All Forum Posts by: Jay Hurst

Conventional loans with 5% still require mortgage insurance. It is cheaper then FHA mortgage insurance, and you can potentially drop it in the future without refinancing unlike FHA.

 So was the house I am talking about. 

 It would "pop up" because you do not want to commit mortgage fraud. 

 @David Cherkowsky The above is absolutely correct, BUT do not assume you cannot qualify for a conventional loan. Make sure a competent LO with a NMLS number runs the numbers from you. My team has conversations all the time with borrowers, especially those that own real estate, that thing DSCR options are their ONLY options. But, guess what they are not loan officers or underwriters so they turn out to be wrong. (do not trust me to build the house, but I do know how to qualify you FOR the house.) Don't disqualify yourself without talking to an expert.

 I live in a historic neighborhood in Dallas in which there was a wedding venue operating. That is until the neighborhood got tired of the parking and parties from the venue, and got it shut down. (I did not hear the noise or  care but those much closer to the house did) so be careful with these kinds of plans  in the middle of a residential neighborhood.  

Also, it is bananas that a house like that is one is only 849k. Location, location, location! 

@Joseph Leibovitch  What are you looking to do with the potential funds?  and what do you owe and what do you think the property is worth? 

I ask because as mentioned above if you have an investment that is  going to return 10%+ then does it matter what the rate is in the long run?  (I know, nothing is certain but just hypothetically) and all cash out loans are not created equal. if you have a lot of equity you can borrow up to 60% with the lowest rate possible, which would be close to a half point lower then borrowing up to 75% loan to value. 

 @Nate Marroquin   You can use the income from your tax returns on the current rental adding back your paper loss (depreciation) and add back the mortgage interest, property taxes, home owners insurance deductions on your tax returns.  This is the form that would be used: https://content.enactmi.com/documents/calculators/Form1038.C...   

After punching your rental income from tax returns MOST people more or less break even ion a rental. That means there is not really an effect on the debt to income ratio neither positive (income) or negative (loss) but rather simply making that payment  non issue. 

And when you buy a 2-4 unit you can use 75% of the rent that the appraiser says will bring in on the units you will not be occupying. So, if the rents for a duplex would be 2k each, you can use the 75% of 2000, which is 1500 as income to go against the payment. So, if the total payment was  2500 you would only need to cover 1000 dollars a month with your income. 

Of course your other debts including student loans go into the mix to come up with your total debt to income but the income needed  is a lot smaller then a lot of borrowers in your situation tend to  think.  

@Benjamin Bieber   I have heard of the company you mention but know nothing specific about them at all, but anytime you buy a property you should do your OWN due diligence. Do not simply trust a turn key provider, a wholesaler or even a real estate agent that is supposed to be looking for your best interest. Understand that they all have an incentive to sell you a property. Their  numbers might be spot on, but you want to make sure you understand that yourself, not just taking there word for it. 

 Then it sounds like you have your mind made up then right? if you have lived in the property for 2 out of the least 5 years you will not pay taxes on the gain, so if you want to sell make sure you do it soon enough to take advantage of that tax advantage.  

 @Eric Johnson   Investor and lender based in Dallas. Love to connect.