All Forum Posts by: Jon G.

Thànks both of you for the responses.

Andy - What I meant to say was I had read that I needed to have 25% of the rental property paid down in order to count the r entrees towards my income in the DTI. I'm reluctant to make a big extra payment as that would hurt my ROI and set me back buying another building.

Brianna - Thanks for the offer. I sent you the address. Nice hoods! I couldn't afford north center when I was looking. Definitely saw a lot in Albany and Irving park, but I I ended up finding the best deal at the time in Logan square. I'm interested in Avondale and east Humboldt for expansion.

I would definitely be interested in speaking with some creative lenders if there is no conventional option for me.

My business partner and I purchased a 3 flat in Chicago for $325k about 3.5 years ago. We are currently getting $4300 in monthly rent - Soon to be $4600. We formed an LLC immediately after purchase. We have been reporting ALL rental income in taxes and should have good records to prove this.

At time of purchase, we FHA'd with only 3.5% down (4.5% IR) as we both lived there in one of the units. Currently we have something like 9% paid down so LTV is no where close to 25%. My understanding is that in order for this property to not count against us it needs to be 25%. Making a big payment to get to 25% would eat up a large chunk of cash we would like to use for the next down payment.

I also own a condo with my wife - and between the two buildings I don't think I have much excess credit to obtain another loan. My partner has some, but I think he would like to buy his own personal residence in the next couple years and would prefer the next place we buy not prohibit him from doing so.

Questions -

- What are my options for obtaining a loan on another multifamily (4 or less units) building?

- Who should I be talking to?

- Advice?

Thanks everyone in advance for your responses - Let me know if you need further details.