All Forum Posts by: Don Aleshire

Thanks Jonathan! Both of my properties are located in Avondale. 

Agreed on the advice on the DTI, this was very helpful.

The refinance convos started roughly 30 days ago when rates began to drop. I was in the process of leaving my W2 and wanted to get a refinance done. Obviously things have changed for the worse since my convos started at the end of Sept. I am currently at a 6.65% rate and I had the opportunity to get a 5.125% rate via refinance when I bought points through conventional refinance. Amazing deal right!? 

The day I got that quote, I decided to hold off and see how things progress. Well it has backfired since. My W2 employment will terminate at the end of 2024 so just trying to plan for the future if/when rates go down, how to best approach a refinance. 

 Excellent detail, thank you Jack! 

Great rule of thumb too...doesn't make sense otherwise at all.

Thanks for this clarification Bill.

Let me add a bit more context and see if anyone can chime in with additional advice. 

Current rents = $8,010 per month

Current mortgages = $7,650 per month

This is based on me living in one of the six units. If i rented out the other unit, I would have roughly $10,800 per month in all units. So this would NOT met the 45% of DTI based on either of these two scenarios above.

But if I take these total rents and in my stock/dividend portfolio, has anyone seen this work in the past?

The feedback I am getting from lenders currently is "each situation is different".

Ok this is great feedback Brie! I didn't realize this.

I know you aren't on the lending side per say, but follow up question.

If I have two buildings in my name with total debt of $900k and I am looking to refinance one of them that has $500k debt, would the 45% DTI be based on the total debt ($900k)? Thus my income would need to be ~$400k?

I know a lender will be able to tell me more and yes I am working with one now, just curious.

This is great to know Riley, thank you for this feedback, I will be in contact. 

Hello all, not sure if this the right location to pose this question, please let me know if there is a better category or location to post in. 

I have moved away from my W2 job and living off of investment income (rental + stock portfolio). AGI is roughly $100k per year + a range of $500 to $3k in rental cash flow per month. I have 2 three unit buildings in Chicago and owner occupy one of those buildings. The one I owner occupy I am looking to Refiance out of the 6.75% rate I have currently in the future.

I know conventional lenders require a W2 income to refinance. Does anyone have experience/recommendations of lenders who work with investors who have moved away from W2 income and can prove self sufficiency? 

Thanks in advance for any advice or suggestions. 

Thank you both for these ideas, much appreciated! 

Hello all,

Any recommendations for a solid insurance broker in Chicago? 

I got my renewals in for rental units with State Farm and my premiums have more than doubled. I have taken no claims on the property and want to start shopping the rates.

Thanks in advance! 

Hi @Jake Fugman appreciate the feedback and agreed, renting out the top floor is the least complicated situation. I spoke with my insurance agent this week and he said I would be covered with insurance even in a non conforming unit. However there are still some risks in case of a major event (fire for example). 

Thanks for the detailed breakdown on how you think about the investments/rehab's + the return. This is a great way to look at it. 

When I started this house hack 3 years ago, I wanted to drastically reduce my rent + build wealth. A legal 2 flat with 3 units was the cheapest/easiest way for me to do it in a decent neighborhood. 

Good news, 3 years later, the plan worked out! I am now trying to plan for the next 3 - 5 years. Thanks everyone! 

Thanks for this feedback @Jonathan Klemm it definitely helps. 

The Space is roughly 800 SQFT and does include a kitchen/bathroom. 7 rooms in total (all though small rooms) it honestly works great for what we are trying to do currently. 

My concern with the illegal unit is from an insurance standpoint if worse case scenario happened. You are correct that a large majority of properties in Chicago have always had these. If I were to move out, I could easily get $1,300 for the space. 

Appreciate the referral to @Michael Barbari I'll connect with him to discuss a HELOC. I have been a fan of that option in the past but due to the market last year, couldn't get one lined up.