All Forum Posts by: Armando Montrond

Thanks all of you, there is some great advice here. I have a really good fico (730) but i think the best thing is just save for the higher downpayment. would love to know where you are getting 15% down on a DSCR, thats pretty great! A bit of a waiting game till the new taxes are done but hopefully can come out on the other end with another property somehow.

you can only imagine how rattled i was when lenders were saying they wouldnt count it unless I had 2 years of rental income history. it is a legal 3 family. I could refinance and get another FHA but then I would still run into the same problem where the DTI would stop me from getting another property. My student loans arent that expensive, about $300 a month, paying off that balance would be an option but thats money I would rather use for capital. Maybe I gotta keep hunting around for other lenders

True, DSCR is a great option, I think my main issue was that I was trying to have a lower downpayment. 20-25% on a 400-500K multi is tough for a newbie without raising funds from others 😂 but that is a good option thanks for the reminder on that

Here is my current situation. 

I currently am house hacking a 3 unit home in Worcester MA. (FHA at 2.25%) I have lived here for 1 year and want to purchase another property with a low down payment. I

have found credit unions will do 5% down on 1-2 units but the banks wont use my rental income that i earned this year because I don't have 2 years of rental income history. 

Even if i had 2 years of rental history they will only take between 55-75% of that income.

I don"t have a lot of debt, I have my mortgage payment, and a student loan totaling 3900 a month. 

I W2'ed 140k last year, so if that max DTI is 45% (5,250 allowed per month in debt) and I already have 3900 in debt, I cant have a mortgage payment above $1,350 PITI? Am i doing this math right?

So even if i put 20% down on a property, with 5-7% rates, the max purchase price I can do is $265k and with a 5% down im looking at 125k which is pretty damn near impossible around here. so looks like I would have to look for out of state investment property which is not ideal. Is my rough math right? How are people buying multiple properties but getting around the 45% dti? 140K a year is not small money either so its wild that I couldn't qualify for anything other than those incredibly low amounts

Am i looking at this the right way? Is there other ways to get this done (other than out of state investing) This is mainly a venting/frustration post cause I am trying to build out my portfolio but seems like this is a tough spot to be in especially if a lender is not willing to look at the rental income that will be on my tax returns

well here’s the answer I got…guess I’ll just use these garages for what they’re intended for. Putting my car and junk I don’t use in 😂 my tenants also have the option to rent it for $150 a month if they want the additional covered spot. I feel like this is something that needs to be changed in Worcester, other cities and towns in massachusetts are allowing them.

Hi BP,

Curious if anyone knows if Worcester allows garage to living space conversions? I Currently have a 3 family here that I am house hacking, and it has a detached 3 car garage that is used mostly as storage. I would like to explore converting it to a 1 bedroom apartment and then renting out the current unit i am in now, and moving into the converted garage. Before I go too far down a rabbit hole of thinking of ideas and what not I was just curious if any Worcester investors have converted a garage to a living space and if the city allows that?

Also if you have done it what was the overall cost for you and how did you finance it? I don't have a ton of equity so a HELOC will be out of the question most likely

(I also emailed the city but I feel like my BP fam will be quicker 😂)

Hi There quick question, for people that are analyzing deals are you factoring in a potential market downtown? If so how much are you using for your calculations to see if a deal makes sense to move forward with even in the event of your market down turn percentage? 

Hey who from massachusetts is going to BPCON? Would love to meet up and get to know fellow investors! 

Hi there! I am looking for a solid handyman that i can work with in the Worcester area. I need some window screens built and installed, and while im sure its an easy job I dont have the time in the day to get those done so looking to get help. If anyone has any recommendations please let me know! I tried Angi and Houss and they both were duds and nobody responded.

I invested in Worcester recently and honestly every where I look around the city seems like good options. I am in the Quinsigamond area right around the corner from Holy Cross, and all the major highways are right near me. I would say Burncoat/Tatnuck area is where you will find more of your higher end single family homes if thats what youre looking. If you're looking for Multi Family, honestly like others have said being near one of the colleges is a good idea (theres 9 of them), Shrewsburry street is where you will find more of the restaurants and bars and its close to downtown. Like Brian said, find an agent and go for a ride around and learn about the area. Worcester is going through a major revitalization its been pretty awesome to see.