All Forum Posts by: Slaiman Atayee

Such dramatic YoY rent comp increases are uncommon unless you're in a booming city. IMO there's not many things more valuable than a good tenant that leaves you alone and lets you focus on your business so i'd say find a middle ground with them. In the long run its not worth chasing them off for a few extra bucks. We write an automatic 5% rent increase into every lease so that way it feels more incremental to the tenant and the expectation is there but we don't always enforce it so sometimes it feels like we did them a favor. As someone else said make sure you understand increase laws in your area. Good luck!

I wouldn't overthink it. We charge a refundable pet deposit on our short term rentals. If you're really concerned you can add the pet rent. 

Everyone has made some great points and based on the numbers assumptions you gave i get the same cash flow you did and its not great. This could be more of an appreciation play which is fine but we obviously don't know your market. I also agree you should only worry about yourself and not what anyone else is doing. I will say that I know you want to be conservative but unless you're finding a way to boost your income (e.g., going the STR route) its going to be hard to come up with attractive return numbers with such conservative estimates for OpEx/CapEx/Vacancy and with what appears to be relatively high taxes. I'm all for being conservative there's things you can do to minimize those inputs such as buying rehabbed properties which won't need CapEx for a long time. Also i'm sure you can find PM for 8% vs. 10%. I have a local agent in one of my out of state rentals doing it for 5%. I did all the front-end work of writing leases and creating our listings and she just deals with the stuff on the ground/communicating with tenants.

To save time on running analysis I would either find a trusted template or build your own and refine over time (which helps build your understanding). This way runnig numbers will take you seconds and you won't second-guess yourself. Good luck!

Quote from @Lexie De Stefano:

My Arlington Community FCU experience was awful as well. About 100 days to close, with me calling at least once per week to check the progress...squeaky wheel didn't really help. Taxes/fees (for an Arlington county property) cost about $700 at closing, and not folded into the loan. Overall an annoying process, and I probably would refrain from them in the future. However, their banking system is pretty user friendly on the backend and it's been pretty smooth.

Wow, really appreciate that input. I wonder if the 100%ers TFCU/AFCU get that many more applications which drives the delays. I’ll turn to the others at 95% LTV in this thread. 

Quote from @Tom Harkins:

Quote from @Slaiman Atayee:

I just got through a grueling 3 month process with Tower FCU which offers 100% LTV but I was rejected today because I stated the purpose of the LOC was to purchase an investment property. They would only accept my application if I said my intention was a rainy day fund, home improvements, etc... something personal. I'm going to try Arlington CFCU instead as they appear to be the only other FCU which offers 100% LTV.

Also the question above about appraisal - I refi'd my house in January although I sent that appraisal to them they forgot and did a drive by anyways (I know because I saw them taking pics).

@Slaiman Atayee I'm sorry that Tower FCU strung you along for 3 months only to reject you for a question you probably answered on the initial intake application. That's a big breakdown in their process.

Thanks for sharing this information though. I was suspicious of the intent behind that question ("What do you plan to use the HELOC for?"). On my HELOCs, I answered it as generically as possible, or put Other. They don't need to know what I plan to use it for, not to mention the answer will change over time.

Honestly its my fault for being naive and not thinking more about my response. Lessons!

BTW for anyone that used Arlington FCU - do you have an idea on timing to close? Don't want to get strung out for 3 months again. 

Quote from @Nick Shri:

Quote from @Slaiman Atayee:

Quote from @Nick Shri:

TowerFCU is slow as slug, 90 days to close on heloc! When I applied last year, both TowerFCU and Nextmark were in play, TowerFCU had little better interest rate and closing time was same for both 60-90 days. Things may have changed in year.

Absolutely painful process including not hearing from them for 7-10 days at a time despite responding to all requests immediately. All to get rejected lol. I chose them initially because they cover all closing costs vs Arlington where you have to pay recording fees/taxes. 

Most CUs will pay for closing on HELOC. It costs them roughly between $500 and $1000 for closing, and they hope to make that in interest from you. I learned there tons of small CUs in DMV that offer no-closing-cost HELOC after I applied with TFCU, and some banks offer that too but interest rates could be higher. Upside - quick close. If you are still hunting call TD Bank, they were closing in 2 weeks last I checked.

Maybe you're right but TFCU was the only one I saw that covered all closing costs outright. Otheres mention paying up to $1k or like Arlington FCU paying everything but taxes/recordation. Thanks for the TD Bank referral. Any idea on LTV? On the site I only see them stating "Maximum combined loan to value (CLTV) is based on..." XYZ factors. If its in the 80/90's I won't even bother.

Quote from @Nick Shri:

TowerFCU is slow as slug, 90 days to close on heloc! When I applied last year, both TowerFCU and Nextmark were in play, TowerFCU had little better interest rate and closing time was same for both 60-90 days. Things may have changed in year.

Absolutely painful process including not hearing from them for 7-10 days at a time despite responding to all requests immediately. All to get rejected lol. I chose them initially because they cover all closing costs vs Arlington where you have to pay recording fees/taxes. 

I just got through a grueling 3 month process with Tower FCU which offers 100% LTV but I was rejected today because I stated the purpose of the LOC was to purchase an investment property. They would only accept my application if I said my intention was a rainy day fund, home improvements, etc... something personal. I'm going to try Arlington CFCU instead as they appear to be the only other FCU which offers 100% LTV.

Also the question above about appraisal - I refi'd my house in January although I sent that appraisal to them they forgot and did a drive by anyways (I know because I saw them taking pics).

Thanks Steven! I’m good on the DTI, I was more asking for the cash required to closed. If I have large deposits being made in recent months bank statements from the activities mentioned above I want to be able to explain them properly so they know where I’m getting the money from close. I should also mention it’s an investment property that I’m closing on. 

Quote from @Steven Goldman:

Good Morning: Slaiman: If you are not reporting that income then it will not be accounted for in a full document loan. DSCR lenders do not care about your income. So long as you have a 650 or so credit score and the rent covers the principal interest taxes and insurance and condo fees than they will lend you the money. They do require 6 months cash reserve. Also the better the credit score and coverage ratio the better the rate and LTV. Good luck.

I'm a salaried employee for my company and have a standard w-2 for the majority of my income but in the last year i've started doing things on the side like the occasional wholesale deal or some remodeling work, both of which I get via paid cash or wire. For a lender (and the underwriter), what do I need to "verify" those other non-standard sources of income? 

FYI - I have several properties already and have been through the standard mortgage/loan process several times with only my w-2 income in play so not looking for standard lending advice in that respect. I googled the subject above but can only find stuff related to standard income

Any help is appreciated!