bank FHA is a great option as it is 3.5% down for 1-4 units. The downside is there is Mortgage Insurance for the life of the loan but this can be remedied by refinancing to a conventional after you build up 20% equity.

Best of Luck!

Hey Anthony,

So FHA is a great option to get started in investing. There is FHA 203k that is a renovation loan that you can do the purchase and get the renovation paid for however you are not allowed to do you own work. These loans also tend be quite the process so you'd want a lender who is very familiar with these loan types. In this market I have seen these not work out simply because the process is so lengthy.

Another option if you want to purchase with Hard Money. These are fast money loans so you can get the deal closed quick but you cannot live in the home while with Hard Money. So you would have to purchase, rehab, then refinance, so you could begin house hacking.

Other than that you could just do a FHA Loan on a 2-4 unit that doesn't need work to pass an appraisal, the down payment will still be 3.5%. If you want to move in immediately this is the option I recommend, you end up purchasing a bit higher than a home you have to rehab but you can begin leasing out the other units as soon as the deal is closed.

Best of Luck!

Hey Kris,

The max cash out on a Conventional Non-Owner Occupied 1 Unit is 75% LTV that pretty much any lender should be able to take down for you. Another option if you are wanting to get more out of you Investment property is Quorum FCU they offer an Investment Property HELOC that can go up to 80% LTV.

Best of Luck!