Matt Porcaro
speaker
689 appearances
2 recordings
1 series
first heard Nov 2024
last heard 1 May
Matt Porcaro’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in May 2026 with 1.
Appearances
Now, to make things even better, again, you can buy a multifamily or even now, just as of like really last year, they're letting you forecast the future rental income or letting you use the rental income of accessory units. Like down here in Miami, they have like casitas, like little mother-in-law suites, right? Typically, they wouldn't use that rental income to qualify you.
So you're able to take that rental income and really offset your mortgage or if not cover it all in these higher cost of living areas, right? And one cool thing to know is that for every $1,500 in rent that you'd be getting from either, you know, there's ADUs, accessory dwelling units, which are becoming huge right now because there's such a lack of housing in the U.S. right now.
ADUs are sweeping across the nation. So if you're saying to yourself, oh, I can't buy a multifamily. I live in an area that's only in single family homes. Well, you could just plop down a casino. I mean, you could even buy one of those like Amazon houses, those pre-built prefab houses and drop it in your backyard. The 203k will finance that.
Yeah, yeah. So, like, you could buy a prefab house. Obviously, you have to, like, you know, finish it and do some, like, stuff inside. But, like, it's a pre-built structure that you drop in your backyard as long as your zoning allows it. You can get the rental income from that, qualify yourself for more. Again, now that's a true investment. You're making money off your own home.
And that's an investment. And that's where you're basically beating the system. When I say like the American dream's new, like this is the new American dream, right? When my family came over from, you know, like Italy and, you know, from, you know, from Ireland, right? And they moved to New York City, they all house hacked.
It was called like, this is how we're going to afford to live in New York City. They had multifamily properties. They lived in these tenements. They all pitched in. One of them in the family was the lucky one that had the note and they took all and they all combined their rent together. That was how people that immigrants came over to the United States. That's how they were able to afford it.
And that's how a lot of people do it. You see it. You still see it to this day. Immigrant families come in and they share housing. House hacking is like the most American thing you could do.
And just with like anything else, like you said, it takes effort. Now, you know, what's the quote? Like to the victor gets the spoils or whatever it is. Like, listen, you like you're not going to get something for nothing. Right. Do you live in the home? Like while it's being renovated? No. So you don't have to actually like physically occupy it. So what happened in my case, right?
You know, I bought the property. It was an eight month renovation. So the requirement is you have to be you have to intend to be there as your primary residence for a year after the closing date. So what happened was the renovation took me eight months. Now, in my position, I was lucky enough. I was able to live with my family at the time.
So I didn't have I didn't have to pay for to like a mortgage and rent at the same time. However, they have it built into the loan because they know living with their family. Yeah. But but one of the cool things and one of the cool features is like they understand that you might be paying housing for another place while this is being renovated. So they give you the option to wrap up to now.
They just changed up to nine months of the mortgage into nine of your mortgage payments into the loan. So now you don't you could buy the property, not pay out of pocket for it while it's being renovated.
And the coolest thing about it is, again, just very recent. So here's the thing, right? Obviously, we know what's going on with the market, right? Everything's changing. Everything's getting more and more expensive. It's getting harder and harder for millennials to buy a house, let alone renovate it.
um we saw it was all in the news like there was a big downturn in the in the amount of mortgages being endorsed right it was like an all-time low or the lowest in 18 years whatever it was right people were just not buying homes yeah they thought that jacking the interest rates they thought would you know help it but it didn't actually people were just like well we can't afford anything and sellers like we can't go anywhere right so it it did the opposite like you know value stayed up so fha and fannie mae
even though they're government-backed entities, they're still entities and they still need to make money. And what happened was that they had to go back to the drawing board and be like, well, how else are we going to continue to make these programs more feasible, more attractive? Because we got to do something because we're not bringing in any business. We have no mortgages being endorsed.
So they made a lot of changes recently. Number one being that Fannie Mae, typically FHA was the only product that you could buy up to a four-unit property with only 3.5% down or a low down payment if you own or occupy it, right? With Fannie Mae, you could buy a quadplex, but you would have to put 25% down, even if you lived there.
Fannie Mae changed it where now you can buy up to a four-unit property for only 5% down. And one of the big issues people were finding with FHA, we were just talking about it with one of the guys over here about the self-sufficiency test, right? FHA has this thing where like, if the property doesn't pay, it makes sense. I mean, it's common sense.
But FHA had this test where if the other three units, if you're living in a quadplex, if the other three units couldn't cover at least 75% of the mortgage, They wouldn't give you the loan. And it knocked down a lot of people's opportunities to buy quadplexes. It also exists with triplexes. Same kind of deal. Fannie Mae stepped into the mix. They don't have that same requirement.
So as long as your income can do it and you're able to factor in that future rental income, you can do this now. And then Fannie Mae, unlike FHA, Fannie Mae allows you to repeat the process. They allow you to have up to 11 of these in your name at any given time, where FHA only allowed one. What? So I can have 11 of these? Yes. Including your primary.
As long as you follow the guidelines on what you're doing, you have something that's going to cover the debt on the previous property and you qualify income wise and you're moving in earnest into the next property. Absolutely. Sanity to me. Yeah. And 5% down every time.
When I built this, all I wanted to do was, you know, I got done with that first deal. And I just remember sitting in that property, being done with the renovation, smelling the paint on the walls, smelling the new floors, like looking around and just being like, how the hell? do not more people know about this? Right. Why did this take me so long to even know it existed?
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