All Forum Posts by: Dyami Pike

Our first flip netted $47k and took about 5 months from cradle to grave. Best advice I can give is to buy right! On every deal we made less than anticipated (3 so far out of 14) we strayed from our initial analysis and did the deal when the seller countered. Whereas, we should have walked away. There are (and will be) plenty of deals out there, and the market has softened. Both are great reasons to focus on buying right!

Do they report to your credit bureau? We need more info. I'd recommend speaking to a lender so you can get into details. In general, if you own more than 25% of a business you have to provide those tax returns if you are applying for a conventional loan. For DSCR, it doesn't impact the loan for the investment property because it doesn't require your personal income or DTI.

Fire damaged properties aren't good to start with, but that route is definitely a niche strategy that not enough people utilize. Everything is worth looking into, but damaged properties are definitely something worth learning about. Just start with more straightforward plays first. 

I also saw you asking questions on 1 or 2 other posts. I'm an agent here in KC specializing in investment properties. If you ever have any investing questions feel free to reach out to me anytime!

They are separate if they are through the LLC. You could also look into a DSCR loan as well if you are worried about DTI.

Personally....

I guarantee the loans even if they are in an LLC, so yes it impacts DTI

Since all the loans are commercial/investment loans they don't actually show up as debt owed on my credit report. 

Having rental income from your current property can give you a great financial advantage when it comes to qualifying for a mortgage. Most lenders will use 75% of the gross lease amount to calculate your debt-to-income ratio (DTI). If your rent is higher than your total monthly mortgage payment, then you will have a positive DTI and be more likely to qualify for the loan. On the other hand, if the mortgage payment is greater than the rental income, then you will get hit with the negative difference. It's important to make sure that you have all paperwork such as leases signed and dated in order to take full advantage of this opportunity. Good luck!

You will pay on net, but "costs" doesn't necessarily mean cash paid out. For example, in your mortgage payment, the principal you pay down is cash paid but not tax deductible. On the other hand, you can claim depreciation, which is tax deductible but not actually paid out of pocket.