All Forum Posts by: Jamaal Rogers

@Stephanie Irto, @Shaun Weeks

Thank you!!

Thanks @Shaun Weeks

Out of curiosity why would moving into a smaller home or adding miles to my commute hinder the loan approval?  

Hello BP,

I purchased a duplex using an FHA loan. I would like to refinance this loan and convert it to a conventional one. Once this loan has been made conventional am I allowed to buy another house using an FHA loan. I own three houses at this time.

Thanks 

@Account Closed

Lets look at your investment using a few "rules". These are good guidelines for quickly evaluating properties. If they pass these test than usually it's a good deal ;however, there are always exceptions.

1st- 2% rule- Your income from this property should be > or = $2,700 a month. Your income is $1,200 it doesn't pass the 1% rule. Not good

Next the 50% rule- Take the entire monthly income multiply by 50%. This is what you will use to pay your debt service. In the case above you would have $600.00 to pay $750.00. This would be cash flow negative buy $150.00 a month.

At these terms it doesn't look like the best deal in the world. You can always try to negotiate more favorable terms.

Good luck

Lets assume you win in small claims court and they pay court fees. You will still need to collect on your judgement. That cost more money and time just to get $100.00. It just isn't efficient use of your time. 

IMHO... I'd send one more letter then let it go. Small claims court in my county is $85 not to mention the time you will waste in court. One hundred dollars isn't worth that much time, energy and effort. 

Good luck

Hello Mr. Mcclish,

Congratulations on closing 3 homes.That is very impressive! 

I am also an investor/ real estate agent. How do you structure your yellow letter? Do you use a regular yellow letter notifying the seller you want to buy their house or do you tell them you can buy or list there home. I'm starting a direct mail campaign any feed back would be great!