All Forum Posts by: Joe Gravelle

Hey BP'ers,

I thought I would write a quick post to make sure I am not missing something when considering my next step. I'd appreciate anyone/everyone's thoughts and input. I am in the process of looking for lenders but I want to seek advice before those conversations so I am as informed as I can be.

I currently only have one investment property which is generating good cash flow. I intend to rent out my primary residence, and in order to prepare for that I have refinanced from a 15 yr to a 30 year or in order for it to also cash flow when I find something new.

Here's the dilemma: I am looking for the best possible direction to take to acquire a third home. My primary residence is worth 250k and I owe 175k so there is the option to tap equity. On the rental property, I owe 150k and it is worth 200k. 

With both mortgages, I am currently at 30% DTI and I have no other debt with about 10k in liquid funds. This 30% DTI does not include rental income because I have only owned it/had tenants for 6 months, so I don't believe a lender would consider it. Are there ways to have a lender consider my rental income this early?

I like the idea of finding another home and moving into it to get owner-occupied financing. But whether I pursue owner-occupied or not the question of down payment comes into play. Should I tap equity for a stronger down payment? If so, this would obviously have a negative result on my DTI.

Is there a way to have a lender qualify me based on my rental income and perhaps what my current home would rent for once I move? Rather than only on my income from my career.

So I have given you my situation, before you give advice, it would probably be helpful to know my goals. I am currently interested in investing in residential real estate( SFR, duplex, etc).

Given this situation, what would you do?

Thank you in advance for the insight, I am excited about my next deal.

Hey BP Community,

So far I only have to SFR's and I am hoping to branch out into the multifamily arena. I have two questions:

Does anyone recommend any multifamily RE brokers in the Denver area?

And does anyone have any specific recommendations for lenders/banks/credit unions who finance multifamily deals? If you do, do you have the name of a specific loan officer you have dealt with or would recommend? (Again, in the Denver area)

Thanks in advance!

-Joe

Thanks so much to everyone that responded, and a special thanks to @Bill S. For such a thorough response to my question.

I very much appreciate all of you!

just fyi- I already rent Brandon Turner's ultimate guide to finding renters. I'm more just looking for other's input.

So I'm closing on my fist investment property later this month. With the excitement of getting my first place comes the responsibility of finding good tenants. I'm curious what the BP community thinks about two questions I have about finding good tenants. I'm reading a book that said that the best way to find good tenants is to hold an open house rather than just posting your property online. What is your approach to finding quality renters?( I.e. - where do you post online?, do you hold open houses, etc.?)

Also what minimum qualifications do you set?

I'm considering a minimum credit score of 700, income of at least twice monthly rent, no pets and good rental references.

 Also, what is your trusted company that handles credit/background checks?

Any thoughts are much appreciated!

thank you, @MattM.

The deal didn't work out, but I'll keep your offer in mind.

Correct me if I'm wrong, but I don't think permits will be needed. It will just involve new carpet, paint, and updating kitchen and baths.  

does anyone know of or recommend any quality general contractors in the Denver metro area? I looking for one to help me on a fix and hold property.

@Mickie McNie, thank you for the info!

andy,

I'm very new as well. I have have a question for you. Where did you find the listing for the foreclosure/auction listings? I'm in the Denver area and am not sure where else to look except on the mls?