All Forum Posts by: Edgar Perez

@Marcus Auerbach it was based off of my previous year (2018) tax returns, which did not show substantial earnings, since I use the deductions available to me as business expenses.

I am looking for opinion/advice/or alternative solutions for refinancing with a high debt to income ratio.  I currently have 3 houses in my personal name and have come across an off market deal.  An obstacle I may encounter is I have a high debt to income ratio because of the 3 mortgages.  That is the only debt I carry aside from 2k in student loans.  I am a single household person and have a median W2 income of about 42k gross.  My oldest rental property is from 2017 a 4unit and I imagine that income can be factored in but still have 2 other mortgages from 2018 and 2020.  I had applied for a loan a few months ago and found my debt to income at that point was roughly 50%.  My question and concern is 1) I plan to try and establish a land contract/seller finance agreement but I am concerned when it comes time to finance out I will not be able to put a mortgage on the property. 2) the other option would be to use creative financing some combination of refinance the 4 unit or line of credit plus my reserve funds plus private money but again not sure if I would qualify for refinance or line or credit.  My ears and eyes are open to feedback and suggestions.

I am in wisconsin. 

Tags: Lending Mortgage Refinance loan Wisconsin Kenosha BRRR finance loans

@Tara Jenkins thank you and I better understand now, these details and feelings were not expressed in the initial post which is what I was responding to.

@Tara Jenkins Im sorry but being from Kenosha, living in Kenisha and an investor in the area, I feel that is an incentive question at this time. I understand your financial concerns as I have the same questions but now is not the time

@TJ P. I am born and raised here in Kenosha and invest locally between here and Racine, if you are looking for post 1950 move in ready it will be tough to stick to the 150k range, however you can find deals on older multi family but it’s going to be early 1900s I see a a lot of 1910-1930. My 3 properties are within this range. If you have more specific questions about this area I would be happy to answer.

@Cj Holster

If you are local to the area I would suggest going through associated bank or educators as in the past the have been more buyer friendly.

Personal experience I have 2 properties with educators first was in 2017 and they offered a very attractive first time home buyer program, I would inquire to see if they still offer that, I used it on a 4plex.

Feb 2020 I closed on a Kenosha duplex with Associated bank with 15% down and they offered 4K towards down payment for qualified buyer.

I had a duplex denied through chase because the upper unit didn’t have carpeting and was down to the subfloor would not suggest going through them without exploring other options.

I’ve house hacked each of my : properties and haven’t paid more than 15% down. Now I don’t know how the current state of the nation has affected lending but even still I highly suggest checking out these two places if not more local banks.

@Drew Gedemer hi there I am a local investor and born, raised and living in Kenosha, I also worked in social work so I am very familiar with the ins and outs of Kenosha. The section listed earlier north and south 45th-67th street and east of 22nd ave is the area generally considered the “not great part of town” now there is opportunity and even within that zone the main area I personally avoid is 57th-63rd st & 12th-22nd ave ... usually around the fringes you can be ok depending on the type of property your looking for can be a solid C class rental if managed right.

Happy to answer any questions

@Account Closed mentioned Kenosha, I would like to include neighboring Racine county as well, I invest in both Kenosha and Racine counties and am open to answering any questions you may have about the area.

@Lexi Teifke Thanks for the reply, follow up to that would be because the building is a 4 unit and even though we assume it is coming from the newest tenant technically it could be from any of the units.  So what would be a safe way to have that conversation or would it be ok to say that, "We've received notice of smells coming from your unit?"  

Hello BP,

I own a quadplex 4 unit multifamily in a state where marijuana is not legal in any capacity (recreational or medicinal); and one of my tenants (A) has mentioned marijuana smells coming in through the vents shared among all units.  This is a recent complaint as we just moved in a new tenant (B) and prior to, there were no such mention of this issue.  Any advice on what I can or should do in this situation?  I know without hard evidence I can't make conclusions or accusations to tenant B, and at the end of the day can't control what individuals do, but is there anything I could do to maybe address or deter the issue?

Thanks in advance.