All Forum Posts by: James Theron Erwin III

I'm looking for clarification on getting financing for a new home with the expectation that I will be renting my current home once I move out. I posted about a week ago asking about HMLs in order to get into the new property and was directed to contact some banks about getting more traditional financing. I have always heard that you can't count a property as a rental until it has been rented for 2 years. Does that mean just counting the income (cash flow, assuming there is any) or does that also include taking out the mortgage hit against my debt to income ratio?

Clearly I had issues with my post. Is there a way to edit it so it doesn't say the same thing twice?

So, my fiancé and I have been wanting to expand into owning rentals. We currently own and live in our perfect first rental. We have been playing with the idea of renting a smaller house close by so we can earn cash flow on our current home (around $500/month). The thing is, there is a perfect next home on the street behind ours for sale. The walk in floor is as big as our current home but there is a complete 1bd 1 bath apartment in the basement with its own entrance that we could get around $500/month. So, combined we could increase our monthly cashflow by $1000 if we could just qualify for the house. We have decent credit but very little down and we would need to rent our current house for 2 years to cancel out the debt to income ratio impact and show income. The question is, can we consider hard money for the new home so we can immediately increase our cashflow and qualify for a refinance loan later or should we just suck it up and rent a place for 2 years and try to buy then? o, my fiancé and I have been wanting to expand into owning rentals. We currently own and live in our perfect first rental. We have been playing with the idea of renting a smaller house close by so we can earn cash flow on our current home (around $500/month). The thing is, there is a perfect next home on the street behind ours for sale. The walk in floor is as big as our current home but there is a complete 1bd 1 bath apartment in the basement with its own entrance that we could get around $500/month. So, combined we could increase our monthly cashflow by $1000 if we could just qualify for the house. We have decent credit but very little down and we would need to rent our current house for 2 years to cancel out the debt to income ratio impact and show income. The question is, can we consider hard money for the new home so we can immediately increase our cashflow and qualify for a refinance loan later or should we just suck it up and rent a place for 2 years and try to buy then?

I have her trust if my original owner who carried back would go for the trade and release his rights to my 40 acres and take rights on her home. But how does that work and can it just be done through a title agency? Can they just switch his carry back and then I sell her my home for $1, all within the same day? It's sort of the same question if I get hard money on her home and then she pays off my owner carry. Can that all happen the same day at title?

I have posted before about this deal in the 1031 exchange forum before and I believe that is not what I need... You always hear that if you find a good deal, you will find the money... Well, I need some help finding the money or more specifically which is the best route for getting the money. Details of the deal- Outside of Kingman AZ, I own 40 acres with a funky 1000sf house through which I have an owner carry back mortgage for 140k after putting 20k down. I have done some improvements to the land (about $10000 in fencing). I have a friend who owns a 9 year old 1800sf single family home in a subdivision very near my primary residence in Prescott Valley AZ (the kingman property is about 110 miles away). I have offered to trade her straight up as she has been looking for property near mine in Kingman and I have been searching for a good deal on a local rental in Prescott valley. She owns her home outright with %100 equity and it is worth approximately 220-240k. I believe my property is worth somewhere around 180k with my 140k mortgage and hers is worth 220k with no mortgage. So, essentially if I can figure this out, I would end up with a 140k mortgage with 80k equity in the other home. I thought it would be a no-brainer to get this financed or figured out but I am having issues... Originally, I thought maybe a 1031 exchange which I was told would make things too complicated and possibly not qualify anyway. I have tried 2 different traditional mortgage guys who have since said they can't make it pencil. So, I'm beginning to research hard money and private money to try to make this deal go through. Does anyone have any suggestions? Also, if my owner carry back holder would be amicable, would it be possible to switch his first trust deed to the other property? He would essentially get my earned equity if he foreclosed and the house in Prescott valley is way more liquid to sell again. Thanks for reading and please feel free to ask any questions about the details of the deal that may be needed to give proper advice.

Okay, I jumped the gun on my PM question... I have mainly been using the mobile app and don't see the message center. I logged in on my computer and found it right away

Wow! Thank you Seth Williams!!! That was very helpful. Silly question, do I need to be a plus or pro member to be able to receive PMs through BP?

Yes! I have read it twice!!

I just listened to episode 39 of the podcast a few days ago and land flipping seems like a niche that would work well for me in my area and help me build more cash for other deals. I have a couple questions for starting out... First, is it better to set up a business phone number first through something like grasshopper or will it be fine for my first few attempts to use my own personal number? Second, Seth Williams mentioned using 2 different websites (1 for buying, and 1 for selling land). Is this necessary for just starting out or are the websites more for higher volume land flipping? Last, are there any links to a good form letter to send to the delinquent tax owners and how exactly are the offers made? Over the phone, through email? I remember Seth saying he had someone tear up his offer and mailing it back to him. Any help or advice is greatly appreciated! James III

I am thinking about doing a 1031 exchange and I have a few questions... First, can it be legally done without a real estate agent to save money? And how? Second, can it involve my home that has an owner carry back paper? It would be my owner carry back property for a home that is owned free and clear.