All Forum Posts by: Jeff Daring

I am under contract for my my first property, which would also be my primary residence, and was pre-qualified/approved through lender A which is on the contract. There is a mortgage contingency on the contract. If I am also pre-qualified/approved with two other lenders, B and C, and lender A denies financing, can the seller see that I am approved with other lenders?  Essentially I want to know if the deal can be killed at my discretion as soon as lender A denies financing or if I would then have to get denial letters from lenders B and C as well to kill the deal.

Quote from @Jay Hurst:

Quote from @Jeff Daring:

Quote from @Stephanie Medellin:

@Jeff Daring  The first broker is correct.  Because you are living rent-free, have no housing payment, and no management history, and are buying this as an investment, you will not be able to count rental income to help you qualify, unfortunately.  You will have to qualify off your own income.  

 I apologize for being unclear, I will be living in this property. 

 In that case then you WOULD be able to use rental income .

https://selling-guide.fanniemae.com/sel/b3-3.1-08/rental-inc...

 Thank you! They accepted my offer so I am happy to have this confirmed ! 

 I apologize for being unclear, I will be living in this property. 

  To clarify, I am not paying rent currently (I have been giving cash to a family member but it would be hard to prove). Lender two above is saying we can use the income from the investment property I am about to purchase to increase my approval amount, and lender one is saying we can’t because I don’t have landlord experience and am not currently paying rent. He also said that lender one could put me in a jam bc apparently all lenders have to follow the same conventional guidelines. I just want to make sure that is not true because I want to proceed with lender two but dont want to get caught in a jam. 

I was told by one broker today that I wouldn’t qualify for over a certain amount on a property because first time buyers with no landlord experience cannot use the rental income from the properties towards their qualification. Another broker told me this is not the case. The first broker said all banks must adhere to the requirements of conventional loans. This is my first property, I have been living rent free and have no landlord experience. I want to avoid a situation where a lender is telling me I’m prequalified and then there is a hiccup once we get under contract. Is there such a requirement? I am looking at a 4 unit for 400k and the place has 57k annual income. I was only approved for 385 based on my w-2 by broker one but broker two said I would be qualified well into the 500s bc the property has proven income. Which is correct? 

I have been trying to find properties in the Rochester, NY area off and on for the last 2-3 years.  I haven't been highly motivated, just wanting to get in the market when the right opportunity came along.  I actually do need to find a property in the next 90 days due to my work situation changing, but it seems like an almost impossible task. Lately I have been using the BiggerPockets tools to analyze deals and it seems like essentially no properties will cash flow these days in any of the B+ greater areas.  Most multi families go for above asking by 10-20% and often are cash deals.  I just want to find a property that will cash flow when I leave (currently trying to house hack).  Does it make sense to invest in say a 350k property that will cost me 200-300 a month to operate even after I move out if its in a good neighborhood?  Are people just doing the appreciation play these days?  My concern is that housing values have gone up so much lately that, like any market, the next cycle could come around and leave me in a bad situation.  My other thought is that it may just make sense to buy the property so that my monthly burden is equal to or less than it would be if I rented in the area, because at least I am paying towards my own equity.  Open to any thoughts or suggestions.  

 Hi Preston,

I sent you a message.  Lets chat!

 Thank you for the kind words, Julio!

Greetings! I live in the Rochester, NY area and am trying to begin my journey in real estate investing. I am interested in multi family long term holds and BRRRRs. The market has been very difficult to enter the last few years but I’m hoping with the help of bigger pockets I can finally pull the trigger on my first property. The market here is extremely difficult to enter due to cash offers and low inventory. Trying to make it work!