All Forum Posts by: Chris Roberts

Quote from @Ryan S.:

Thank you for your response. Considering Naples is a seasonal market, I've been contemplating the possibility of renting out my house during the high season for $25,000 per week. By splitting the cost among two or three families, it would be much less compared to booking multiple hotel rooms for 10 plus people in my location. I'll do more homework with some luxury sites around me. 

There are houses for rent on Bonita Beach for that price. I agree that when you split the cost with other families, it's comparable to smaller rentals or hotels.

We have a custom carpentry and remodeling business in Bonita Springs after building custom homes for many years--Gulf Coast Carpentry. Look us up on Facebook if you ever need work done! 

What's a typical max DTI ratio when buying a primary residence? I have heard you can go up to about 50% DTI for just the housing payment if you have no other debt but I've also heard the front end ratio is much lower even if you have no other payments.

I have an STR that shows income on my tax returns for 2022 but obviously not 2023. Are there any specific lenders that will use 1+ years of income so the mortgage on the STR isn't killing my DTI ratio?

The banks I've called just give a generic response of "go online and apply". 

I'm trying to get a HELOC but most banks are requiring at least two years of income on tax returns for the STR, otherwise my DTI ratio is too high. However, my DTI ratio is fine as long as the banks are counting the STR income.

Do DSCR loans affect personal DTI if they are in an LLC?

If so, it seems like having a few DSCR loans would make it difficult to qualify for a Heloc on a primary residence or even a car loan, for example.

Also, are DSCR loans recourse? Could the lender come after your personal assets if you were unable to make payments?

If so, those could be exposing individuals to large amounts of risk. 

I'm trying to get a HELOC on my primary residence but am having trouble because my DTI is too high due to the mortgage on an STR. It has significant rental income for 2023, 2021 and 2020 (none for 2022) but since it doesn't show two consecutive years on tax returns, they won't qualify the income. Is this standard across the board or are there lenders who can do this?

I've had my eye on a rundown house in a neat neighborhood. The lawn is overgrown and the house needs TLC. I was able to get in touch with the owner a few months ago to see if he wanted to sell it. He gave a price range and I told him that it sounded reasonable and I would like to see the house. The problem is that he ghosted me. My guess is that the he doesn't want to show it because it's full of stuff, needs work, he lives there, whatever but it would be a great home to own. We both seem to be in agreement on what it's worth and he seems to be open to the idea of selling. My question is how would you approach this to get him to sell the house? 

We have a short term rental that we bought at the beginning of last year and it rented well in 2022. The condo complex is undergoing renovations and it won't be available to rent until late 2023 (so it won't show any income for 2023 until later this year) but I'd like to get a mortgage soon. Can the income from this property be used? Any insight on this? Thank you. 

I'm looking to pull some equity out of my primary residence with a HELOC or home equity loan. However, if I find an attractive property, I would buy that and move into the new home and rent the current one.

Two questions: 

Would the HELOC or equity loan need to be repaid before converting the home into a rental?

Is it possible to get an HELOC or home equity loan based on current appraised value (we've owned it for less than two years)? One lender told me they would need to go by the purchase price since it was bought less than two years ago. This would obviously not work because we have done extensive improvements.

Thank you! 

I'm looking to rent out my current home and finance a new primary residence. Can a lender use future rental income determined by an appraisal to potentially cover the previous mortgage?

I have heard two different things:

1) No, you must have a signed lease with security deposit, etc.

2) Yes, you will get a rent appraisal and that will be used to determine future rental income