All Forum Posts by: Brent Tomczak

What about if my income would not support this second mortgage, hypothetically?  If you include the rental income it would in this instance, but what if I did not have any other proof of income?

thank you!!

Hello All,

Scenario:

-I obtain a hard money financing for a property under contract.

-Example property X: paid $40k, rehab $20-25k, worth $105k

-Instead of flipping the property, I decide to keep the property as a rental

-Need to refinance the property out of the hard money loan.

Can I go to a bank, and obtain a mortgage for this property, without having to put a down payment due to large equity position? What is the best way to accomplish this? Will there be a lot of obstacles? PMI? What is the logical way to go about obtaining financing for this property as a rental going forward? I would assume a bank would check to see if any liens are on the property?

Thanks for the help!

Do lenders apply the 75% rule of a lease agreement for a tenet occupied property  with the 25%DP?

Interesting. 

@Brie Schmidt  Thanks Brie, adjustable would scare the hell outta me..  

Question, lets say I do the cash out refinance, buy another house, rehab it, create another 100k in equity.  I then have to wait another 6 months to refinance and do another deal?  

Or is there a way to get a seperate mortgage on the new property. That's where I get a bit confused, because I don't want to do 2 properties a year.. 

@Jeff Dulla  Correct, the property was purchased in late 2016, and will not be rented till April 2017, so I will not have any "proof" besides the lease agreements, and checks from tenets.  

Thank you Brie!  Could you provide me some names of these lenders? I see you're in Chicago as well, so I'd assume they're Chicago-Based? 

Quick question on opening a line of credit instead of a cash-out-refinance, I believe you have to live at the property in order to do that, correct?

Hello,  

New investor here, currently in the midst of rehabbing my first 2 flat, and even though I'm only half way done, I'm starting to think about refinancing options.  I had spoken with my original lender, and she was saying that I could not use rental contracts as a form of income, because it would not be on a tax return, even if they're current.  

Is that true with all lenders? I owe $86k, home should appraise for $200k+. I'll have rental incomes of $2000+ each month, which is incredible cash flow from a $585 mortgage payment (taxes included). $40k income job. 

I would think i'll be able to qualify for a cash out refinance , but I think going forward if what she said holds true, If i get to 3+ properties my job income alone will not support a loan via the 40% rule...

What i'm hoping is that some lenders will give weight to the lease agreements.. That is my main question here..