All Forum Posts by: Jared Bouzek

@Jeff Betschart @Drew Fein may be a good contact for you on this subject.

@Giora Sela If you're looking at a single loan on multiple properties this will fall under the commercial realm of lending because you can't do that with a standard residential mortgage. The answers above mostly apply to residential mortgages but the standards will vary with commercial mortgages where they may not be as concerned with your DTI. Your local credit union may not be your best option for real estate investing. If I were in your shoes, I would research local lenders here on Bigger Pockets or connect with fellow local investors who have experience working with somebody in your area who can do blanket loans. If your ultimate concern is DTI, you may find that you don't have anything to worry about and could use residential financing where you're likely to receive your best financing rates & terms.

@Eric C. I am in Colorado if you have any questions specific to our state.

@Joseph Lynch III If you purchased the property FHA, relocated to another state, and then are relocating back you might be able to get an exception to the 100-mile FHA rule. I would have your loan officer run it past an underwriter.

@Joseph Lynch III You're not going to find a Conventional option lower than 15% down at this point. I would question your loan officer again about FHA or find another loan officer who understands that you can have more than one FHA loan if you're moving due to a job relocation.

@Brian Pollock So I guess there are two answers to this. The technical answer is that if you are obligated on a liability such as your brother's lease, you would need to show that he has paid the rent on time from his own funds for 12 months in order to exclude the debt from your liabilities. This would be accomplished by him providing 12 months of cancelled on-time rent checks.

The other side of the coin is that I've only seen a rent payment show up on somebody's credit two or three times, so if you did not disclose that to your lender, my guess is that they are unlikely to find out you have co-signed with him. Obviously I'm not advocating this. I'm just saying that I've done many loans for people, and if they did not disclose to me that they co-signed on something, I would have no way of knowing if it didn't show up on their credit.

If his landlord pulls your credit as part of the process to qualify your brother, that inquiry will show on your credit for a period of time and the lender will ask you for an explanation of it. So if you decide to co-sign, your cleanest route to excluding it from your DTI would be to wait until you can show 12 months of on-time payments by your brother.

@Matt Berklacy You can google a basic mortgage calculator if you're wanting to understand the monthly payment at given loan amounts and interest rates.

If you want a rundown on how a cash-out refi works, here is a basic example:

$200,000 Appraised Value
$150,000 New Loan (75% LTV)

Say you currently owe $25,000. The $150,000 in funds from your new loan would be used to pay off the $25,000 you currently owe plus pay the closing costs & escrows. Say that's $5,000. So you would be left with $120,000 in funds cashed out to use for more investing.

Hope that answers your question.

@Justin Dominguez The answer is that it really depends on what type of a lender you're dealing with. If you're buying & holding rental properties with a Conventional mortgage, your experience makes very little difference in whether you qualify. If you're working with hard money or private lenders to rehab/flip properties, they probably do care about your experience level to a degree.

@Niki C. Welcome to Bigger Pockets! You're ahead of many others in the simple fact that you've taken action and purchased a property. Good luck growing your portfolio!

@Justin Cooper It's do-able but definitely wouldn't be easy. Multifamily inventory is extremely limited in the Denver metro area and highly competitive. You're definitely going to want to work with a top-notch agent who can be your boots on the ground here. Maybe they could view properties for you and walk it while on a video call with you.

Chris Parker You don’t need 2 years of landlord experience to count rental income. This is a common fallacy passed around. I would recommend you connect with a solid loan officer who knows what they’re doing and can guide you toward home ownership. Chris Mason is in California if you want to talk to somebody who knows their business.