All Forum Posts by: Alex Waite

@Mike Solak

Hi Mike my tenant covers 2/3 of my FHA payment which includes escrow. Saving for a down payment for an investment property is a good strategy. My plan was in a couple years try to refinance my FHA into a conventional and use the FHA for a 2nd property and fully rent out my first property. This way you can have a smaller down payment. Have you ever thought about that strategy? What is your 3-5 plan?

Before purchasing this property I always filed taxes myself since I was a w2 but it may make sense to get an accountant this year. Have you looked into an accountant? If so, what do you look for?

Finally!! I researched for a couple years waiting for the right time in my professional career to house hack. I bought a single family house and making a in law suite in the bottom level in a tri-level home. I’ve prepared my house for a tenant by putting in a kitchenette. I have the tenant signed and ready to move in next week.

The tenant is going to cover 2/3 of my mortgage. Nothing to brag about but not bad. I've read and listened to so much content to getting to this point but what are some of the potential next steps in the process? Obviously wait for the savings from the house hack. What are some tasks I can do now to prepare for the next house hack? (tax considerations, HELOC, strategy for next house hack purchase)

I purchased a house hack with my tenant occupying the basement only and I have built a small kitchenette in the basement for the tenant. I am wondering how should I charge or not charge for utilities. I am occupying a larger space of the house. Also, I may get a roommate on my level.

Split down the middle?

Cap limit what I will pay then split over that amount? Ex. I pay up to $100 and then we split anything over that $100.

I cover utilizes entirely?

I want to make sure the tenant has some “skin in the game” in terms of utilities.

Duplexes are rare in the location I am in so I have been looking for a split level homes. My strategy was to block the up and down stairs with a door that can be locked on both sides. The downstairs would need some work to include a kitchenette. But my main question is can I convert a single family house into a make shift duplex and rent the top and bottom?

I want to know your thoughts on having a long term tenant in one bedroom, Airbnb the master bedroom, and living in the third bedroom. Airbnb the master with a private bath and the long term tenant and myself would share a bathroom.

I want to know thoughts. Am I setting myself up for a disaster between the tenants?

Thanks Chris! 

1) $250 came from a higher loan amount which would increase my payment and then I included the PMI so that's where that came from.

2) I am not sure how people would be able to make a budget and live off of a DTI in the 40s of their GROSS income. I just find that very difficult to invest and also live off of.

3) Thanks!

I agree. I am in the process of taking the next steps and trying to see what I can qualify for which a reasonable budget. I agree that a talk with a LO will help significantly and help guide me. Thanks!

Thanks! This may be a great way to get a low interest rate on a house for 30 years. 

I am planning on house hacking a condo and getting a mortgage to afford it. I plan on living in the condo for 1-2 years and then rent it out and buy another condo. Do I need to refinance or change my mortgage on my first condo since it is going from a primary to investment property? Or can I keep that same low primary resident interest rate? Any other tips about house hacking and the financing aspect would be appreciated. Thanks!!

I recently started a new job with a base salary plus commission. I would be living off my base and the commission is just some extra on top. I am planning on house hacking my condo when I move by either finding a roommate or Airbnb if my area makes it’s legal next year (there have been talks!!).

A couple questions:

1) I understand since it’s my primary residence I could put a low down payment but that means my mortgage insurance and also a higher payment. So for the price range I am looking at that means about another $250 a month. This would make my budget very tight with my little for investing or saving. Should I put down a small down payment and have a large amount in the bank but that also means a higher monthly expense OR make a larger down payment and have small amount in the bank and have some room in my budget.

2) What is the recommended DTI (debt to income) ratio for a recent college graduate that has student loans and then also a potential mortgage, HOA and mortgage insurance. I've read 36% to 43% of gross income is the highest banks will give but in my opinion that seems very very high and no way I could make my budget work.

3) How will banks look at my income if I have a base salary plus commission. Again, base is my primary income and then the commission may be a couple hundred to 1k a month. How will that impact my DTI. Lastly, I have a side gig (1099) that pays me a certain amount per month. How will the bank look at my income and judge my DTI?

As always, I appreciate the feedback!

I recently started a new job with a base salary plus commission. I would be living off my base and the commission is just some extra on top. I am planning on house hacking my condo when I move by either finding a roommate or Airbnb if my area makes it’s legal next year (there have been talks!!).

A couple questions:

1) I understand since it’s my primary residence I could put a low down payment but that means my mortgage insurance and also a higher payment. So for the price range I am looking at that means about another $250 a month. This would make my budget very tight with my little for investing or saving. Should I put down a small down payment and have a large amount in the bank but that also means a higher monthly expense OR make a larger down payment and have small amount in the bank and have some room in my budget.

2) What is the recommended DTI (debt to income) ratio for a recent college graduate that has student loans and then also a potential mortgage, HOA and mortgage insurance. I've read 36% to 43% of gross income is the highest banks will give but in my opinion that seems very very high and no way I could make my budget work.

3) How will banks look at my income if I have a base salary plus commission. Again, base is my primary income and then the commission may be a couple hundred to 1k a month. How will that impact my DTI. Lastly, I have a side gig (1099) that pays me a certain amount per month. How will the bank look at my income and judge my DTI?

As always, I appreciate the feedback!