All Forum Posts by: Dan Cerempei

Hi Steve. Just went to the bank today again. They asked for my income tax return. Since I filed my 2021 taxes on 1099, they asking for a 2 years of 1099 , where in 2020 I worked on W-2. Even when I will file my 2022 taxes, I will not be able to buy a rental with my 1099 cause my DTI is to high, since my primary home takes a big chunk.What should I do? Create an LLC?

Thanks a lot!

0 Votes

Originally posted by @Ralph DiBugnara:

Hey @Dan Cerempei, what are your investment goals? Will you purchase as second home or investment property?

Hi @Ralph DiBugnara,

As an investment property.Tallked to 2 different banks, with a same answer ,,,5% interest rate.

1 Vote

Trying to buy an investment property ( residential SFH).Bought my first house 5 years ago. Decided to buy a bigger house, so purchased 2nd house and the 1st I'm renting it out, which is doing well. Now Im trying to invest in a rental ( which will be my 2nd rental),where banks are telling that it will require an investment loan at 5.2%, where both of my homes are at 3%. Any suggestions how do I finance my 2nd rental at 3% with 20% down,,,or is not possible?

1 Vote

Originally posted by @Carlos Ptriawan:

I had the same problem about 6 years ago and I choose not to sell because I know appreciation is huge. Now price is move 500K between 6 years ago and today. Now My problem is I have to go back to that house again otherwise I have to pay huge tax :) LOL

So depending on your scenario, check your zillow, sometimes it is OK not to sell if you know appreciation ahead. I can check for your address and count the probability of success.

14033 Waterford Cir, Gulfport MS. I will appreciate that.

0 Votes

Originally posted by @Bethany Turon:

@Dan Cerempei I have traditionally held onto even marginally positive previous residences for several reasons:

- You’ve already got really good mortgage terms. I look at this as a long term investment similar to putting into a 401k, where you have an opportunity to still build net worth over time due to appreciation and mortgage pay down that you’re not having to do, plus the tax benefit you get from depreciation.

- Typically these types of homes although they may cash flow less, tend to be in nicer areas, attracting a good quality of tenant, requiring very little R&M, and appreciating much better than the typical multi-units over time.

What town/city is this in? I would look at some of the specifics of the market as well when making this call - Since it is a buyer’s market, you want to look at whether you’ll plan to hold long term (5+ years), because if not, it is definitely a good time to sell

is located in Gulfport, MS

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Cause I'm new in this field I was thinking to hire PM for the first year. Is 160$ a month plus 400$ initial payment for pics and docs.

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I'm in process of buying my 2nd property as my maine residence. Thinking to rent my 1st property. Just numbers don't really add up. So:

1) 1200$ mortgage payment

2 ) extra 100$ a month cause we are loosing homestead exemption (from 1400$ going up to 2600$)

3) Aditional 50$ for rental insurance a month

4) Property management 10% of 1600$ of expected rental amount = 160$

MATH IS : 1600-1200-100-50-160=90$

I know, i may loose money at the end of the year after repairs...But my view is to gain equity and market value gain,,, looking as a saving account/ retirement.

Option 2 is to sell it and profit 30k and maybe reinvest in a better rental oportunity.

Thanks for y'all answers. Exited to be a new member of the bigger pockets!!!

3 Votes

I'm in process of buying my 2nd property as my maine residence. Thinking to rent my 1st property. Just numbers don't really add up. So:

1) 1200$ mortgage payment

2 ) extra 100$ a month cause we are loosing homestead exemption (from 1400$ going up to 2600$)

3) Aditional 50$ for rental insurance a month

4) Property management 10% of 1600$ of expected rental amount = 160$

MATH IS : 1600-1200-100-50-160=90$

I know, i may loose money at the end of the year after repairs...But my view is to gain equity and market value gain,,, looking as a saving account/ retirement.

Option 2 is to sell it and profit 30k and maybe reinvest in a better rental oportunity.

Thanks for y'all answers. Exited to be a new member of the bigger pockets!!!

1 Vote

All Forum Posts by: Dan Cerempei

Dan Cerempei has started 3 posts and replied 8 times.

Post: Financing a rental property

Post: Financing a rental property

Post: Financing a rental property

Post: Renting or selling my 1st house

Post: Renting or selling my 1st house

Post: Renting or selling my 1st house

Post: Renting or selling my 1st house

Post: Renting or selling my 1st house