All Forum Posts by: Drew Ramasco

I'm in the process of renting out my second property. I've had a few interested parties but nobody who actually put in an application yet.

The only couple who's ready to put an app in is an older couple and their only source of income is the husband's disability payments.

I'm not familiar with disability, but the only proof they can provide me is some old, wrinkly piece of paper that describes the benefits. When I asked for bank statements to prove the amount actually being deposited, they told me that they receive them on some sort of preloaded debit card and they don't have a way of showing it.

I don't want to disqualify them, but without proof that they can actually meet the 3x rent monthly income how can I check if they can actually afford the house?

Here are 2 screen shots of my analysis. I understand that there is a higher payment associated with the 15 year note over the 30. But what I can not understand is why does a 300 dollar payment difference make the deal completely absurd vs. amazing. 

It makes me think this calculator is wrong and I'm making decisions based on broken technology.

I need help analyzing a potential deal, I'm not quite sure why the rental calculator here shows such a dramatic difference in ROIs. 

For simplicity sake, let's say I'm purchasing a townhouse for 90k with zero down and no pmi. Potential rent is 1000/month.

When comparing loan options, the calculator says a 15 year loan at 4.75 percent would be a -182% cash on cash roi, while a 30 year loan with the same interest rate and same terms is a +94% cash on cash roi. 

Why such a huge difference when going from a 15 year to a 30 year? Everything else in the calculator is the same... Same rent, same insurance, same taxes... Only thing is length. What am I missing? 

Maybe they could Quit Claim the home into an LLC I create and then refi?

They won't do owner financing because they need the 90k chunk to buy their new retirement home. That's what they need at the least. They said if we don't the condo they will list at market value (around 130k).

I think i failed to mention that they have no mortgage on the property, it's entirely paid off. They even said they would let us secure a tenet in there before we owed then the 90 grand. This would reduce the risk of having to pay a mortgage payment with no income coming in.

My inlaws currently own a condo that they live in. They want to sell and move to a retirement community and said they would sell the condo to us for 90k. The condos in that area are selling for 115k to 130k. My wife is already on the deed because it was once her condo before we were married. They said they would sell to us at a discount as "gift" to help us build up our investment property portfolio. They said they would rather give it to us for 90k then use a realtor and list it for market value. 

Using the rental calculator on BP i came up with a 16 percent cash on cash ROI with a 10 percent down payment.

What would be the best strategy for getting this property into just mine and my wife's name, without my inlaws. They have no mortgage on the condo so they could potentially quit claim it to us but then I would have to cash out refi it to get them the 90k.

Not sure the best strategy to obtain this property. Any suggestions? Any loop holes? Or an I basically looking at a straight up purchase from them to me?