All Forum Posts by: Adam Matteson

+1. I've also been unsuccessful applying for a mortgage while living abroad. I live in China and file a Foreign Earned Income Exclusion so that I don't get double taxed. I've been turned down by several lenders, including USAA and a few credit unions and local banks. The reason for the decline was always some version of "your foreign earned income reported on form 2555 is reported as a negative towards your gross income, so we are not be able to qualify/approve you." I found a great partner to go 50/50 on some cash deals instead, but in this climate would really like to use leverage :) Any lenders who can help out feel free to message me. 

@Brenden thanks for that. When I apply for mortgages, there is usually a space for a co-applicant. Would having a co-applicant apply with me for the mortgage help me get around the tax issue? 

I’m looking for advice on how to finance a rental property in GA. I’ve made an offer on a house for just over 56,000. Unfortunately the national bank I was preapproved with has a 50k loan limit, so I’ve been looking for other options. I’m getting rates like 5.8% and 6% on a 45k loan, even with paying several hundred or even thousand in discount points. Those seem steep to me. Are these rates high because the loan amount is low, or I’m a first time investor? Or do I need to just keep looking? Any recommendations for lenders who have dealt with US citizens living abroad? 

Another hurdle I’m coming to is getting approved. I live file a Foreign Earned Income Exclusion when doing taxes. I’ve had some lenders tell me that this in effect means I don’t have income, and can’t approve me because of this. Has anyone had experience with this?

All thoughts are welcome and thanks! :)

I'm also quite interested in Warner Robins and am actively looking there now. I'd love to connect with some agents and anyone who can help an out-of-state investor get started there!

Thank you both for your replies - this is helpful information for choosing my strategy. My initial thought was to value cash flow over appreciation, and this helps confirm. 

Hello~

I’m a 35-year-old guy from western North Carolina living in Shanghai, China for the last five years. I save about $2,000/mo. So far, I have been investing all I can in Vanguard funds, but now I’m looking into real estate. I’m still very much in the education phase, learning how to analyse a good deal and trying to understand the numbers.

I think I can have about 30,000 USD ready by winter or spring of 2018, which should be enough for a down payment on a single-family home (say 20-25K plus a little padding). My credit score is 792. I am thinking to prioritise cash flow over appreciation, as appreciation is speculative and financial independence is my end goal.

Locations: I’m going to stick with the US because I know it’s less risky. I’m leaning towards North Carolina, Memphis, Florida, Atlanta and Kansas City – Nathan Brooks’s podcast interviews were inspiring.

My investing style is pretty hands-off. Rather, I’d be very involved at first then later hands-off. I would like to use a trustworthy and fair turnkey company that can do some hand-holding for my first property purchase.

Some questions I’m trying to figure out are:

1. How to finance the second purchase? Ideally, I’d like to buy several properties over the next few years with the rents producing income for me. However, I think it would take a while to accumulate another 20-30K for a down payment. I wonder if there is a quicker way to do this.

2. Is it wise to value cash flow over appreciation for a first property, or should they be balanced more equally considering my goals?

3. What is a reasonable cash flow to look for from a 20-25K down payment and working with a turnkey company? $1,500 per year? $3,000?

I’m happy to be here and grateful for any help! Also, if anyone is in Shanghai with a similar goal (or somewhere else with a similar goal, or in Shanghai with a different goal) just message me^^