All Forum Posts by: Jay Williams

We did some STR in a multiplex w/ coinop in the basement. Fully disclosed to the ST renters that laundry was coinop. We left the renters coins for one load and a tide pod with their welcome kit. We figured the ones who needed it would appreciate it. The ones who didn't need it (most) left the coins/tide pod for the next renter.

@Steve Wilmers

Thanks! Maybe my list of potential questions was a bit much. Just want to make sure that my discussions with the banks make it easier to compare the products.

Hi BP,

I have two main questions:

1.) Can you "shop" for HELOC's in the same way that you would shop for an auto loan?

2.) If you can shop, what questions or tips will get you the best results?

A little more info:

The HELOC would be on a MF primary residence (house hack). I have had a recent appraisal done so I know roughly what the equity will be. However, I fully understand that the financial institution will likely want to have their own appraisal done so I'm not hanging my hat on anything. I also know my credit score (high), but that is also no guarantee that the score I see will match the scoring model they pull.

Here are the questions that I have compiled from other research. What are some other good questions someone should be asking to get the best product?

Interest

What is the intro rate?

What is the intro period?

Is the rate variable or fixed? Is there a fixed option?

What is the margin above prime after the intro period?

Is there a maximum the variable rate can rise during a certain amount of time?

What is the maximum rate?

Does the bank/CU offer rate discounts (autopay, current customer, etc)?

Fees

What are the closing fees?

Inactivity Fees?

Cancellation/Prepayment Fees?

Annual Fees?

Draw Fees?

Other
Minimum Draw?

Required Balance?

What is the payment structure (int. only, 1% princ., etc)?

Is there a balloon payment?

What is the draw period?

What is the max LTV?

Thanks in advance!

 A group has filed a lawsuit against eRentpayment and they are seeking class action status.

https://businessden.com/2018/01/25/disappearing-re...

eRentpayment has acknowledged the lawsuit.

https://support.erentpayment.com/kb/a166/04-09-201...

@Andrew Postell @Chris Mason

Thank you both! That info is very helpful - I had not seen that in prior research. I'll dig harder next time.

I spoke with the loan officer this morning and we walked through the numbers. He wasn't aware of any overlays, but he's doing some work today to find out if an overlay is the issue or if there is something else we are missing. I'll keep you posted!

@Andrew Postell I have not gotten a 2nd opinion from another bank. This was with a local CU that I've been with for some time (gotta work the relationships, right?). I've been in talks with the loan officer trying to figure out why none of my rental income offsets the PITI.

@Account Closed I love the idea of Detroit getting it. I can't think of another city where Amazon would have the square footage available as a downtown campus. It seems Amazon would also have a significant sway with the city/state governments to a degree they wouldn't get elsewhere.

Just a clarification, the subject property of the refinance is the SFH, not my primary resident (MF).

Hi all,

Background: 

I've submitted an application for a refinance on a SFH. The house belonged to a grandparent with a reverse mortgage. I'm trying to use a refinance product to clear the balance of the reverse mortgage and pull some cash for minor reno.

Currently house hacking. I understand rental income will only count 75% because of Fannie Mae underwriting. My tenants cover 93% of the PITI of primary residence (70% of PITI under FNMA's 75% standard), but the bank is not recognizing any of this income because on the whole the property isn't covered 100+% by tenants (I rent 2 of the 3 units, live in the last with 2 years of tax returns available).

Question:

Why is the bank not recognizing any of the income, but in turn are recognizing the full amount of PITI against me in the DTI calc? According to the loan officer, there are no questions re: credit or reserves, so I'm at a loss why the DTI calc is not more straightforward.

Best,
Jay

Hi all!

I'm a relative newbie from Washington, DC. I had dreams of owning a multifamily after seeing the impact of other people in my life owning rental real estate. In 2015, I finally made that happen with a building in Washington, DC that I live in and rent out the other units.

My wife and I had been dreaming/plotting our next step when my Grandparents (and real estate inspiration) passed. We have this big idea to purchase their house/property (a few acres of slowly developing country land in SC) and redevelop it into multiple houses. The idea is so far outside of anything we ever considered before that I would regret not going for it.

I've read through Craig Grella's awesome Residential Land Development write up a few times. It was very eye-opening and gave me a lot more pieces to research and polish. But he lists "Inability to Seek Advice" as one of the top reasons for development failure, so here I am! I'd love input along the way and I'll try to keep you updated on progress - even if it's "Failed miserably, but learned a ton. On to the next one!" (but I hope it's not that).