All Forum Posts by: Clay Sexauer

I currently have a SFR/Duplex zoned corner lot under contract for $35,000. In the Fort Worth market, it is nearly impossible to find a lot less than $150,000. Does anyone have experience with lenders who will lend the land acquisition and building costs? Or a lender who will only lend for the land and once I have additional cash to leverage I can start the build? My total acquisition and build cost is $270,000 and the after build value is $380,000.

@Grant Rothenburger Yes, they are open to many ideas. What are your recommendations?

My company offers to pay for professional development. Are there any courses, classes or seminars out there that you would recommend? 

Thanks @Jon Holdman! The "75%" rent- PITI rule of thumb is applied after the two years of income reflected on tax returns?

Recently my wife and I bought an investment property from an estate. This now means we own two homes, our primary residence and the investment property. Regarding the new investment property, initially, we were going to buy, renovate, rent, and hold. We soon realized that the holding costs were too because of the private money loan we are currently in, so we decided that we were going to flip the property.

But during the renovation process, I was connected with a mortgage lender who was interested in refinancing the investment property. I was a bit hesitant and thought the deal was too good to be true because I was 15 months post bankruptcy. Any discussions I have had with any lenders, they all mentioned that I would have to wait 2 years after the discharge to qualify for a mortgage. This particular lender initially agreed to do a 5 year ARM, and the bankruptcy wasn't an issue. They ended up declining the loan because they said my debt to income was too high, stating it was at 60%. Come to find out, the lender wouldn't count rental income on one of my properties because it wasn't reflected on my 2016 tax return. But the reality was that the construction for the rental property was in process in 2016, and it began producing income in January 2017. I was able to show the lease agreement and proof of income on the property, and they still wouldn't take the income into account.

In the end, I'm a W-2 earner with a good paying full time job and have two properties. The rental income currently covers the debt service on both properties (one of which is my primary residence).

Is this a typical practice, where rental income is not considered because it isn't on a prior year's tax return?

My wife and I are considering the purchase of two condos (next to each other, to do a lock off) for vacation rentals in Playa del Carmen, it's a pre-sell so we have a better price now, compared to when they're finished and we have a number of questions: 1. We will be purchasing two one-bedroom units that have a lock off between the units. Both units can sleep up to four people and if you combined the two they can sleep up to eight. We have the option of buying the units on the second floor or fifth floor. Currently, the fifth floor unit will have a moderate view of the ocean. But there is the potential of another developer building in front that may block the view. The price total difference to be on the top floor is approximately $40,000 (for both units). They have the same layouts and the same square footage. Is there a greater advantage with a higher floor unit if the view is blocked as opposed to a lower floor unit? Also, from a marketability point, is the higher floor more desirable than a lower floor from a vacationer's point of view? (One elevator, 46 condos) And lastly, would you/they be willing to pay more to be on a higher floor on a nightly basis? 2. Is someone familiar with the closing cost in Mexico, specifically Cancun? 3. What are potential red flags with the developer? How much room for negotiation is there? 4. Does anyone know of any lenders in the US who lend for these projects? Any advise is greatly appreciated! Best, Clay

Myka Artis thanks for your input. What marketing options on the corporate housing website do you find the most cost-effective if you're only trying to market one unit?

@Erin Spradlin Thanks for the response. I've considered Craigslist, but I know you can get some wacky people. So I've been a bit hesitant. What have been your best practices to screen those people?

Aside from VRBO and Airbnb, does anybody have any recommendations on where to market short-term corporate rentals? The unit would include all furnishings and include all bills paid. Thanks for your input!

@Harjeet Bhatti I have just started looking into this refi and have been shopping around. What guidelines have changed in regards to DTI?