All Forum Posts by: James Sutton

hi Annie,

Half true. Yes, the home is going to be our primary residence for a bit.

I already have a VA on our current house which we have lived in for two years, and, are going to keep and rent out. Essentially I will have two VA loans.

I thought the same as you. Knowing now the opportunity, you could use VA, move in for a year, rehab and then use another VA for the next house but keep the old, refi, and repeat.

Thanks Matt and Chelsea!

Hey Everyone,

I am under contract on a house with a VA loan. Great to have a VA loan in which I only need 17% down, and get an amazing interest rate.

Downside is, the VA Appraisal! I know they are going to fail the house on chipped paint, the deck, and a sun room which is experiencing rotting siding, and possible support issues.

I can do most of the work myself; however, as most of you know, with a VA loan I need to get this completed before closing.

So I'm looking for a good contractor or any construction contacts. Would be great to get some referrals from the community. I'm looking for:

- Contractor

- Roofer

- Carpenter

- Back Deck Guy 

- Bathroom remodel, so (electrician and plumber)

- Flooring guy

- Carpet guy

I'm looking to get bids and estimates.

This will be our 6th property my wife and I have purchased. I usually do all of the work myself though I'm taking this opportunity to force myself to hire out the work and take a chance at freeing up time so that I can look for deals and scale up a bit. 

Any help would be greatly appreciated.

Regards,
JD

Thanks Michael

Hello Everyone,

I'll be picking up a SFH in OKC and I am looking for a referral on a good property management company. Any help would be much appreciated!

Thanks for the numbers guys. Ya, for right now I'm thinking to just come down from Denver and do the work myself. At the moment, I'm working in Africa but will be home in a few and have a couple months off.

What about sustainability? What are the factors for the next 10 years that support demand growth or shows demand risks to the Pueblo area? It seems like a lot of land plots going up for sale and possible development which will occur in the next 5 years.

Thank you for the spreadsheet, I think I understand it now. Taking off of the schedule E rental income and inputting into the spread sheet gives me the "Net Rental Income(loss)". Mine is positive, so that amount is added to my over all gross income when calculating my debt-to-income ratio.

As you said, my rent received was only in December. So I to my estimated 12 year rent received, (lease is for $1,500) and then take 75% = $13,500. So the $684 adds to my monthly gross income when calculating my debt-to-income ratio?

Thank you very much for that.

That's excellent, thank you. I'll look at this in the morning tomorrow to ensure I have a good understanding and revert back if I have any questions. Thank you.

Hell Everyone,

I'm trying to figure out how much the debt of my cash flowing rental condo adds to my overall "debt-to-income" ratio. 

I have a 2 year outlook and deciding whether it would be better for my wife and I to a) sell our house and move to the town where we want to be, b) stay at our current home and purchase a rental property, or c) buy a new house, move, and then rent out our current home we live in. I think a big part of the deciding factor for those three decisions will be what my debt-to-income percentage we will have and the ability to get a mortgage. 

The Condo: (Owned 6 months, rented for 5 months)

Purchased November 10th, 2015 - $122,000

Appraised when purchase (before $8,500 repairs) = $172,500

Mortgage + HOA + Insurance + Taxes = $856.15

1 year signed lease Rental Income = $1,500.00

Net Monthly Cash = $643.85

My Wife and I:

I have a credit score of 804 and she has 795

We will have 20% for which ever property we choose.

If I choose all the income we have (Gross Monthly) and take the Monthly Debt percentage, we both combined we have a "Debt-To-Income" of 28%. That includes the rental income, and monthly rental expenses.

Contractor:
As for myself, I am an offshore oil and gas inspection manager. I'm freelance and earn contract monthly sums. It's a bit hard for me to analyze my gross monthly. I question whether it would be straight gross, or, "after business expenses but before tax liability". Should my gross be based before or after estimated self-employment tax?

I feel like I'm on the line of making out my leverage and ability to get traditional mortgages or portfolio loans. However, I think I'll be able to get one more and it seems knowing which avenue will affect my debt-to-income the best will give me the best opportunity to get a loan. Then I can assess which method will best support improving our monthly cash flow and lifestyle goals.

Any advice would be much appreciated.

Afternoon Guys,

What is everyone getting for rent for a 2 bed 1 bath and a 3 bed 1 bath in Pueblo? Any of you guys picking these up from foreclosures?

Thanks Bill. I told my wife that and she had a life. She is on it now though, reading Rich Dad Poor Dad and even taking part in morning affirmations as I am trying to start doing. It's nice to have a supportive wife when trying to build wealth and cash flow.