All Forum Posts by: Lynn Z

4 properties mortgaged which means HELOC and 1st mortgage counts as one. If you are buying a residence there is no limit according to 2 mortgage bankers I spoke with recently.

Also, commercial bank lenders don't care about the number of mortgages. Relationship, FICO score etc. is what they're interested in. After all they're mostly lending with balloons in 5 years anyhow.

Your banker will deduct 25% from your rents in addition to taxes and insurance as a standard practice. Probably good to consider what a lender's view of your real take is.

I like what Dave Ramsey says about real estate as an investment. It takes "gobs" of money which he said most of the investors he knows doesn't have.

I certainly respect advice from someone who went belly up in real estate --

4 bedrooms in great areas in our city where there's a university have been renting for $1650-$2000 for some years now. A 3/1 will hardly rent and a 2/1 caps out around $750 no matter where it is.

Rooms are the hot ticket right now. Even couples looking for a room.

When things are competitive (not the case right now) we look at the house, call the lender (commercial), ask if he'll cover the price (cross collateralize the down of 20%).

Sometimes he rides by the property but usually says yes or no on the phone. Then you're free to low ball or offer whatever with no contingencies. Home inspection is written into all contracts in this state so you can always have an exit if you need it during that period of time.

Negotiate out the home inspection findings and the deal can close in 2 weeks. We prefer to just say on or before 30 days to give everyone time to breathe.

This has been a successful formula the past several years. Drives agents a little crazy but then their input is minimal anyhow.

We have bought houses in great areas sight unseen, subject to walk through later. That works if you have experience.

I'm using a home builder who's returned to remodeling to do a garage for me now at a rental I've decided to move in to. I don't have to guess at his ability to bring it off.

The realtor/flippers are one bunch that doesn't have wiggle room. One top agent said if this spring doesn't pick up he knows a lot of people that are going to be in "big trouble".

Last year's successful realtors, in town builders, etc. are really scrambling and living off of who knows what. These are the hardest working folks in the business...but apparently don't have megabucks saved for lean times.

So I ask...is anybody bailing?

Thanks I decided to improve my 1031 (building a garage this month) and move in it by Dec. 31st, live there for 3-5 years and hopefully exempt capital gains when I sell my home. Hopefully I can refi the mortgage and the garage in the high 4's or at least 5%. I don't think mortgage rates are going anywhere. I've rented in for 21/2 years so feel safe on my held for investment time.

After all except for the depreciation recapture at sale time you really don't to report the sale to the IRS.

I see some articles recently blaming the housing woes on people moving every two years and exempting capital gains. Guess Congress will work on that attitude and do away with capital gains exemption for personal residences eventually.

I really am ready to get off of the 1031 merry go round for awhile.

talked with two bank/mortgage lenders this am about the restriction on number of mortgages. Lender #1 checked and verfied restriction for investment purchases and second homes, not residential.

Broker #2 stated underwriting guidelines were to submit only requests by purchasers with no more than 4 mortgages but agreed he'd have to check that again to make sure.

I really believe it's 4 mortgages for investment purchases and second home purchases.

It is true that my commercial lender doesn't care about the number of mortgages; however, that could change and the terms are only 15-20 year balloons.

These CPA's are from Greenville, SC and claim to have IRS contacts that passed this info to them. Could this be a developing story as we say?

I'm discouraged at the lack of expertise on the subject.

It hasn't caught on here. The houses that are staged look cheap so taste has alot to do with it.

I'm torn as to the benefits.