All Forum Posts by: Isiah Ferguson

Quick question. I’m in the process of replacing flooring. I ripped the vinyl flooring sheet and now I have these patches on the plywood. I’m looking to install Waterproof Rigid core vinyl plank flooring. Can I just simple put the flooring on top of the patches or do I have to continue to get it up ? From my understanding I am able to go over the patches ?

0 Votes

Be relentless, build yourself up, get the information, and sometimes it take years to accomplish goals.

1 Vote

I own 3 units as of now. I started late 2016. 1 duplex and a townhouse. This is only the beginning.

7 Votes

Originally posted by @Chris Mason:

Originally posted by @Isiah Ferguson:

Hey BP.

I was wondering is there a way I can refinance 2 properties that I have which are both free and clear WITHOUT a job.

I looked into a hard money loan which based off an individuals' assets in total and it is a 30 year fixed but the interest rates are between 6%-10% depending on my credit score. I think the rates are too high.

Do you guys have another way I can go about this ?

How to refi without a JOB ???

We live in 1 of the homes now me and my wife.

I have 2 year W2 for rental income through my LLC but it does not reflect my potential income. I'm looking to rent an apartment and move out turn my 2nd home which is the townhome into a rental.

I’ll have a duplex rented and a townhome. Personally, I’ll be renting temporarily. For the Potiential rental income, both properties will bring in 2600 in total. From this point, I’m looking to refi both at 75%. I'll take the cash from both properties and buy a primary residence cash and take out a heloc.

Am I being realistic when it come to lenders ?

I did some envelope math at @J. Martin's event a few months back in response to a similar question and determined that in theory if your net monthly rental income is ballpark ~2.5x your monthly obligations [ personal PITI where you live + minimum payments on consumer debt obligations ], and it's packaged/submitted to underwriting correctly, your DTI will work out fine. You will be able to purchase/refinance up to that point which ~2.5x is reached. Since then we've closed a few for unemployed folks with no income (other than rental income), turning envelope math theory into actual practice.

In one case it was a deceased person's tax returns that were the basis for the rental income determination. The heir hadn't done tax returns yet that included income from the inherited rental properties, so we just used the tax returns from the dearly departed's trust.

If you want to do a rough ballpark to see if you might meet this, pull up your most recent tax returns (or 2017 before you file them), look at net taxable number at the bottom of Schedule E, add back depreciation and mortgage interest, divide by 12, and subtract your P&I payment (we removed just the interest earlier, now we're including the P&I) to arrive at ballpark monthly true net cashflow, and compare to personal monthly debt obligations.

In your case, the strategy might be to find a local lender that'll entertain this, take out as much as you can using Fannie money, and only use hard money once you're tapped out of Fannie money.

Thanks for the feedback. Hearing this shows' me that my plans is possible.

1 Vote

Originally posted by @Ryan Murdock:

With the limited amount of info I have here it sounds like your best bet is to find another job then apply for the loans.

I figured that would be the only outlet other than Hard-money loans. Thanks for your input.

0 Votes

Originally posted by @Ryan Murdock:

You don't have a job but you must have some type of additional income in order to survive, right? Does your wife work? The bank is going to need to see something more than the rental income you stated.

My wife has an Hourly wage, job and doesn't get paid much. I recently left my job and that's another story.

0 Votes

Hey BP.

I was wondering is there a way I can refinance 2 properties that I have which are both free and clear WITHOUT a job.

Do you guys have another way I can go about this ?

How to refi without a JOB ???

We live in 1 of the homes now me and my wife.

I have 2 year W2 for rental income through my LLC but it does not reflect my potential income. I'm looking to rent an apartment and move out turn my 2nd home which is the townhome into a rental.

Am I being realistic when it come to lenders ?

0 Votes

Originally posted by @Chris Mason:

Originally posted by @Isiah Ferguson:

Hey BP.

I was wondering is there a way I can refinance 2 properties that I have which are both free and clear WITHOUT a job. I looked into a hard money loan which based off an individuals' assets in total and it is a 30 year fixed but the interest rates are between 6%-10% depending on my credit score. I think the rates are too high. Do you guys have another way I can go about this ?

Yup, these come up once in a while. If you have no consumer debt and your net rental income is about 2.5x (or higher) your personal housing expense, that'll typically translate to a workable DTI.

Prepare to be envious:

The last one, he lived on the East Coat and inherited two free and clear rental SFRs in A neighborhoods in SoCal, quitting his job virtually the next day. He lives with his fiance and she does not charge him rent (bank statements, etc, were scoured by the underwriter for anything that resembled him paying rent!). His property taxes for each property, thanks to California Prop 13, was like $100/mo. Sooooooo yeah, he certainly met that 2.5x rule that we derived at J Martin's annual summit thingie in Oakland, and the cash out refinance closed.

I told you that you'd be envious!

Thanks for the feedback. Can you tell me if this is possible. I live in 1 of the homes now me and my wife. She currently works etc. I have 2 year W2 for rental income it does not reflect my potential income. I’m looking to rent and move out turn my 2nd home into a rental. At this point I’ll have a duplex rented and a townhome. I’ll be renting temporarily. For the Potiential rental income for both properties will be 2600. From here I’m looking to refi both at 75% take the cash from both properties and buy a primary residence cash and take out a heloc. Am I being realistic when it come to lenders ?

0 Votes

All Forum Posts by: Isiah Ferguson

Isiah Ferguson has started 64 posts and replied 313 times.

Post: No more 9 to 5 for me.

Post: Cash Tenant, No E-mail (Crazy...)! Rent payment options help!

Post: WHAT should I do here ??

Post: The struggle is real...

Post: How many units do you own?

Post: 2 properties, I have which are both free/clear WITHOUT a job

Post: 2 properties, I have which are both free/clear WITHOUT a job

Post: 2 properties, I have which are both free/clear WITHOUT a job

Post: 2 properties, I have which are both free/clear WITHOUT a job

Post: how can someone refinance a property with a SALARY JOB ?