All Forum Posts by: Grayson Gist

@Wei Li

Traditionally the answer to this question on these forums is:

Waiting to invest until the market crashes does not help your creditability with banks in the future. This if you waited and do not have any experience houses will be cheaper but loans will be much harder to get.

It’s ultimately your choice. If you have a ton of surplus money you can invest some now for experience and wait to invest the rest until the cap rates rise again.

@Caleb Heimsoth

So after two full years of taxes, would they still include the mortgage in my debt section of my DTI?

@Stephanie P.

I found a portfolio lender! Will DTI always be an issue, even when I have two years?

@John Barrows

What do you mean?

Hey,

Long story short is that I’m trying to buy a second Fourplex and lender’s are quick to say no.

I currently own one SFR in Oklahoma, and one Fourplex in Kansas City that I owner occupy. My wife and I are trying to buy another Fourplex to owner occupy and banks are giving us a hard time about DTI.

I looked everywhere and read a few books and can’t seem to find the missing puzzle piece.

1. All the properties cover the mortgage and then some.... even when I am (and will) live in them.

2. I have about 1.5 years so far of “landlord” experience but only partial year reports on my tax return.

3. My W-2 job is about $80k a year.

I’ve heard the lender should just add the difference (positive or negative) to my income and not count the mortgage to my debt.

But I've also heard they take 75% the rent -PITIA and include the debt. So every property that would "break even" with that puts that DTI as 100%. Am I missing something?

Thanks!

@Sasha Mohammed

Does home possible have any weird caveats?

Hey all,

I am trying to owner occupy a second fourplex. Currently I live in one and would like to move out of the neighborhood to another one. I have a deal ready to go but financing it is getting difficult.

My portfolio currently:

1 SFR that cashflows $270 a month

1 Fourplex that cashflows $600 a month with me occupying it

Since all of that is under my personal name my DTI is really high. I'm trying to figure out a solution to reduce my DTI. My lender doesn't count a TON of the income and the FHA has a ton of rules about what I can and cannot count. Does anyone have a solution to reduce DTI? I only have about 15% equity in the fourplex.

@David Pere

We’re at about 18% after all the forced appreciation

@Brian Garlington

I’ll look into that. We fulfilled our occupancy requirement but I’ll ask. I never heard of the navy fed loan. I’ll have to look that up!

Hey all,

I have used up my VA loan to buy a single family residence that turned into a rental and a Fourplex. I'm all out of VA entitlement. I am looking to move out of the fourplex this year and into an FHA financed Fourplex.

Since I only have a year of rental history, how should I be calculating my DTI? We want to get approved for a $350k loan and my W-2 job is $70k a year, the rental income for the 5 doors is about $1200 a month.

Will it be hard to find a lender willing to work with my DTI without two years of rental history? Thanks!