All Forum Posts by: Helene Vanderhaeghe

@Cameron Brioux Yay, wonderful!

Hi Chris,

Do you mind my asking what realtors you work with?  

@Anna Gaddis Totally, that would be great!  It was the trickiest part of the whole process for me, and such a relief when I sorted it out.

I'm in Canada and was wondering if anyone knows of a Canadian equivalent of the Tax Strategies book for the market here?

Update: I closed on the house and was able to bring someone in on title to qualify with a traditional lender, so the property's cash flowing nicely ($650/month).  Also, comps are selling for 60k over what I paid, so I'm glad I trusted my instincts and figured out the financing bit.  Thanks for the advice!

If I had a traditional lender (3.5% interest), it would cash flow $650/month.  With a B lender at 4.5%, it would cash flow at about $400.  With the private (9%), it negative cash flows, but if I wait until I'm able to qualify for an A or B lender, it'll take a year to work up my income and I won't find anything like this.  I know, because I've studied the market here, and the market's already risen quite a bit.  I've talked to 5 different mortgage brokers, and they all say I can't qualify for A lenders.  Based on my financial profile, a mortgage broker said I should be able to qualify for B lenders, but he wasn't able to deliver on either of the two previous houses I had an accepted offer on, despite assuring me I would be able to get B lender financing.  So now I'm making a decision to at least get in the market on a good house.

My question is about people's experience re-financing with an A or B lender after going the private route.  

I have a firm offer on my first rental property (equal parts anxious and excited)!  I waved the financing condition and I'm set to close in under three weeks.  While I thought I would be able to get financing from an alternative lender, it hasn't come through and now I'm considering private lending at 9%.  This was my worst case scenario analysis, and I'm okay with it because the house is under market value and in great shape and it's already tenanted and it gets me into the market, but it does mean that I'm making about $150 negative cash flow each month. 

My question is about re-financing at the end of the 1 year term. The issue is that I'm self-employed, so my income isn't fantastic, and I live in a city with exorbitant rents, so my DTI ratio isn't great. I AirBnB to make additional income, but the lenders won't look at that. Will it be difficult to re-finance into traditional lending?

Thanks guys!