All Forum Posts by: Tychua G.

@Conor Kearns Looks promising but what rate are they offering for this LOC?

@Stacy Raskin - What does a doc package look like for a DSCR loan and how much higher is it compared to a conventional rate?

@Brittany Minocchi This is a great solution. Do you know or have experience with any DSCR lenders? (You can pm if you can't say here)

I have never heard this, is this relatively new?

Hi @Justin Brickman,  I think more specifically I meant to ask how to go beyond W2 lending programs.  Any thoughts?

How do people overcome DTI limitations of a saturated RE portfolio? Is commercial the only way to go?

Curious to know at what point does buying a Primary make sense over buying rentals?

@Account Closed If you started today, what would your roadmap look like if you were dropped in a random state?

I appreciate the thoughts in this thread, keep it coming!

Quote from @Julien Jeannot:

@Tychua G.

I'd combine option 1 & 2 and house hack a multi family 2-4 units.

That's how I started and it worked out wonderfully. You get all the benefits of the two options.

I see this as a popular option amongst a lot of early investors.  Can you go into more details about the time frame on breakeven and how long before you moved into your next unit or upgraded primary?  Appreciate your input!

Quote from @Eliott Elias:

Why is buying a property with negative cash flow an option? If I had that cash and had steady income, I would use it to buy as many breakeven/cash flowing rentals as possible. I would not waste my money on a primary.

Choice 1 seem to be unpopular but I'd like to be objective and ask in what scenario would this choice be appropriate?  Is there a ratio or threshold in income or assets where this option becomes acceptable? (i.e. Having other non-RE assets performing etc.)

Quote from @Kevin Sobilo:

@Tychua G., I would house hack small (2-4 unit) multi-families with value-add opportunity.

So, if I bought a small multi-family lived in 1 unit for a year and did improvements to bring rents up even a deal that wasn't generating much cash-flow will generate cash-flow with increased rents and especially when I move out!

After a year, I would move on to the next house to do the same thing. Within the same 5 year period you cited in your option #1, I would have a nice little portfolio of cash-flowing rentals with untapped equity from the improvements I did plus a little mortgage pay-down. If I wished I could tap some of that equity to buy a primary residence to live in long term.

 This seems to be a reasonable approach but what happens if the macro fiscal environment further deteriorates leading to declines in home prices?  Are improvements to a homes automatic equity in a depressed environment?  Appreciate your input!