All Forum Posts by: Ed Wood

Any So Cal investors out there have rehabs ready to sell in the next 30 days?

I can't remember how to do the @name thing so hopefully you get this reply.

You're being taken advantage, of lenders do not need to pull credit to quote you a rate. With the above list of items and they 100% for sure have enough information to quote you a rate.

may work if it make sense to a underwriter its best to keep as close to the title as possible.

tent it?

The requirement is 2 years same line of work. So if your a cop and went to work as cop for another department that is ok, if your a cop and went to be a doctor that would not be ok.

Coming up on your 4th property any financing adjustments need to be made thought out now. I see a lot of investors overlook this. You're allowed 10 properties owned and fianced including your primary. The problem is you can only pull cash out owning and financing up to 4 properties so your 5th -10th property you won't be able to leverage your existing properties. The goal being to have one SFR and nine 4 units maximizing your loan allotment.

Sell anything less than 4 units, buy three 4 units, then cash out those to launch you into the 5th+ property.

I think it's affordability SFR's are much less than 2-4 unit properties.

1. You'll get a much better interest rate with 25% down vs 20% down on investment property.
   
2. DTI must be under 50%. This includes your current house PITI, your payments on your credit report like cars and credit cards AND the new subject property PITI. For example if you make 10k per month and all these payments add up to $4900 you would be at a 49% DTI.
   
3. To use the rents from the subject property you must have 2 years landlord experience as evidenced on your schedule E from your federal returns. If you have two years landlord experience then you will be able to use 75% of the gross rents. The underwriter will ask for a copy of the lease and may ask for a paper-trail of the tenants deposit. And of course it must be arms-length tenant meaning not a relative.

I believe you're talking about your Schedule E? The way I see most returns when there are separate buildings the CPA takes the depreciation as the one lot (or APN). Just like the lender views the property as a 4 unit vs two duplexes, you just happen to have two buildings is the difference.

anyone? Before I run a CL ad.