DPA, or Down Payment Assistance comes in all shapes and sizes. DPA is an awesome way to bridge the gap between owning and renting. But let me delve into this a little to help bring some clarity in how they work.

First off, Grants are a form of DPA, but not all DPAs are grants. A grant comes from an entity, typically a government body, which “loans” you a sum of money (usually $5000 or more) for down payment and/or closing costs. Yes, I said “loans” and not gives. There’s only one grant I’ve ever worked with that was an actual gift never n...

Home Equity Lines of Credit, or HELOCs, are a loan instrument used to access your home equity.

I want to address what they are and then how to get them.

First, a HELOC does not function like a regular mortgage. It is not an installment loan. But it IS a lien against the title to your house, just like a regular mortgage is. And if you fail to make your payments on time you can lose your house to foreclosure. A HELOC can be charged up and paid off and charged up again just like a credit card. As long as you have equity you should be able to...

Frequently Asked Questions About Investment Properties

Question: If I’m the landlord, doesn’t that mean I’d be responsible to repair broken things on the house?

Answer: Yes in many cases. Setting up the leases carefully can alleviate some of these challenges. But most investors I work with allot 10% of the rent for these expenses. FNMA defaults to 25% of the rents for expenses. If you’re collecting $2000/mo in rents, you’d have $500/mo for repairs, vacancies and all the other expenses.

Question: How many rentals can I finance?

Answer: 4 fin...

Ok, so down payment is the biggest challenge most face to buying rental properties. 15% down on a $200k single family house is only $30k, much more reasonable then $75k down on a 4 plex. But aside from down payment, another challenge people face when doing this is the structure. Like I said before, rumors are that we’ll soon accept smaller down payments. But is that wise? Cash flow is one of the challenges many landlords face.

Many tax returns come to me with rental properties on them showing a net loss each year. Why is this? It’s simple...

I think it isn’t much of a secret that real estate can be a powerful tool for us financially. Most home owners can look to their home as an asset that has allowed them further luxuries. So why not own more than one?

At 40 years old I am not banking on receiving Social Security Income. Though, I have to give them credit, it’s still pumping out income for people even though 20 years ago I was being told it would be dried up by now. Anyway, I’m not personally banking on collecting it. So what will I do when I no longer can work? Let alone w...

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Investment Properties Part II

January 31, 2017

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Josh Thomas NMLS #314438 | UT #5540196 | Corp NMLS #2727