I’m stuck trying to buy my second triplex‼️

[Stephon Mosby Williams]

Thanks in advance for any forthcoming help. So I bought my first home(triplex) last year. I used a conventional loan with 25% down. I live in one unit and rent out the other two. My mortgage is $1008 and I profit $352 each month not counting maintenance or management. Things have been going great and I’ve been trying to replicate my success with another triplex. I’ve been calling around to different banks looking for financing for my 2nd triplex and I’ve hit a hurdle. When I did my taxes for 2018 I wrote off my property updates which almost equaled my rental income. That made it look like I’m not making money on my property. I didn’t realize the future consequences of my tax actions when I initially did my taxes. Does anyone know of a way I can find financing without my property upgrades working against me when applying for the financing??

[Bryan O.]

@Stephon Mosby Williams call a few lenders. Ask how they calculate for the unit you will vacate. You were 2/3 occupied with $0 profit, that means when you move out unit #3 is all profit and should make you look like a rock star. Most will calculate 75% of the lease, but since you don't have one they may do 75% of "market rate". If your other 2 are like the third, you can argue market rate pretty easily.

Similar tact for the new property. How do they calculate the rent income? It should also make you look good. There shouldn't be any hangups. FWIW, you have an FHA hanging out in the wings, which is pretty good for landlords and calculation of income, though you have to refinance out of the mortgage insurance if you didn't do 20% down at the start.

I honestly wouldn't mess around yet with all the "go get a commercial loan" type advice. Locking in an amazing, non-adjustable rate for 30 years right now is a no-brainer unless you have compelling reasons not to.