All Forum Posts by: Ian Davis

I'm down, but not out. I purchased a house in a good area (affluent area), but it also drained my capital reserves. I need to rent a room or two out in order to recapitalize my reserve fund. Anyhow, I need some good solid advice as to the best approach at finding a responsible renter. In short, what screening process should I follow. Any/all advice will be greatly appreciated. Thank you.

I'm on a fixed income. I'm interested in purchasing a rental property. Do I have other lending options besides conventional loans?

My first rental property's loan is guaranteed by the federal government (VA). They don't know I'm not residing in it of course. I have a second property I'd like to make an offer on, but am unsure as to my financing options given my circumstances. The only loan-type that comes to mind is "conventional" or "HELOC". If conventional is my only option going forward, what can I expect to pay in up front costs (10%, 15%, or 20%)? Need some advice in a bad way.

Jacob, great post. But what type of loan products should an REI use? What are some of the more legitimate, often used, loan types for subsequent properties? Conventional? HELOC? I just want to develop a strategy going forward. If I'm going to create leverage I need to know the steps I need to take in order to create it. Thanks.

How do you finance a second property when you're on a fixed income? And I can't use my FHA/VA, because for those loans I have to live in the property. Is conventional the only way to go? There's a second property I'm interested in, but I don't know how to finance it. How do all you investors get banks to allow you to carry several mortgages? I'm confused here.

I'm a newcomer to the real estate investment world. How do you finance subsequent properties when the bank takes into consideration the borrower's "DTI" ratio? Oh, because of the building equity in the properties, right? Anyhow, how do you establish this momentum when you're just starting out, and you have no equity? Is my only option to personally guarantee the loan? And would it have to be a conventional loan type?

I read another post here on "BP", and this user said eventually I could establish a corporate entity, and the bank could use the business as collateral against the loan. 

I keep thinking to myself the following statements: "Somebody else out there already scooped up all the great bargains."; "There's no more income to be generated."; "I won't be able to rent it out."; and "I'll default on the mortgage." Please tell me this is just a case of the "chicken little (s)". I think fear is setting in because I don't know how to finance a second property, with having very little equity. I suspect I'll have to vouch for it personally, right? If so, what's the down on a conventional loan? Or, do I have other financing options? I'm on a fixed income (disabled vet). Any ideas here? Love this site. So much wonderful information. 

I ran the numbers on a property I am considering as a rental. If my assumptions are correct, and some may not be, seeing as I am unsure as how to best estimate certain ratios, or percentages. Anyhow, if my assumptions are remotely closer to accurate than not, the report indicated a Cash-on-Cash ROI of 52.93%. Is this realistic or have I completely misjudged one of these values within the rental calculator? And if anyone has any advice on how "best" make these predictions that would be great insight too. Thank you all.

"If we control our downside, the upside will automatically take care of itself."

So, as a newcomer to the real estate investment game would you say my only immediate options are the following:

1). personal guarantee (relies on personal credit file)

2). Conventional Loans (which require higher down payment levels)

3). Establish a "Business Entity" for the sake of building a real estate investment company, who can eventually "stand on its own record", perhaps with a personal guarantee in the short-run<----How do I begin this process? Costs? How quickly can the entity be considered for legitimately engaging the credit markets? 

I'm looking to control my downside as much as possible here. The second property will generate some cash flow. I think around 8.8%, which is better than the banks, but depending on who you ask, not as good as the equities markets. What do you think my next move should be in terms of considering a second property? What strategy/approach should I venture, given my current limitations? 

Thanks for the feedback

My first rental property is financed as such, 30 year/fixed @ 2.75. I didn't pay points/discount fees. This is a VA Home Loan Guaranty. Now, I was approved at $250K, but the property cost around $180K. Now, the free cash flow generation hovers around 30%. I can't ask the bank for another loan, not based on my "Debt-to-income" ratio, or at least I don't think I can. This second property will cost me around $75K-$100K. How do I finance this second rental property? Could I get away with using an FHA loan? Perhaps conventional is my only option here, but then I will wait 6 mos. to save for the down. Any ideas?