All Forum Posts by: Carmelo Caceres

@Jesse Rivera

Nobody had a rant, if you’re confusing opinions with rants that’s your problem. God also gave you two eyes to read and a brain to process and comprehend information. By the way, my debt to income ratio would qualify for a conventional loan, I just wanted to use the business for it. Anybody can copy/paste information and believe that they’re real estates gurus but being creative and look for a solution to a problem is a whole different world. Many of you lack of that.

@Wenda Wang

That makes sense I would consider that route, thanks.

@Raymond J. Rodrigues

That’s true, but good or bad attitude won’t change the guidelines either. Now, I’m curious about what does being a veteran have to do with you expecting more from me? What does you really trying to say? I hope you’re not judging people by their title or opinions. How about if I tell you that as a lender I expect more from you? But since I understand that you’re following guidelines from those who have the gold I couldn’t do that, plus I’m far from being judgmental.

@Stephanie P.

Here we go, now I’m being combative and having a rant. You are excellent making assumptions on people that you do not know, other than a post in social media. There wasn't any rant on my post neither I'm saying that anybody is wrong, I’m just saying that at this time isn’t the best time to convert a profitable business to a long term lease in order to satisfied a lender. It’s not a rant, it’s an opinion but I understand that society has become so soft that even on simple post they get offended, in this case that’s you. You can keep your assumptions to yourself and just vent out your opinions which I will respect and expect the same in return. Thanks for your input by the way, I will take the best of it and disregard the rest.

@Russell Brazil

Great point, the only thing you’re missing is that those rent collection rates you are seeing are measuring the country as a whole, no by state or city. They’are irrelevant. Thanks for your input.

@Russell Brazil

I don’t feel special and that’s not the point. Banks have different rules and some of them are more flexible than others, the point is that at this moment committing to a long term rental leases isn’t a good idea. Would you answer my questions so I can understand your point of view? I'm curious to know your answers.

@Raymond J. Rodrigues

So if I’m already have a short term rental business in place generating more cash flow than committing to a lease, what would you do? Make a bogus lease to satisfied their rules? No need for that, I rather to be transparent. Do you think that leases have been stable for the last two years? He who has the knowledge, make the rules. Thanks for your opinion.

@Russell Brazil

Yes, I will repeat it. It’s a nonsense with a moratorium in place. Let me ask you; who’s going to pay a mortgage if a tenant decided not to pay rent and you can’t evict them? You might reread my original post so you can comprehend. Would you accept Joe terms and set yourself for a failure? or do you accept a term for both (you and Joe) to win? I set my terms accordingly on what I can afford for a win win situation on both part, the lender and myself. Even if is a short term rental (active business) some cash flow is better than no cash flow at all.

Hey guys, I have something to vent out and read some opinions. We own a duplex through a VA loan for two years and we started to process to refinance and get another Va loan for another investment property as a primary residence and turning the first one as a rental. We submitted applications to three different banks, two are on the approval process and one turned us down because they wanted us to commit to rental leases in order to get a pre-approval in which we completely disagreed and said no. We have been doing short term rentals and doubling the monthly income compared with what we would be making monthly with a long term lease and everything is documented. With a moratorium in place for over a year and some tenants living for free putting landlords in danger for a foreclosure, how can a lender would possibly ask for such a nonsense? We decided to go with a short term rental over a year ago for a reason and for us was the best possible decision at the time. Would love to read some opinions. Thanks

@James De Leon

Thanks for your input, very appreciated. I would say that my risk tolerance is high knowing the potential on the amount of cash flow I can get from the first property. My goal as of right now is to upgrade to a bigger property 3 bedrooms and up but it must be a property where I can get creative in two years which is the time a VA loan require us to occupy a property. In other words "house hacking". I also have been looking into a IRRR refi but like you pointed out, I realize that the best way to find out what would be the best route is looking at some numbers in order to achieve my goals. Thanks again James!