All Forum Posts by: Charles Schmidt

I feel like this is pretty clear but I may be missing something

Thanks to everyone for the advice. After considering all options, I think I'm going to let the tenants ride out their lease. 

Their rent is $2300, and my loan payments are $2350, so letting them stay doesn't really affect my holding costs. 

Their lease is up on March 31st, and my loan is good until June 1st, with pretty minor fees to extend the term as needed. I was talking to my agent and he was saying it can be tougher to sell houses in the winter anyway, so it would probably be good to wait to list it until late spring/early summer. A substantial amount of the work needed on the house is landscaping also, and I feel like it would be impossible to get the landscaping done with snow on the ground anyway. I want it to look fresh and green when I go to sell it. 

I like the idea of not kicking them out early, so this seems like a win win, but please let me know if anyone sees a hole in this plan. The only risk I can see is the wear and tear on the property while they are in it, but I'm planning to repaint + replace floors anyway. 

Last week I got a house under contract, and the scheduled closing date is Nov. 20. The numbers look good and the house needs pretty minimal work, so I'm feeling pretty good about the deal in general, but the house is occupied and I'm trying to figure out the best way to get the current tenants out. 

Before submitting an offer I was able to look at their current lease, and it clearly states "The landlord reserves the right to cancel this lease at any time with 30 days written notice." I think I'm fine legal-wise, but I'm not sure exactly what I'm supposed to do logistically. Should I go to the house in person, introduce myself as the new owner, and deliver some sort of written notice? 

I also feel bad because they just moved in on September 24th, and if I give them 30 days then that's right in the middle of the holidays (12/20). I'm thinking about giving them until the end of January to move out, and then maybe a cash incentive if they can get out before Dec. 31. I am using hard money to fund this deal so time is money, but also just trying to be a good human because it seems like a nice family with small kids and I know from experience how much it can suck to get kicked out of your home on short notice. 

Thanks in advance for any advice on this! 

Would love to connect!

For most of this year I've been looking at flip/BRRRR opportunities out of state due to high prices in my local market (Denver area) but after a lot of analysis paralysis and fear around doing rehabs long-distance, I've decided to focus on pursuing local deals. It seems like the market here is still hot enough to support flipping, as long as you buy right.

If anyone is willing to share what is working/not working for you in today's market, I would really appreciate it! 

I really appreciate the detailed answer, that helped a lot! We are actually prequalified for a DSCR loan and plan on forming an LLC that will own the property. Since we will be personally guaranteeing the LLC though, I was told that the debt will still be reported on my personal DTI. This is turning out to be a more fuzzy subject than I thought, it's tough to get a definite answer from most people I've talked to up to this point.

Any other insight on that piece specifically would be great, but I'm also going to reach out to my loan officer and see what his thoughts are. Thanks again for the help!

Say I buy an investment property tomorrow with a partner and we split the down payment and equity 75/25 (75% him, 25% me), and the total monthly payment is $1,000. 

If I go to buy a new house hack property next year and a lender looks at my DTI, how much of that $1,000 will be added to the 'D' portion of my ratio? The full $1,000? Or Would it be $250 since I own 25% of the property?

Thanks in advance for any help on this! Partnerships are great but the logistics can be confusing at first 

 Ok that makes sense, thank you! 

I have been shopping around for lenders for a 20% down DSCR loan for a new short term rental property. One of them told me that if I close the loan directly into an LLC (which he confirmed they can do), then it won't affect my personal DTI ratio when I'm looking to qualify for future loans, specifically my next primary/house hack that I plan to buy at the end of next summer.

I mentioned this to another lender and he said this is not the case since it will be my LLC and is therefore still tied to my personal credit.

I plan to reconnect with both of them for clarification but wanted to see if anyone on here had experience with a similar situation.

Thanks!

Wondering the same thing. Thought I could clean it myself since I'm living in the upper half of the property, but quickly got tired of that so now searching for good housekeeping options

I think Littleton and Arvada are the only neighborhoods you could make that happen, the rest of Denver only allows Airbnb in your own primary residence