All Forum Posts by: Allan Rosso

George Jones there's many different ways to try and acquire that information, but one of the most overlooked tactics is simply knocking on the neighbors' doors and simply asking if they know the owner. You'd be surprised how often this works.

Tariq Bahay one of my fellow Airmen was told by a broker that he couldn't use his VA loan to purchase a multi family (duplex to be exact). He asked me about it, I told him to simply google it and show the broker. "This must have recently changed" was all the broker could say. Never take an "expert's" word for it without doing your own research! Glad it worked out for you!

@Mark French, I was going to say start by finding an investor friendly real estate agent, but it seems you have that covered. I would honestly concentrate on lining up your money. Whether that means your partners are covering the whole cost, you find a bank that will help you finance your end, etc etc. You want to have that money ready to go, so that once you find your deal you can move quick before someone else swoops in and takes it! Along with that, I like what your inner voice is saying, and you could be doing all of that simultaneously. In my experience, driving for dollars/walking target neighborhoods has been very fruitful. 

@Brent Davis I'm pretty sure some banks will consider income the property is generating, as income on your debt to income ratio. Especially if there is a history of this positive income being generated. It doesnt hurt to ask the bank(s) you sit down with. 

Brent Davis have you ever considered exchanging some of your current properties for a single multi family such as an apartment complex?

@Nicholas Young, I usually put together a small property profile . Get a few important documents together about the property: MLS listing, tax records, if the units are occupied and/or property is generating income, quick breakdown of some repairs/renovations you plan on doing (doesn't have to be too detailed, maybe just outline major stuff like a new roof for example). You should definitely also have any personal financial paperwork a bank may ask for: proper form of I.D., most recent pay stub (sometimes they require a few month's worth), etc etc.

@Nicholas Young, I think your best bet is to contact whoever you think of using, and find out exactly what the process looks like for you, if you decide to go with them. I would definitely look into small local banks in the area. Let them know exactly what you're trying to do, what your personal financial situation looks like, and see if they'll work with you. You'll find these small local banks are very easy to work with, once you have a good relationship.

@Matt K. I'm in the middle of closing a small portfolio deal that will have one single loan. The banker stated that existing rental income will count towards my DTI (from a rental I already own), and he also said that the rental income the portfolio is currently receiving helps getting it past underwriting. I don't think that means that the portfolio income counts towards my DTI (since I don't own them yet), but at least I know it helps to be acquiring properties that already have tenants in them. Again, each bank might have its own rules and exceptions, so you would have to get clarification from whoever you are going through on how it works with them. Keep in mind, I'm using a small/local bank in my area.

As far as the second part of your question, I'm not sure exactly how to answer that. Personally, I would go to every small/local bank in your area, explain your situation as far as your DTI, tell them what you plan on doing as you move forward with your investing, and see what they can do for you.

@Matt K., some banks will count rental income towards your DTI when acquiring new properties. Different banks may have different rules, so it's up to you to ask the question, and get an answer for your particular situation and the bank you're working with.

@Tasha Davis,

Scenario A: If you bought a home for cash, you wouldn't have any payments at that time. Refinancing allows you to pull that cash out to use on other deals, but yes, at that point you have to start making payments on the mortgage you just put on the property.

Scenario B: For me personally, I haven't bought a home for cash. I use the interest only loan I mentioned earlier, because it allows me to finance repairs. The whole time I hold this loan, I'll be making payments on the amount I've borrowed. At that point, I may choose to pull cash out on the equity between the amount I owe, and the amount the bank is willing to refinance (usually 75% LTV on a refinance). The amount of payments isn't necessarily what is increasing, its the amount I'm making payments on that is.