All Forum Posts by: Becca Summers

Have you thought about what the tax implications would be? If you owner occupied for any two of the last 5 years you could sell it without capital gains. That is where I would base my timeline. If it's been a rental for longer and you'll pay taxes either way then I'd debate how much I liked being a long distance landlord. 

I have the cash reserves for each property. I know mortgage one is negative cash flowing because it wasn't purchased right I've debated selling it but it has a 20 year mortgage so I can't decide. 

Can I count the rental income from the basement appartment in my home? 

@Jeremy Williams

Mortgage 1 payment $1,333- Rent $1350

Mortgage 2 Payment $1,108- Rent $1,400

Don't have yet Mortgage 3 Ball park $800-$900- Rent $1,350

One car payment $323.

My husband and I currently own 2 homes and have 3 years of rentals on our tax returns for the one home and we live in the other. 

What I'd like to ask is I'd like to buy two homes this year one for $170,000 that would rent for $1,350 and a new single family for my family for $435,000 and turing our current home into a rental that would rent for $1,400. Our W2 and 1099 income is 115,000. (This is averaging my last two Yeats of sales)

Mortgage 1 $190,000- rent $1,350

Mortgage 2 $170,000- rent $1,400

Mortgage 3 $170,000- Rent $1,350

Mortgage 4 $435,000 (we would put in a basement appartment later so no rent yet)

Would this work with our DTI?

How I explain this situation to my buyers is the appraisal idls done to protect the banks interest. The bank just wants to know that the home is worth at least x. If the appraisal comes in to high the seller might want to cancel the contract if the appraisal comes in to high.

You'll see on distressed properties how hard appraisers try to pull their appraisal down by using comparable that are not similar to subject properties. Seems like your appriser did that by comparing your duplex to a single family.

Yes the bank will not let you do a cash out refi unless you have 20% in equity.

Example I have a mortgage for $170,000 my property is worth $245,000. The bank will let me do a cash out for 80% of the value being $196,000. As part of the cash out I would pay off original mortgage of $170,000 and keep the rest which is $26,000. So my new loan would be $196,000 and value $245,000 leaving $49,000 in equity that I can not touch.

I would be willing to help a investor find more deals if they paid for and set up mailing campaign. I would be willing to answer the phone, evaluate properties, meet with sellers and pass any good properties to my investor. Then keep others that dont meet criteria to list on the MLS

Another thought, I will tell investors about deals and once they pass up 3 or 4 without giving me good feedback of why they didn't like it pass them off as not serious. 

I'm not in your area but to answer your question. I'm always trying to find more clients and repeat clients. So when I bring a deal to an investor if they buy it I want to the chance to relist the property. I understand you wouldn't have to use me so I need to add value to the investor so I keep my investors updaded on the market and take them to potienal competition to get an idea of what others are doing.

Referring your friends and family would alsohelp.p 

I think it's completely possiable however you won't find them on th MLS. You'll have to network find owners who want out of the business. Or find properties that are very distressed. We have a strong market in Utah with a lot of "investors" who don't run the numbers and over pay for properties which make them hard to come by.

If your not the first offer accepted it's a waste of your time. Because the seller has accepted and offer but the bank has not they still appear on the market but are pretty much under contract and negotiating. Unless you want to write tons of offers and be in back up position.