All Forum Posts by: Jon Quigley

Hello.  Does anyone know of a good portfolio loan source in southeast Michigan?   I've run out of FNMA based loans and this is the only way I know to continue to obtain houses.  Thanks in advance.   

Thank you!

Hello.  I have a new tenant who likes to hang in his garage and play music.   Level is well within city code and is played mid day at a level that wouldn't normally bother anyone.  But - one neighbor (who I've chatted with many times) is used to a quiet street and doesn't like it.   Both are good folks and have even had beers together but a war may be coming.   a) Where does my responsibility as a landlord end such that it's between the tenant-neighbor-city and b) any general advice?   Thx.         

@Corey Smith and 

@Russell Brazil thanks!  If my wife draws no income can we still get 10 under her name?  Would banks give a loan to someone with no income of their own?  

Thank you both

Hi. I currently have 5 traditional single-family loans plus a HELOC on my main residence. I'm being told by my loan officer that I've reached the limit of 6 per FNMA. However, web searches seem to suggest I can go up to 10. I'm wondering if my loan officer is mixing a local rule tied with my credit union as opposed to a true Fed limit (interestingly, last year my old loan officer from the same credit union said it was 10. New guy says the rule has changed). Does anyone know if I'm able to get more loans?

Other side info:

*Current 5 are all in my name, HELOC is in my and wife's name. We cannot get any new mortgages in my wife's name as she brings in no income

*I've started to investigate portfolio loans (commercial loans) but they are way expensive and will cut into most net cash flow, or I'll have to put down much more thus reducing monthly ROI.

  Thx in advance.  

For my case NOI = rent - principal/interest - taxes - insurance - repairs.

985-262-60-170-100 = ~400/mo.   

Inspection costs are good for 3 years so no more cost there. Repairs are small because everything is new and little repair will be needed for probably 4 or 5 years. Tenants want to stay for three years so vacancy is near zero up through end of year 3. As repairs begin in year 4 or 5 my NOI will go down as I escrow for those repairs. I could always sell at the 5 year mark and skip the repairs all together.

Thanks all for the congrats.  (I can't see how to edit an existing post).    

Mike is right it was 1.5% rent ratio (985/62000*100).  

The cap rate is 7.7% (12*400/62000*100).  Still learning the terminology...  

My favorite number is the ROI. I am all in for $16,700 with annual net of 12*400 = $4800. This gives an ROI 4800/16700*100 of 29% before counting equity buildup; tax breaks and potential appreciation. Good luck getting that in the stock market :-).

I mean $100/mo  (any way to edit one's own post like in FB??)

Thanks @Rob Beland.  This area is a C neighborhood with cap rates around 1.5%.

Purchase:  $62000

Note:  $262/mo

Ins:  $60/mo

Taxes: $170/mo

Repair savings fund:  $100/mo (see note)

Rent:  $985/mo

The seller had remodeled everything, so in the coming 5 years I don't see repairs/capx being any more than $100, though it'll increase after that as the new appliances age.