All Forum Posts by: Alex Agafonov

I recently purchased a foreclosure on the Northwest side of Chicago with a partner. We are currently looking for local architects that can pull city permits that fit within our budget (<$5k). Any suggestions?

 Jon,

If I am unable to count this "roommate income" as income, is there a chance that it be used to offset the mortgage on the first property since it is cash flow positive?

Thanks!

Relatively new investor here!

I purchased a single family home in October 2014 and have been renting out 3 of the 4 bedrooms ever since. This results in a monthly profit of $427. I am currently on a plan that would allow me to purchase a 2nd property in the next 15-18 months. However, it would be hard for me to qualify for a second mortgage based on my monthly income and I want to take my rental income into account as this is an additional $5124/year and can offset the mortgage from my liabilities. 

I am now in the process of filing my 2014 return and due to the limited number of months that I rented the property (November/December), the number of deductions that I am able to take from the home purchase and a few repairs that I did prior to move in, my rental income is showing as -$3300 for 2014. Will this create issues for me moving forward? What is the best way to handle this? I am willing to limit my deductions to show a more positive rental income number. 

Thanks in advance!!

@Brandon Turner  what assumptions do you use in terms of securing financing in your models?

My apologies for not making this clear in my original post, but  I would specifically be looking to purchase a second property without selling the one that I just bought as I want to pursue the traditional buy and hold strategy with my investments. 

The strategy that is most attractive to me is @Brandon Turner blog post "A Slow, Boring, Incredibly Awesome Strategy for Building Wealth Through Passive Real Estate Investing" where a couple can purchase 8-9 homes in a 10 year period. My personal monthly savings are $1200 and the property cash flows at $1000/mo, leaving me with approximately $26400/year in cash that I can put towards a second property. This seems like a better financial situation than the hypothetical case study, so my question is how would one find financing in a situation like that...is it worth attempting to secure a conventional loan or should I just go straight to a portfolio lender when I am ready to buy again in 2 years?

First time poster, but definitely not my first time on these forums and I am never disappointed with the wealth of content on here. I am 23 and just closed on my first property this week using an FHA loan. I will have roommates living with me that will be paying monthly rent. Naturally I am already looking forward to my second, third and fourth properties. My plan is to be an owner occupant at this property for 2 years and then look to purchase another property. Per my calculations, I should have 50-60K in two years to throw at a down payment for the new property. My issue will be debt to income ratio - current mortgage payment puts me at 44%. However, the rents will cover the mortgage payment and then some. What is the best way to finance the second property?