All Forum Posts by: Vy Mai

I'm getting ahead of myself, but I would like to have things prepared before I buy my first investment. Like what do people do for background check on tenants?

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@Rob Beland Thanks for your helpful insight. We have a hard time keeping cash in our bank account. It either goes to stock or I put all my money in the mortgage otherwise we'd spend it on food or home improvements.

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@Mike Hurney I live in Lawrence but like to find a rental place in Lowell in hope that I'll find tenants easier

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Originally posted by @Shaun Reilly:

As mentioned $67K won't get you very far as you get in or close to Boston. Really that is an okay down payment on a 2BR condo most decent areas near there, at best.

In Lowell if you the idea is to get a place that is attractive to students you can get a little further with that kind of money. You can get the same 2BR condo mentioned almost just with the cash.

Do you plan on getting a regular bank mortgage on any place you buy? If so don't get to excited about using a HELOC for the down payment. Most banks won't let you take the money from that for the down payment. If you think you want to do that then take the money out ASAP and leave it in your bank account. The bank will usually ask for 2-3 months of back statements so seeing a $67K deposit will raise a lot of questions. Having a lump sum in there from farther back then they are looking will be less of an issue.

Hi Shaun,

Yes I was going to get loans from Quicken Loans. I have a conventional loan with them for my main residence property. Someone mentioned that I should talk to lender first prior to taking out the home equity loan. Would you recommend that as well? Do I tell them that I will take out the home equity loan for a down payment?

Thanks

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Originally posted by @Account Closed:

@Vy Mai I took out a home equity line and bought 6 properties this year. I live in San Jose and invest in Indianapolis and Birmingham. Let me know if I can help.

Hi Joey,

Home equity line is the type of loan that doesn't have fixed interest right? I want to do a fix interest type of loan. Did you get the lender pre-approval first before taking out the home equity line or did you cash out first and talk to the lender? Can you tell me more about your buying process?

Thanks
vy

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Originally posted by @Rachelle Rodavia:

@Vy Mai

Welcome to the BiggerPockets community!

Good luck on your new adventure!

Thanks Rachelle

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Originally posted by @Rob Beland:

With $67K cash to invest

@Vy Mai its unlikely you will find anything in Boston that you can afford. You might want to focus further west in Middlesex or Worcester County. Why Lowell? What are your investment objectives/goals? What is your investment criteria?

Thanks for your reply. I was thinking of getting a 1-2bedroom condo in Malden. I was thinking of Lowell because it has a university there. So, there would be more chances of finding tenants. My goal is to find a rental property where I can have at least $200 cash flow per month and keep it for a long term.

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@Justin Repp. Yes I am aware of the bank wanting you to reserve some money in the bank. So here are my rough numbers of what I'll be using with $67,000.

6 months reserve on main property: $9K

6 months reserve on rental property: $9k

40K for down payment

9K for closing costs

What kind of questions should I ask the lender? Should I get their pre-approval? I was thinking they wouldn't give me the pre-approval without having $67K in the bank first.

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Originally posted by @Justin Repp:

@Vy Mai $67,000 won't get you very far as you get closer to the city. As you may know, chances are you are going to need to put down 25% if borrowing from a conventional bank. They will also want to see a few months of reserves in the in case you have some vacancy or surprise expenses. Not trying to deter you, but you should just be mindful of these things. I would first talk to a lender before you go and take out the Heloc.

I think your idea of getting a rental property near Umass Lowell is great idea. You will always have a solid pool of rental candidates. Shoot me a PM if you need help finding a place. I am Realtor based out of Beverly.

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All Forum Posts by: Vy Mai

Vy Mai has started 33 posts and replied 102 times.

Post: Getting Ready: How do you do background check on tenants?

Post: Getting Ready: How do you do background check on tenants?

Post: Newbie from Massachusetts

Post: Newbie from Massachusetts

Post: Newbie from Massachusetts

Post: Newbie from Massachusetts

Post: Newbie from Massachusetts

Post: Newbie from Massachusetts

Post: Newbie from Massachusetts

Post: Newbie from Massachusetts