All Forum Posts by: Andy Ferrell

Looking for recommendations from out of state investors. Who do you love and why? I have a few SFH in decent areas and am shopping for property management. I've been through a couple and know what I want:

• Timely, Error Free Accounting
• Transparent Reporting
  
• Proactive Maintenance - Not Just Repair
• Reasonably Accessible
• Places Solid Tenants at Market

I found it in their last communication to lenders here: 

http://www.freddiemac.com/singlefamily/guide/bulletins/pdf/bll1512.pdf

Page 2:

Rental income

Effective for Mortgages with Settlement Dates on or after October 26, 2015, we are removing the requirement that the Borrower must have a two-year history of managing Investment Properties to use the income from a subject Investment Property or other Investment Properties owned by the Borrower for qualifying purposes...

My lender told me today:  "In October Freddie is changing their guidelines that even though you have no rental income history, we CAN use the rental income which we have not been able to do for a few years. "

Can anyone confirm?  Sorry if this is a repeat, but I could not find...

Thanks, Andy

Wife and I are splitting.  My child support payments will be about $1,000 per month and are made up of basic child support of about $380 and the rest is work related child care.  My Ex and I both work full time and will be splitting the cost of daycare and after school care for our kids.  Tennessee law requires my share of the work related child care costs to be included in the child support payments.  All this is documented on our child support worksheet.

So, I am refinancing our home to buy her out of her share of the equity we have in the house. The lender is considering the full child support amount ($1,000 per month) as debt. I have not challenged him because my DTI (36%) will be ok for this loan, but I am worried about qualifying for the next loan I need to purchase a rental property later this year.

My question is would it be reasonable to state my child support as $380 for the next loan?  Any other thoughts or advice?

At one time you could buy EE Savings Bonds with credit cards (not anymore).  I bought $15k worth on a credit card to generate points.  Then I transferred the cc  balance to another 0% card until I could cash out the bonds, pay off the balance and repeat. 

One critical note:  You must make minimum payments on the credit cards even though the rate is 0%.  If you miss a payment, the 0% intro rate is done and becomes 20%+.

@Robert Sepulveda Thanks.  I had not considered being able to assign the heloc to the investment property on my balance sheet.  That make sense.

I'm refinancing my primary residence soon to pull out some equity for reasons that are irrelevant. I also plan to purchase my first buy and hold property later this year and I will probably need to use the additional equity in the primary residence to make the down payment on the investment property. I hope to buy a SFR or Duplex and probably use a conventional 30 yr fixed mortgage with 20% down. The price range for this type of investment property in my target market is $100k - $175k. I'm weighing 2 options:

1) Take maximum equity out of my primary residence in order through the refinance to secure the cash for the down payment on the investment property (and potentially a second investment property next year)

2) Leave some equity in the primary to keep the payment lower, but then use a HELOC later to finance the down payment on the investment property

Some details:

Value of the Primary Residence: $320k

Current Mortgage Balance on Primary:  $155k

Equity coming out regardless:  $50k

I'm looking for feedback on what folks see as the advantages of the HELOC vs. having a higher balance on the first mortgage. Thanks in advance.

Howdy - I've been a member for some time, but only recently developed serious interest in RE investing.  I'm going to start with a buy and hold strategy and see where that goes in the next few months.  I have some savings that I hope to leverage and buy 2-3 SFRs in the next 18 months to get started.

My question: I have my eye on a VA owned property for sale that is in need of a major face lift. The ARV is 240k. Assuming it needs $40k in rehab and I was able to buy it for $170k, what is my 20% down payment for a conventional loan if the house appraised for $200k today? Is it $10k since I bought it for $30k less than the appraisal or would I need to bring $40k down (or something else)? Assume I have great credit and a good, stable income.

Thanks in advance, Andy