All Forum Posts by: Stone Jin

@Moazzem Hussain The reason why a lot of investor don't work with the big banks is that their underwriting is often time more conservative and they usually stop issuing loans after 4 loans.  For the investors that are trying to max out the fannie/freddie loans (10), they would need to work a different bank that will do them.  So why not build the relationship earlier on?

It'll depends on appraised price and your DTI ratio. Most banks will do 30% DTI, the advantage of having the other units rented out is that the bank will use the rental income at 75% and add it to your income to decrease the DTI. For example if you make 6K a month, Banks would usually want to keep your payment for your debts at 2K so if you are already at 1700 with your house and car, there is only 300 dollar allowance for this new debt. However if you are able to rent all your units out before getting the refi, then you can add 75% of gross rents to your monthly income and it may open up more room for your loan.

The actual percent doesn't really matter, you can pay points to get it lower.  The percentage can be as low as you want by paying more upfront.

Yes, comps are comparables, you can use Zillow, however only use comps that are within 6 months and like property within .5 miles if possible.

@Michael P.

50k

@Michael P. not sure why you think I'm an expert on Toledo or financing.  But since you've tagged me.

@Moazzem Hussain 

1)We are doing a delayed financing with 0 points in the low 4% range.  Honestly at your price point the difference between 3.5% and 4% is like $30 a month.  I would find a lender who is easy to work with rather than spending a lot of effort to save 1/2%.   You may also check with the lender if you are eligible for delayed financing rather than cash out refinancing.  Not sure if there is any significant difference since your property count is below the requirements.  For example, we have to do a delayed financing to pull money out without seasoning since our property count exceeds the threshold.

2)Appraisers are independent.  They do not work for a bank.  Just make sure your properties are clean and easy to access.  Also have some of your own comps available to show him.  

3)My lender in AZ got her license just for me in Ohio, DM me and I can share her info.  

Sounds like in your case a conventional loan would fit the best, however as you grow you will need to consider loans outside of freddie/fannie.

@Dave Poeppelmeier @Remington Lyman

I would agree with Dave. I’m able to buy 1% rule on sf in high quality school districts. I looked at Columbus years ago and the numbers were not nearly as good. As for appreciation, the Toledo market has sky rocketed in my opinion the last 2 years. I remember buying a foreclosure in 2018 thinking arv was around 165-170. Another house in the same neighborhood and street just sold for 230.

Outside of real estate Toledo is a good place to live. I spent several months in the Easton mall area around Columbus and didn’t find it to be overly exciting. I guess it just depends on phase of life that we are in.

@David M. I don't think anyone can answer this as land has different value based on location.  10 acres in manhattan would be worth millions and 10 acres in middle of no where could be worth 1K per acre.  

Just offer something that you would feel like you got a good deal.  The worse they can say is No.

@Shiloh Lundahl congrats buddy. Look forward to catching up soon.

@Edwin Ro  are you looking to buy another primary?  If so you should offer less than 20%.  If I was to buy another primary I would offer a higher purchase price and 3% down or whatever the minimum is for a jumbo loan.  With the interest being so low, I wouldn't put in a nickle more than I had to.  I think the seller will be happier with a higher sale price than a cash offer.  When we sell, I'm fairly indifferent to cash or financing buyer as long as my price is met. I can wait the extra 25 days for financing to be approved.  A quick close does nothing for us, only reason I would accept cash is if I think the comps aren't going to support the asking price.  

@Haley Powell

If you are house hacking with a low down payment of 3% then you should look at areas that you want to live in.  Personal safety and standard of living should be prioritized.  3% down on a 130K is 4K  down payment and 3% down on a 200K home is 6K, for only 2K you should get a better house to live in.  Plus I wager that the price to rent per room is higher as the neighborhoods get better.

@Connor Mullen whether you are house hacking or not you should have a basic criteria and process in place.  We use a service that does background/credit and the tenant pays $35 directly to the provider.   Since you will be next door, you also need to do a gut check on the tenants as well.  If they show up drunk, then maybe that's a sign that they'd be really terrible or really fun neighbors.

@Curtis Harrison in your case you can self manage though 7% is pretty cheap for management.  I have properties out of state that I use management and in the same town I have some that I self manage from 2300 miles away.  Just know your aptitude and appetite and you should be fine.