All Forum Posts by: Farris Gosea

I have no other debt apart from 250 a month car loan. 

11,000 payments on the rentals. 

25,000 in income from them. 

But if they only accept 50% of that... then I’d be at 12,500 so I have absolutely no chance of this loan haha. 

Yes. Understood. But if the 40,000 is rental income. They are only currently accepting 50% of that correct?

So they would only actually accept 20,000 of it? Putting the ratio at 50%?

Seems outrageously tough to qualify based on that haha

Appreciate the fast response! 

Just so I'm understanding this correctly. If my gross income were 40,000 a month from rentals based off current leases. And my expenses were 10,000 a month.

They would only count 20,000 of that income. And from this my DTI ratio would be right on 50%? 20,000 income, 10,000 debt?

Or if a payment is 1800 and 500 is principal, does the 500 go towards "debt" or "income"?

 

FHA loan,

new debt to income ratio banks look for since coronavirus? I saw 50%. But I also saw this isn't a strict number and can move based on a few factors? Such as cash reserves and monthly income left over from rents? What else can help?

I am meant to be qualifying myself based on rental income of 20 units I own, to buy and live in a four unit close to all my properties, but I think its tight. It has been with underwriting for a few days. 

Any suggestions on extra things that could help right now, I have a pretty good relationship with my lender, he's done a lot of deals with me and keeps trying to assure me we will get this done. 

Yes, insurance companies will cover vandalism, make sure you ask and add it on to policy. Not sure why no one is answering your question lol

So once they can't afford the 400 dollar rent where are going then? Heading for eviction. Try B rated areas and I agree with you, because at least they can downgrade. C and D CANNOT down grade. So after your house next stop is homeless. 

Rents won’t start to add up. Way tougher to find tenants when rent prices are higher. And higher rents are first to get hit with an economy tank. 

70k to 100k per door. 

Big multi family would be good. 

Or single family is ok if it works out. Buy for 80k rent for 1000. But when you scale have to buy larger buildings

If she likes money and financial freedom she will listen. I am 25 wife is 22, we own 12 units and a 100k primary residence, nothing special, share a car, 20 dollar wedding and basic rings. We value our future freedom. We both work hard now and invest everything we make. Get her on board man, but get your income up also. Good luck and feel free to message me with questions. Its probably better if you just have a plan and do it. My wife may not have been on board if I didn't know what I was doing.

There is nothing else to say. The % returns are better when you leverage than you own with cash. EVERY major US company uses debt to scale quicker and grow. It is sad that people needed to attend an event to learn that banks aren’t giving someone’s 480,000 for 20,000 back over a 30 year period lol. The American economy actually couldn’t function if that’s how it worked. How is this news to anyone?