All Forum Posts by: Zach Wain

Option 2.  The odds of that an engineer will say its perfectly up to code and it requires no changes is probably pretty low.  Have an architect look at the unit, and draft up plans exactly the way it is but they will likely give you a couple things that needs to be changed for it to be up to code.  Then you submit plans to city, they may reject them and make a coupe more changes.  Then you complete the changes and you are good to go.

Considering most homes will not cash flow with 20% or less down, plan on 20% and most likely 25% down required - depending on the cash flow expectations.  If you can go conventional, go that route first.

@Deepack Kris - Reach out to Angelo at https://lendwithleverage.com/

Angelo is a great Broker in NC, I have known him for years.  He does great work!

 Correct.  Its not always a perfect no cost, sometimes it a low cost refi, or sometimes the lender credit can be larger then the costs and its actually a negative cost refi.

 You can do this with conventional loans all the way up to 10 properties.  Its my favorite strategy!  As long as you are ok moving every year its amazing

@Johnny McKeon - nice work!  I was about to say todays rates with no points on that scenario is in the high/mid 6% range.

For a refinance, its a combo of rate drop/payment reduction and the loan costs for the refi.  I often refi people with a 0.5% rate drop and no closing costs.  Its an immediate savings, no worry about having to wait 3 years in the loan to offset the massive closing costs some lenders charge for a lower rate.  Savings vs cost!  Whatever makes sense to you, but I would jump at a free refi of 0.5% or more.

@Troy Smith - if you buy a new primary home its 5% down for a conventional loan or maybe FHA works as well with 3.5% down. You can leave your old home loan alone. You can do this every year if you want, its a great strategy to buy homes with minimal down!!

You must occupy the new home for at least 1 year.

Children buying a primary home for a parent is a great program. 5% down and renting 1 room out will obviously not cash flow well. If you like less down and staying more liquid, go for it! PMI is cheap if you have a great score, especially considering you are getting a primary mortgage rate and not a rental rate.

I love the program!

@Rene Ochoa Conventional loans will go to 75% max for cash out on investment properties.  Conventional loans will get you the best combo of interest rate, fees, and no prepayment penalty.  Full income/documentation

DSCR lenders will vary greatly, but 75% is pretty easy to do. But, the rates and fees will be higher then a conventional loan.

If you can go conventional, that is definitely the way to go!  Let me know if you have any questions.

@Armando Carrera is the property a Condo or townhome? $3800 seems high, but maybe that includes an expensive HOA?

If its in a community, double check the rules on STR's